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The Journal of African Business Issue 7

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Welcome to The Journal of African Business, a unique guide to business and investment in Africa. Since the inaugural issue was published as an annual in 2020, the quarterly format has been adopted, giving our team more opportunities to bring to readers up-to-date information and opinions and offer our clients increased exposure at specific times of the year. We cover a broad range of topics, ranging from energy and mining to tourism and skills development. A wide-ranging interview in this issue with a visionary entrepreneur gives a welcome insight into how the private sector can be deployed to solve issues that go to the heart of social problems, in this instance, affordable housing. Related to urban development is the article that lays out the vision of one of the continent’s great cities to create a smarter city. Special Economic Zones have been in Africa since 1970 but there has been a great deal of new thinking about the role that these zones can play in bolstering economic growth and promoting exports. An article explores the chief motivations for the growth of this particular policy intervention and notes that more zones and organisations representing these zones are aiming to work together, not only on a continental level but through the United Nations as well. Executive education can boost the earnings of graduates of Master of Business Administration courses, but can those post-graduate programmes also respond to and equip students with the tools to tackle African challenges? The importance of being properly covered by insurance for extreme weather conditions is the subject of two case studies by the African Risk Capacity Limited, a financial affiliate of the African Risk Capacity Group, a specialised agency of the African Union. And much more... Global African Network is a proudly African company which has been producing region-specific business and investment guides since 2004.


CAPE TOWN AIR ACCESS, POWERED BY WESGRO, DRIVES AFRICAN ROUTE DEVELOPMENT The AviaDev Africa 2023 event confirmed that Cape Town’s links to the rest of Africa are growing rapidly. Cape Town Air Access (CTAA) is one of the most successful private-public partnerships that has been seen in aviation. Since its inception in 2015, the CTAA project has been instrumental in transforming Cape Town’s aviation landscape ‒ driving economic growth, bolstering tourism and increasing air-cargo capacity to and from the Cape. Notably, the international terminal achieved a significant milestone in February 2023, with passenger performance recording a complete recovery when compared to February 2020, welcoming over 258 000 passengers. This positive trend continued into the first quarter of 2023, with April recording a 39% year-on-year growth when compared to the same period in 2022. Furthermore, through its dedication to improving Cape Town’s African route network, the project has welcomed six additional African carriers to Cape Town’s international route network, contributing to the province’s connectivity to 11 countries and 15 destinations across Africa. African aviation has proven to be resilient, with two-way passengers between Cape Town and the rest of Africa growing by 80% year-on-year from 2021 to 2022. Namibia, Zimbabwe and Botswana were the top three countries for twoway passengers in 2022 – with Lagos (Nigeria) and Lusaka (Zambia) being the top unserved African destinations for the province. The AviaDev Africa 2023 event held in Nairobi provided an ideal opportunity to reflect on trends in African aviation, and for CTAA to showcase its model of growing routes to a destination. Providing an invaluable platform to showcase Cape Town and the Western Cape’s positive aviation recovery and subsequent growth, the event programme provided meaningful engagement with the African aviation landscape, providing an opportunity to identify new direct routes and expand on existing frequencies. Gathering over 400 attendees from leading airlines, airports, tourism boards and other aviation professionals, the event fosters a conducive environment for strategic discussions and negotiations. Furthermore, AviaDev affords CTAA, an initiative powered by Wesgro, the opportunity to highlight its accomplishments and share best practices with industry peers from across the continent. “Our presence at AviaDev Africa 2023 underscores the project’s commitment to fostering sustainable air connectivity to Cape Town and the wider African continent,” said Wrenelle Stander, the spokesperson for Cape Town Air Access. 26

AVIATION “Together with our project partners, Cape Town Air Access has consistently demonstrated its ability to achieve results. For the IATA Winter Season (November ‒ March 2022/23), the project welcomed four direct new routes and three new airlines to Cape Town International Airport, resulting in a capacity increase of 200 000 two-way seats over the period,” added Stander. Western Cape Minister of Finance and Economic Opportunities, Mireille Wenger, said: “More routes and increased frequencies has a direct impact on the province’s economy. “The international terminal at Cape Town International Airport saw a 90% year-on-year growth for the first four months of 2023, with over one-million passengers passing through the terminal. Beyond the tourism boost, one-million passengers holds the promise of a potential investment, a potential trade deal being struck, a potential event being hosted in the province, and a potential film crew returning to shoot their next blockbuster. Air connectivity is vital in sustaining a healthy economy and creating jobs.” “AviaDev is the ideal opportunity to expand Cape Town’s reach into the rest of Africa. The City recognises aviation as a key pillar for our mission to realise a tourism-related job in every household in the metro. Cape Town International Airport witnessed a fantastic rebound in air travellers in the past year and through our campaigns and work with the Air Access initiative, we look set for even better growth in the months ahead,” commented Mayoral Committee Member for Economic Growth at the City of Cape Town, Alderman James Vos. “The growing air connectivity into Cape Town is providing immeasurable stimulus to our city and region, at the time when the country needs to attract business investment and also grow its tourism. This initiative has enormous potential to expand and to deliver greater job creation and economic benefits. The Air Access team are doing a great job unlocking the relationships and networks necessary to turning opportunities into reality for Cape Town,” concluded project partner and CEO of the V&A Waterfront, David Green. Delegates outside the East African School of Aviation. Credit: The Bench AVIADEV AFRICA 2023 The AviaDev Africa 2023 conference attracted 381 delegates and 41 airlines to Nairobi. Airports, airlines, suppliers and tourism authorities were represented. A one-day event was held before the conference itself was launched. AviaDev Real Estate was open to parties interested in helping airports develop their real-estate proposition: real-estate advisors, financial institutions, airport architects or designers, consultants, hotel operators, real-estate developers, airport master planners, asset managers and companies involved in cargo and warehousing. It connected the owners and operators of African airports to those with the finance, skills and contacts to develop the land and maximise its revenue potential. The aim is to make the airport industry more resilient to potential disruption, increase the appeal to new carriers and ultimately improve air connectivity across the continent. Among the titles at AviaDev Real Estate was “Unlocking resilience through real estate and air cargo developments in Africa”. The main conference, which was held at the Radisson Blu Hotel, Nairobi Upper Hill, covered a wide range of topics. These included environmental issues and the building of new routes for the African continent and several talks were given on technology. For example, a panel discussion, moderated by Habba Hadijah Kamwesiga, Head of Marketing and Communications at RwandAir, was held on the topic of “Innovating for Success. How technology is driving efficiency, building resilience and improving profitability across the African aviation industry”. Other relevant subjects included sustainability of route development, the principles to be observed in building a strong cargo ecosystem and how an Open Skies policy for Africa can best be achieved. The next AviaDev Africa will be held in Windhoek, Namibia, from 19-21 June 2024. Adapted from an article published by Wesgro. Website: 27

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