GOOD GOVERNANCE IS THE
GOOD GOVERNANCE IS THE KEY TO SECURING FUNDING African airlines wanting to attract investment need stronger governance and leadership, according to Vijay Poonoosamy, Barrister and Partner of Dentons Mauritius. African airlines need better governance and stronger leadership to grow and attract funding. This was the key message from Vijay Poonoosamy, Barrister and Partner at Dentons Mauritius, at the African Aviation Summit held in Johannesburg. Poonoosamy moderated a panel on “Aircraft Fleet Considerations and Legal Perspectives” and participated in the “The Way Forward – Positioning for Growth” closing session. “Our continent’s national leaders must demonstrate their commitment to their respective national interests with integrity and allow government-owned African airlines to be effectively and efficiently run by professionals,” said Poonoosamy. “The national leaders who choose to do so will enable these national airlines and the related government entities in aviation to take off, thus enabling their countries to take off too.” Shahid Sulaiman, Senior Partner, Head of Corporate of Africa at Dentons, added that countries that can create such a conducive environment for their airlines will allow them to have better chances of securing fair and reasonable terms for aircraft and financing, both of which are crucial for providing the intra- and intercontinental air connectivity Africa desperately needs. The 32nd iteration of the summit focused on the challenge of funding airlines in Africa, both existing carriers and startups. International and African financial experts, along with senior officials from leading African airlines, discussed the current situation and sought practical solutions. Embracing good leadership Poonoosamy believes that financial institutions and investors should consider providing funding and support to African airlines, particularly those demonstrating good governance and leadership. “With more companies worldwide embracing ESG (Environmental, Social and Governance) principles and the need to do both well and good, I urge aircraft vendors, lessors and financiers to offer well-managed African airlines as attractive Vijay Poonoosamy, Partner at Dentons Mauritius terms or even better terms than those offered to the well-established and profitable airlines elsewhere,” Poonoosamy said. Sulaiman pointed out the interconnected nature of Africa’s socio-economic status and its aviation sector. “Africa’s socio-economic status is not where it should be and, as a result, African civil aviation is not where it should be either. This is because one impacts the other,” Sulaiman said. “Excellent governance and the right leadership will help deliver safe, secure, viable and sustainable African airlines, which will help African socio-economic growth and which will also help these airlines in return in a virtuous circle,” Sulaiman said. “The growth and sustainability of African airlines hinge on strong leadership and governance,” Poonoosamy concluded. “Government officials should work towards implementing policies that foster strong governance and leadership in the aviation sector. Financial institutions and investors, on the other hand, play a crucial role by providing the necessary funding and support to those airlines demonstrating good governance and leadership. This, in turn, will drive the socioeconomic development that is essential for the continent’s overall progress.” 22
AIRLINE FUNDING United Airlines is one of several international airlines offering new direct routes to African destinations. Adding to its flights out of the US to South Africa and Nigeria, in 2024 Marrakech, Morocco, was added to the schedule. Conference focusses on resilience The Wings of Change Focus Africa Conference held in Johannesburg in July 2024 had as its theme "Towards a More Resilient and Sustainable African Aviation". Organised by the International Air Transport Association (IATA) with South African Airways (SAA) as the host, this was the second edition of the conference. The conference delved into priorities under IATA’s Focus Africa Initiative to strengthen aviation’s contribution to the continent’s economic and social development, along with improving connectivity, safety and reliability for passengers and shippers. Kamil Alawadhi, IATA’s Regional Vice-President for Africa and the Middle East, explained how the conference could help to focus attention on key issues. He said, "Africa's aviation market holds immense untapped potential, with expectations for traffic to double in the next 15 years. The Focus Africa Initiative has identified key priorities that, if addressed collaboratively and effectively, will bolster Africa’s aviation industry and enhance its socio-economic impact. A year into the Focus Africa Initiative, we have seen progress in areas such as safety, but there is still a long way to go. This year’s IATA’s Wings of Change Focus Africa Conference builds on this progress by addressing critical areas such as safety, security, sustainability, economic development and the overall resilience of the industry." The keynote opening address was presented by Professor Malesela John Lamola, Chief Executive Officer of South African Airways. In his speech he reiterated SAA’s support for the creation of a Single African Air Transport Market (SAATM), a project of the AU’s Agenda 2063 which to date has 34 countries signed up. 23 Shahid Sulaiman, Senior Partner, Dentons.
