In 2024, the global passenger traffic hit 9.5 billion, marking a 104 per cent increase from the 2019 numbers. Revenue passenger kilometres rose to $8.8tn, reflecting a compound annual growth rate of 3.6 per cent, with a projection of 12 billion by 2030. Yet, despite Africa’s population of over 1.4 billion people, the continent accounts for less than three per cent of global air traffic, highlighting a significant gap in air connectivity and market participation. In Africa, air travel has been constrained by a lot of restrictive bilateral policies, high expense, and limited connectivity, such that most African countries are better connected to Europe and the Middle East compared to how they connect to other African countries. As Africa continues to struggle with the challenge of fully realising the objectives of the African Continental Free Trade Area, an integrated air market remains crucial for trade and economic development of the continent, and SAATM can effectively offer practical solutions towards achieving that. But what exactly is SAATM?
The Single African Air Transport Market is a flagship project contained in the African Union’s Agenda 2063. Its establishment was proposed in 2015 and formally launched on January 29, 2018, by the African Union Assembly, although it was originally derived from the Yamoussoukro Decision of 1999. Its major objectives include creating a single unified air transport market in Africa, liberalising civil aviation, and driving the continent’s economic integration agenda.
SAATM is positioned to ensure aviation contributes significantly to connecting Africa while promoting its social, economic, and political integration, as well as driving intra-African trade and tourism. Currently, SAATM has 34 member countries, which include Benin, Botswana, Burkina Faso, Cabo Verde, Cameroon, Central African Republic, Congo Brazzaville, Cote d’Ivoire, Egypt, Ethiopia, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea (Bissau), Guinée, Kenya, Lesotho, Liberia, Mali, Morocco, Mozambique, Namibia, Niger, Nigeria, Democratic Republic of Congo, Rwanda, Sénégal, Sierra Leone, South Africa, Swaziland, Tchad, Togo, and Zimbabwe, with the majority of its member countries representing over 80 per cent of the existing aviation market in Africa, presenting a formidable potential for the initiative to thrive.
By transforming the continent into a unified aviation market, SAATM would eliminate the need for bilateral air service agreements between member states for intra-African routes. This would allow African airlines to operate freely across borders, choosing routes based on economic and commercial viability rather than political agreements. Such liberalisation would promote the free movement of goods and services, encourage cross-border investment, and strengthen African-owned airlines by increasing their visibility and competitiveness on a global scale. It would also help raise safety standards, harmonise competition regulations, and spur the reform of visa policies, making it easier for Africans to travel within the continent. Importantly, SAATM includes provisions to protect consumers through a dispute resolution mechanism involving negotiation and arbitration, with the establishment of a Board of Appeal and an Arbitration Tribunal. This ensures that the rights of passengers and stakeholders are upheld in the face of operational disagreements or policy breaches.
On the agricultural and food security front, SAATM will be pivotal in connecting agricultural communities to appropriate markets, speeding freshly produced agro products to final consumers. A single African air transport market will aid in increasing productivity by driving investment and innovation and enhancing business operations and efficiency.
In terms of tourism, a single air transport market in Africa is indispensable, such that it provides and facilitates convenient air service capable of transporting large numbers of tourists to a region on the continent.
The workability and the economic impact of a single air transport market in Africa are evidenced by a study carried out by AFCAC and IATA in 2015. The study indicated that full liberalisation of the 12 key African countries in the air market- Algeria, Angola, Egypt, Ethiopia, Ghana, Kenya, Namibia, Nigeria, Senegal, South Africa, Tunisia, and Uganda- would add $1.3bn to Africa’s GDP. It also reveals that over 155,000 new jobs will be created, with consumers benefiting from the 75 per cent increase in direct services and 25-35 per cent of fares saved.
Despite the aforementioned benefits, the SAATM presents, the initiative’s implementation would definitely not go without constraints. Among the most formidable barriers is uneven adoption by AU states, given that out of 54 countries in Africa, only 34 have assented to the SAATM initiative, resulting in a drag on the full actualisation. Other constraints are infrastructural and safety oversight, limited cooperation between national regulators and RECs, and national protectionism, as well as resistance from other legal carriers. Despite these barriers, effective implementation remains paramount in achieving the SAATM.
To achieve the objectives of the SAATM, effective implementation is key. One pivotal way to drive this initiative is the continuous advocacy and communication of its objectives to all stakeholders so they can prioritise and execute the action plan. Although similar, such has been done by the African Union Commission, the African Civil Aviation Commission, and the African Airlines Association, which came together and launched a handbook on the SAATM.
The handbook serves as guidance on SAATM implementation, aiming to assist all stakeholders in working together towards taking advantage of the initiative to boost Africa’s development. While this makes sense, more awareness is still needed to gain effective implementation.
The SAATM can be instrumental in boosting intra-African trade and investment, creating jobs, and increasing air traffic revenue for the continent. While this is good, effective implementation remains paramount in achieving the SAATM objectives, given that constraints such as uneven adoption by AU states, infrastructural and safety oversight, limited cooperation between national regulators and RECs, and national protectionism exist. To address these concerns, it is important that signatory states fast-track full implementation through strengthening institutional coordination between the SAATM and AfCFTA secretariats.
Equally important is the need to increase investments in airport and cargo infrastructure, particularly in the underserved regions, as well as ensuring regulatory harmonisation, coupled with member states financially supporting airlines to boost capacity.
Innocent Orji is a seasoned researcher and a Free Trade Fellow with the Ominira Initiative
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