Speaking notes by Minister of Transport, Jeff Radebe, at the Aviation and Economic Development Summit

Let me first express my gratitude for the invitation to be part of the panel on this very important topic of Aviation and Economic Development. This Summit is a clear manifestation of our mutual wish to strengthen our relations in civil aviation, which, without any doubt, provides new opportunities and added value to all nations.

Quite frankly, aviation has a unique virtue to bring people closer together, promotes economic growth and facilitates trade. It also plays a crucial role in the wider economic development of society, within Africa, and of course between Africa and other continents. I strongly believe that, within this contexts, Africa has an aviation success story to tell.

In particular, as South Africa we cannot talk aviation and economic development without a brief reference to the strides we have made in placing civil aviation at the centre of our economic growth and improved connectivity of our people with the rest of the world.

A quick glance at our air transportation tells an interest story which a decade ago only existed in our dreams. As South Africa, the aviation industry has played an extremely important role in the achievement of our sustainable growth. The expansion of domestic and international air services has become a prerequisite for the development and growth in our various sectors such as tourism, business and trade facilitation.

A decade ago, our passenger growth particularly the rate of domestic growth was at 7,5 percent compared to the global rate of three percent. Similarly, while global international traffic grew at an average of 7 percent during this period, South Africa experienced an international passenger growth rate of approximately 8,5 percent and is now way beyond 10 percent mark per annum.

This has been driven by an increased volume of international traffic flowing into the country. For example, in 1993, South Africa received not more than 12 international airlines. But today more than 70 international airlines fly into the country on a regular basis, with more than 100 air transport services agreements in place and the recent entry of new foreign carriers such as Delta, Thai Airways and Virgin Nigeria and an increased in international passenger arrivals.

In particular, our Airports Company South Africa has had to handle 16,8 million departing passengers annually and currently experiencing an annual growth of 10,8 percent. This positive growth in passenger numbers is largely due to the domestic passenger market driven by stable economy and Growth Domestic Product (GDP) growth of about four percent. The deregulation of our industry in the 90s has also resulted to a proliferation of low-cost airlines making it more affordable to use air transportation.

With an increase in passenger traffic, Airports Company South Africa (ACSA) has also had to increase its airports investment to R19,3 billion for the infrastructure development programme at its network often airports over the next five years including the building of the new airport in Durban, in order to ensure the provision of infrastructure capacity ahead of demand.

The driving force behind this growth has been the development and implementation of our five-year Airlift Strategy to put in place effectively structured regulatory measures in order to increase tourism growth for South Africa and to unblock obstacles through regulatory mechanisms and bilateral and multilateral air services negotiations.

In particular, the strategy supports the Millennium Development Goals (MDGs) and the objectives of New Partnership for Africa's Development (Nepad) to increase African connectivity and access through the accelerated implementation of the Yamoussoukro Decision. The overall objective of the airlift strategy has been to increase aviation's contribution towards sustainable economic growth and job creation. But more importantly to provide guidelines for various unique markets with emphasis on the needs of intra-African air services.

We believe that our strategy has been able to promote the provision of adequate air service capacity and infrastructure to cater for the projected growth in air movements within South Africa and between South Africa and its key international partners.

Ladies and gentlemen, but I must emphasise that these success stories have not gone without significant challenges associated with human resources and capacity development as well as aviation safety and significant global air traffic demand, not only for South Africa but for the continent as the whole.

The subject of aviation human resources and capacity development has become one of the most important issues today and presents a primary barrier to growth of the industry. The industry has changed a great deal over time especially with regard to globalisation, airline alliances and mass migration of specialised skills. Obviously the human capacity issue has had an adverse effect on aviation within the continent and in effect has resulted in placing a tremendous strain on cardinal bodies, such as airport management, civil aviation oversight authorities, airlines and air traffic and navigation services. This effect has a direct correlation to manufacturers of aircraft and related equipment.

As you know, human capital makes up an essential component of this industry, a component that by no means is in abundance in Africa. Our talented and skilled professionals are being lured to other parts of the world, with negative impact to Africa. With the increased growth in aviation, and annual growth projected at 6 percent for Africa, human capacity constraints has resulted in an added barrier for this ever-dynamic industry, and it has the unquestionable potential of hindering growth within the aviation industry.

Given this context, it is critical that Africa's air transport industry jointly with its global partners consider a strategy to enhance human capital growth and development. The economic contribution that this industry makes is immense and with the continued growth prospects, it is expected that a successful human capital strategy will culminate to a significant benefit for air transportation in Africa and its suppliers of aircraft.

We also need to pay particular attention to ways of improving global air safety. African aviation forms a small percentage of the overall international activities yet represents a significant level of accidents at an international level. It is prudent to note that a large percentage of these accidents are as a result of the use of older generation aircraft. This is compounded by the fact that older generation aircraft are environmentally unfriendly. This is a challenge however I am convinced that we have strong partners such as Boeing who will jointly assist us in addressing these challenges.

Africa has about 500 national airports, about 117 international airports and more than 1 000 other airfields. These figures are a true reflection of how the expansion of our aviation industry will strengthen the economy and boost growth in job creation and investment.

Our success depends on stable operating environments, sound governance systems, trained and skilled employees as well as stronger partnerships thus strengthening the steps we take into the future.

The implementation of the liberalisation of African skies is also a key component in order to enhance growth within the industry and trade sectors of the African economies. The implementation of the Yamoussoukro Decision is a major milestone which must come to fruition to liberalise the African Airspace and integrate African carriers. However, this decision is yet to be fully implemented even when African. States continues to claim their signature status of the treaty. The African Union has its work cut out to ensure that all States subscribe to the implementation of this Decision.

Safe Skies remains the epitome of our objective in aviation. The safe skies for Africa initiative is still part of the vision for strengthening Africa's relationship with the United States of America.

This initiative has amongst its goals the need to improve regional air navigation services. This is an area, which we have aggressively pursued. I am pleased to note that recently in Montreal; we celebrated the implementation of the Cape to Cairo The Very Small Aperture Terminal (VSAT) communications network.

As air navigation service providers in the Southern Africa and North East Africa region, we have developed a solution for our communication needs based on the unique requirements and challenges of Africa.

The Southern African Development Community (SADC) VSAT and the NAFISAT networks are an embodiment of our efforts to create safer skies. Our SADC technology network connects the air traffic control centres in the 13 SADC states and seven sites in West Africa. And allows for the transmission of voice and data communication via satellite network thus providing the required voice and data circuits where there were previously limited or no services.

We have therefore been able to solve our challenges through regional co-operation. Our efforts will continue in ensuring that we have the most appropriate navigational aids thus assuring all that we indeed do have safe skies in which aircraft such as the Dreamliner may fly through.

We remain steadfast in operating a safe aviation environment. And Nepad has within its list of projects the establishment of Upper Airspace Control Centres, the establishment of Joint Safety Oversight Units. This initiatives supported by both local and international industry stakeholders will ensure that we achieve and maintain a safer aviation environment.

Our trading relationship with the United States of America has also been very strong. I am aware of the impending need of aircraft manufacturers for titanium. South Africa has the second largest raw material deposit of titanium in the world, and this supported by good infrastructure, a skilled workforce and good aerospace manufacturing capacities, allows us an opportunity for a new partnership with aircraft manufacturers such as Boeing.

I believe that we have the ideal opportunity to craft a new mutually beneficial partnership in aviation. Aircraft built with the most advance materials, best operating crews, well-managed navigational systems, and good safety oversight administration will ensure that we are all safe and secure, when we cross the continent and the Atlantic Ocean.

I thank you.

Issued by: Department of Transport
15 November 2007