Ethiopian Airlines CEO on unlocking Africa’s single aviation market

As Africa continues to progress towards deeper economic integration, aviation plays a crucial role in connecting markets and driving trade across the continent. Ethiopian Airlines, the largest carrier in Africa, has been leading the way in expanding regional connectivity and supporting the vision of a Single African Air Transport Market (SAATM). Despite the enormous potential of the African aviation market, policy bottlenecks and fragmented regulations have slowed down the progress. In an exclusive interview with CNBC Africa's Akinkumi Obakeye, the CEO of Ethiopian Airlines, Mesfin Tasew Bekele, shared insights on the airline's mission to connect the continent and the challenges they face in achieving this goal. Ethiopian Airlines has made it a core mission to contribute to the economic development of Africa since its inception. Over the years, the airline has expanded its network across the continent, currently connecting 61 cities in 40 countries in Africa. Bekele highlighted the airline's plans to further enhance this network by cooperating with other African governments and investors to establish airlines in different regions of Africa, aiming to provide both domestic and regional connectivity. The CEO emphasized the importance of collaboration in achieving a unified market in the aviation industry. Bekele also shed light on the significance of partnerships, not only with the private sector but also with African governments, in driving the growth of the continent. While ownership of airlines by governments often raises concerns about efficiency, Ethiopian Airlines has managed to operate successfully as a state-owned entity with a private company operational model. By bringing professional management into airline operations through partnerships with African governments, the airline aims to ensure success and efficiency. When it comes to investment in the aviation sector, Bekele highlighted the strong relationship Ethiopian Airlines has with financing institutions and banks. The airline has consistently secured finance for its aircraft purchases, demonstrating excellent creditworthiness and the ability to repay loans. Bekele emphasized the importance of developing solid projects, demonstrating their feasibility, and showcasing the potential for return on investment to attract financing from various sources, including African financial institutions. Regulations present a significant challenge for the aviation industry, both globally and on the African continent. Bekele pointed out that while aviation regulations are essential for safety and compliance, other government policies, such as tax issues and traffic rights restrictions, hinder the efficiency of airlines operating in Africa. He highlighted the need for African governments to reconsider their tax policies and prioritize free movement within the continent to enhance connectivity. In conclusion, Bekele expressed optimism about forums like the African Prosperity Network (APN) bringing together government officials and industry leaders to collaborate on overcoming challenges and advancing the single African market agenda. He emphasized the importance of face-to-face discussions to exchange ideas, identify problems, and explore solutions that can be easily implemented. Bekele believes that such forums will play a crucial role in driving African efforts towards creating a unified market for the aviation industry, ultimately benefiting the continent as a whole.