Boeing Forecasts Positive Outlook for Africa Aviation Market
From Left: AmCham Kenya Vice-President Mr. Reece Jenkins, Boeing International President Mr. Marc Allen, AmCham Kenya CEO Ms. Ferial Nathoo and AmCham President Mr. Peter Njonjo during the AmCham-Boeing Luncheon at Villa Rosa Kempinski.
22nd October, 2015
Boeing sees a bright future for aerospace in Africa, projecting that air travel in the continent will grow by 6 percent annual over the next 20 years leading to a demand of more than 1,200 new airplanes by 2034.
Addressing members of the Kenya American Chamber of Commerce, Boeing International President Marc Allen said the growth will be driven by new demand, which will lead to new airplanes coming to Africa that have next-generation technology and are significantly more efficient.
“This continent is on the move,” Allen said. “It is on the move economically and politically.The trends are pointing in the right direction. As economies and governments mature, aerospace will expand.”
The forecast for Africa aviation growth is part of the Boeing Current Market Outlook (CMO). The CMO is the longest running, complete jet forecast which shapes Boeing’s product strategy as well as providing Africa carriers with long term data to be used in its fleet planning process. Highlights from the latest CMO include:
- Growth of Africa’s economies has accelerated resulting in gross domestic product (GDP) increase of 4% annually over the past decade.
- Traffic to, from, and within Africa is projected to grow about 6% annually for the next 20 years, driven by the economic outlook, increasing trade links, and the growing middle class.
- Africa’s fleet of commercial airplanes will nearly double in size by 2034.
- Africa will require nearly 1,200 new airplanes over the next 20 years.
- The majority of airplanes for the African market will be single-aisle planes such as the Boeing 737 and Airbus A320 families.
- A little more than 20 percent will be for larger, twin-aisle airplanes such as the 787, 777 and 747 that connect Africa to the world.
- The bulk of the increase, more than 900 airplanes, will be in response to market demand for additional airplanes which reflects well on Africa’s economic prospects for the future.
“Indicators show that GDP will continue to grow by almost 5 percent annually over the next decade,” said Allen. “Africa will need this robust growth because it has the youngest population of any continent and 11 million people are expected to join the job market annually for the next 10 years.”
Ferial Nathoo, Chief Executive Officer, American Chamber of Commerce, Kenya said that while the country was already firmly established as a regional heavyweight, this latest initiative showed that the country recognised the importance of responding quickly to the needs of the private sector.
“While investors will already be aware of Kenya’s advantages, which include sound, long-term fundamentals, the country’s ease of doing business gives it an added edge,” she said. I am delighted that AmCham will be involved in sharing what this next wave of change means for business in Africa.”
Celebrating his first visit to Kenya, Allen also outlined Boeing’s strong links with Africa, stretching back over 60 years and he spoke of Boeing’s many social, developmental and educational projects implemented across the continent.
“As a global business, Boeing is profoundly aware of its standing as a corporate citizen in many nations,” Allen said. “Working with in-country partners, we have invested millions of dollars in Africa over the last five years to improve health and human services as well as educational opportunities.”