1 Growing’s Africa’s Lion Share of TradeSession 2 2nd ICAO Meeting on Air Cargo Development in Africa June 27th

2 Perishables, Oil & Gas, Mining, GarmetsPerishables, Oil & Gas, Mining, Garments – Manufacturing Moving 12% of the world's people - less than 1 per cent of the global air service market. (World Bank) Perishables, Oil & Gas, Mining, Garmets Traffic from Kenya - 90% composed of fresh produce, flowers and fish Traffic to - electronic items, equipment spare parts, garments 55 % of South Africa’s subtropical fruit was exported to the EU last year. (Source: PPECB) Ivory Coast, Ghana and Nigeria accounting for 80% of West Africa's exports to the EU. (Source: EU Trade Commission) The West Largest Trading Partner. 12% of the world's people - less than 1 per cent of the global air service market. (World Bank) China's trade with Africa recorded $10 billion in 2000. Last year, the figure grew to $220 billion. (Source: China Daily) South Africa – Most comes from China, Germany and India Exports used to be dominated by fresh produce and fish. Now 60% is fresh produce and 40% is manufactured goods.” South Africa including avocados, mangoes, pineapples, and passion fruit,

3 Carriers Moving In Out of Africa IAG Cargo per week to South Africa from both the London and Madrid. Air France launched a flight between Accra and Paris Emirates serves 24 destinations in Africa, 5 are specifically for cargo In Africa 1970s -1980s - 36 African airlines (26 had intercontinental flights). Today, 12 African airlines with intercontinental operations. East Africa - Kenya Airways and JamboJet flying to 12 routes out of the 22. Bujumbura to Dar es Salaam – 6 hours to connect via Nairobi. At times 3 connections 13 hours IAG Cargo offering a weekly lift of up to 440 tonnes 2016, freight-tonne-kilometers flown by Africa-based carriers were still flat with 2015 – IATA 1,400 km Bujumbura to Dar es Salaam.

4 Opportunity - Land Locked18% is with other African countries (source: WTO) Intra-African trade costs are 50% with East Asia 70% Europe Trade Within Continent 52% in Asia and North America moving goods by road means border post delays and deteriorating road infrastructure, which adds to supply chain costs. Dube Tradeport is a place to generate, process and transport cargo and give access to international markets. 16 out of 54 Countries Goods bound for Uganda, Rwanda, and Burundi Average of five days more (25 versus 20 days) in Dar Es Salaam port than domestically bound goods. (World Bank)

5 Support on the Way  Among them is Swissport’s new state-of-the-art cargo terminal at Accra‘s Kotoka International Airport, comprising 10,000 square meters to cater for temperature sensitive products. At Addis Ababa’s Bole International the infrastructure is upgraded by Ethiopian Cargo’s new freight terminal that will be operational in April, offering 1.2 million tons of annual throughput capacity. Source: PwC

6 The Mombasa-Nairobi line is the first phase of a 840km (525 mile) line linking the port city of Mombasa to the western border town of Malaba. Why no connection - airports and railways were built and developed independently, the idea of designing and constructing mixed rail-to-air hubs has simply not happened on any meaningful scale. first standard-gauge international railway between Ethiopia’s capital Addis Ababa and the Red Sea port of Djibouti. three days by road – down to 12 hours, reducing costs by a third. It took three-and-a-half years to build, using Chinese track-laying technology The line is supposed to eventually connect land-locked South Sudan, eastern Democratic Republic of Congo, Rwanda, Burundi and Ethiopia to the Indian Ocean Cuts the journey-time from Mombasa to Nairobi to four-and-a-half hours, compared to nine hours by bus or 12 hours on the previous railway Rail-air multi-modal freight systems harbour great potential in terms of sustainability, cost and efficiency.

7 Airport Infrastructure – Needs to Follow SuitNigeria Abuja Airport 30% to 40% of all freight is transported with intermodal transportation

8 Advancements Are Being MadeO. R. Tambo International Airport Processed tons was about 10% down on the preceding year Cargo Facilities - Already operating at close to capacity. “Airports Company needs to hear more from air cargo stakeholders about the particular kind of infrastructure” - Bongiwe Pityi – GM O.R Tambo International Airport  Among them is Swissport’s new state-of-the-art cargo terminal at Accra‘s Kotoka International Airport, comprising 10,000 square meters to cater for temperature sensitive products. At Addis Ababa’s Bole International the infrastructure is upgraded by Ethiopian Cargo’s new freight terminal that will be operational in April, offering 1.2 million tons of annual throughput capacity.

