American commercial aircraft manufacturer Boeing, during its 20-year growth forecast, said that it sees massive opportunity in Africa. It valued the market at about $400 billion. In a statement that was issued on October 21, Boeing said that Africa’s commercial airline fleet will grow to exceed 1,560 planes in the next 20 years.
The single-aisle aircraft is expected to represent 70% of all the new deliveries. Boeing is projecting that African airlines will require 1,030 new planes by 2040 and values the price of the new planes at $160 billion. Adding onto that, Boeing says that the maintenance, repairs, and other aftermarket services will be worth an additional $235 billion.
Boeing Says African Market Will Record A 3% Annual Growth Rate
During Boeing’s 2021 Commercial Market Outlook (CMO), the company’s long-term assessment of Africa indicates growth connected to Africa’s forecasted 3% annual economic growth in the next 20 years. The Single African Air Transport Market and African Continental Free Trade Area initiatives are expected to stimulate air travel, trade, and economic cooperation that will result in significant growth.
Boeing also said that the continent’s working and middle-class population will double in the coming 20 years resulting in an uptick in demand for air travel.
While speaking about the different opportunities that Boeing sees in Africa, Randy Heisey, the planemaker’s managing director of Commercial Marketing for the Middle East and Africa, said:
“Africa has healthy opportunities to expand travel and tourism, coinciding with increasing urbanization and rising incomes. African carriers are well-positioned to support inter-regional traffic growth and capture market share by offering services that efficiently connect passengers and enable commerce within the continent.”
Passenger And Air Freight Will Grow By 5.4% Per Year
In the 2021 Africa CMO Boeing projects the following for the African market leading up to 2040:
- African-based airlines are expected to increase their fleets by 3.6% per year to accommodate a surge in passenger and cargo traffic that they expect will be nearly 5.4% annually. This figure represents the third-biggest regional growth rate in the entire world.
- Accounting for over 70% of all the new commercial aircraft deliveries in Africa will be single-aisle planes that will help in supporting domestic and regional growth. Adding onto the 740 single-aisle aircraft that Boeing projects, the African carriers will need another 250 new widebody passenger and cargo planes. Based on the Boeing report, African airlines will need planes to help in supporting long-haul routes and air freight growth.
- Boeing also projects that 80% of all the new deliveries will serve fleet growth while the remaining 20% will replace some of the older planes with more fuel-efficient models like the 737 MAX, 777X, and the 787 Dreamliner.
- About the aviation personnel, Boeing says that African airlines will require 24,000 cabin crew, 20,000 technicians, and 19,000 new pilots.
- According to Boeing, service opportunities like repair, manufacturing, and supply chain are valued at about $235 billion.
Africa Will Recover Majorly From The Pandemic
The pandemic hurt African economies severely and mostly in nations that are majorly reliant on tourism. Notably, it was felt in North and East Africa, where the governments imposed stringent measures to stop the spread of the virus.
Unlike most of the other nations globally, the vaccine rollout in many African countries has been quite slow. Nonetheless, the steep surge in commodity prices is anticipated to help African countries speed up the vaccine process. they will have the much-required additional revenue to pay for vaccines and their delivery.
As nations return to normal, the upside mobility of the working population and the desire for air travel will make Africa a majorly lucrative market for Boeing.
