Summary
- European institutions combine to take concession on new Burkina Faso airport.
- Foreign investment in the African continent set to increase following Rwandan airport deal.
- African aviation set to grow quite quickly in latest IATA forecast, and already taking 9% of global airport infrastructure funding on new airports.
- New airport will be built with ‘European’ ESG principles at the forefront.
- The involvement of Meridiam and Marseille Airport could reawaken interest in Africa among other investors.
It was not that long ago that the ‘west’ eschewed any approach from African governments to assist in the financing and construction of existing or new airports, and the private sector was notably wary.
The main reasons were the lack of ‘open skies’, of low-cost airlines, of any sort of airlines on some routes (notably west-east), of the skills needed to develop aeronautical or non-aeronautical revenues, as well as a lack of governance and the potential for corruption (among many others).
In the CAPA ‘Airport Privatisation 2020 report and prospects for 2021’ published earlier this year, Ethiopia‘s Transport Minister Dagmawit Moges was quoted as describing the state of airport infrastructure in the majority of African countries as “outdated” and “unable to handle the increasing volume of passengers or cargo”.
She noted, “investment and expertise” would be needed to modernise African infrastructure and services, stating, “These could come through public-private partnerships or through opening doors for private capital investment”. A consequence of these measurements would include “increase[d] competitiveness”, “additional routes, more frequent flights, better connections and lower fares”.
It sounds like the chicken and the egg.
While the west dithered, the Chinese didn’t, as they haven’t with any variety of infrastructure project there; always keen to do deals which benefitted the African country’s infrastructure while allowing the Chinese side…