9 By 2035, Africa’s labour force will be larger than China’s - PwCAfrica’s population is expected to more than double from 1.1 billion to 2.4 billion by 2050, the biggest increase of any continent. Its people are the youngest in the world, with a median age of just 19.4 years. (EY Africa Attractiveness Survey) By 2035, Africa’s labour force will be larger than China’s - PwC

10 Are we missing training?

11 Countries benefiting from a TOT course1. FIATA Foundation Since its inception in 2001, 12 Train-the-Trainer courses have been conducted Countries benefiting from a TOT course Year Mongolia - MNFFA 2003 Kenya - KIFWA 2004 Ghana - GIFF 2005 Pakistan - PIFFA 2006 Mexico - AMACARGA 2008 Syria - SIFFA 2009 Ethiopia - EFFSAA 2010 Pakistan – PIFFA ( in collaboration with UNCTAD/Worldbank ) 2011 Tanzania – TAFFA 2012 Chile – ALOG Zimbabwe - SFAAZ 2015 Morocco - AFFM 2016 241 trainers have been trained

12 2. Advisory Body Vocational TrainingAfricans need visas to travel to 55% of other African countries and can only get visas on arrival in 25% of the those countries. 23 Associations and 1300 members. Private sector - Continental Task Force (RECs, UNECA and AfDB) 15,000 Certified Individuals and counting……..

13 3. FIATA Logistics AcademyExamples of what FLA holds itself accountable for through 9 projects offering around 200 courses TALENT CONNECT BOOK RECOMMENDATIONS AIR CARGO COURSE TLF REFRESHER COURSE FIATA Logistics Academy |

14 Integration through technology

15 There are now nearly 900 million mobile phones in operation in AfricaThere are now nearly 900 million mobile phones in operation in Africa. There is now mobile broadband networks in many rural areas of the continent. (PwC Africa Mega Trentds)

16 The Leapfrog

17 Thank You

18 ANNEX

19 3 FIATA Training Wings “Building Capacity ” FLA ABVT FoundationCFTA – African Business Council TFTA – UNCTAD Policy Brief – Private sector was not take into consideration. We are usually policy reactors – we react to policy that is already established. We need to be policy creators. And we need a track for private sector input. The UN in New York for examples provides a track for private sector input. SADC – Phase out program of tariff reductions commenced in % of intra regional trade among SADC members attained zero duty.

20 37 of Africa’s 54 countries are sea-facingTraders Using Ports Durban, South Africa More container handling facilities including a second container terminal Kenya, Mombasa Installing new cargo handling equipment at Mombasa and reducing bureaucracy through training programs Lagos, Nigeria Handles trade from neighbouring Benin, Niger and Cameroon.  37 of Africa’s 54 countries are sea-facing Port of Beira, Mozambique The Sena railway line linking Beira with Malawi and the Tete Province is currently being rebuilt

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22 Current Track Direct Track

23 Perishables are King Year-over-year African export volumes of avocados increased by 26 percent in 2015. Citrus experienced 2 percent growth (Source: PPECB) Cited in Tanzania - 40 % of fruits or vegetables harvested are ruined before being loaded aboard a plane. – Poor Infrastructure 12% of the world's people - less than 1 per cent of the global air service market. (World Bank) Freighter business is perishables, and oil and gas – and that’s Africa, so that’s where we deploy them,” said Mr Duyzings.

24 DRC - Reserves of copper, cobalt, diamonds, coltan, and gold.The Potential Agriculture: 60-80% of the workforce employed by the sector in Ghana, Tanzania and Kenya. (PwC) DRC - Reserves of copper, cobalt, diamonds, coltan, and gold. Tanzania - underdeveloped deposits of gold, diamonds, gemstones, industrial minerals, coal, kaolin, tin, gypsum and phosphate Mozambique - potential to be the world’s third-biggest liquefied natural gas exporter, after Qatar and Australia