The United Arab Emirates has indicated an interest in investing in Akwa Ibom’s aviation sector, a development seen as the next big thing in Nigeria’s aviation industry and a consequent boost to Africa’s development.
Reports indicate that the decision of the Arab country to invest in Africa’s aviation industry was the discovery of the continent as revenue potential. Akwa Ibom came into the spotlight at the just concluded 2020 Global Investment in Aviation Summit held in the UAE to discuss issues in the aviation industry.
State Governor Udom Emmanuel presented to the summit, the ample investment opportunities in the state to which investors from the UAE indicated an interest in the completion and running of the maintenance, repair, and overhaul (MRO) of the facility at the Victor Attah International Airport.
“We have created an investor-friendly environment. Our home carrier, Ibom Air, is receiving attention globally,” said Governor Udom, who hinted that his administration sees aviation as a strategic income stream and a means of diversifying the state’s economy.
Highlighting what this could mean for the state, he said that the investment would create jobs for millions and boost the state’s Internally Generated Revenue (IGR), among other things.
Africa’s aviation industry is seen as a potential for development and revenue generation, particularly for Middle East carriers. Fellow regional airlines, Qatar Airways, also recently expressed interest in a major expansion in Africa, strengthening its presence in the market.
The Qatari carrier is in talks to buy a 49 percent stake in Rwanda’snational carrier, RwandAir. Qatar Airways already owns stakes in British Airways parent company, International Airlines Group, China Southern, Cathay Pacific, and LATAM. Last December, Qatar Airways agreed to take a 60 percent stake in a new airport in Rwanda.
RwandAir has been expanding over the past decade due to financial injections from the government, many of which are from external loans like the Eurobond, according to The EastAfrican.However, it is still making losses.
A successful acquisition by Qatar would improve Rwanda’s aviation relationship with the Gulf country, which has continued to develop since Qatar Airways launched daily flights to Kigali in 2012.
Similarly, a stake in an African airline would widen Qatar Airways’ reach in one of the world’s fastest-growing aviation regions, and potentially help it bypass restrictions imposed on it by some Arab states
Growth recorded in Africa’s aviation industry over the years is also evident in Ethiopian Airlines, which has maintained its position as the most successful airline on the continent due to its strategic management, early alliance with global technical partners, Trans World Airlines (TWA) and more interestingly, the growing rise of Ethiopia as a new holiday destination to foreigners.
In a similar fashion, Nigeria’s airport expansion in major cities has also attracted international visitors to the country. Asaba International Airport received the license to operate as an international airport in 2015 following a swift renovation of the facility by the state government.
Generally, the aviation investment and partnership in Africa will contribute immensely to the development and the continent’s economies.
By Ahmed Iyanda
