The East African Business Council (EABC) has urged the governments of the partner countries of the East African Community to have a single air transport service agreement.
Mr. John Bosco Kalisa, CEO of EABC in Arusha, said: “The EABC should consider replacing the existing Bilateral Air Service Agreements (BASAs) with a single Air Service Agreement EAC to reduce the cost of air transport in the region.” Thursday.
The CEO of EABC spoke at the ‘Validation Webinar’, which EABC has partnered with Trademark East Africa (TMEA) to validate the study on the liberalization of air transport services in the East African Community.
Mr. Kalisa appealed to the EAC presidents to agree to give preferential and national treatment to EAC airlines as foreign airlines are currently receiving more favorable treatment than EAC airlines in some countries.
He said the region may start giving preferential and national treatment to EAC cargo planes to boost exports.
He explained that the AAC partner countries should fast track the process of finalization and implementation of the EAC regulations on the liberalization of air transport services in line with the EAC Common Market Protocol.
E.A.C. He also said that among the challenges facing the air transport sector are limited infrastructure, lack of standardized regulations and high cost of air transport.
In her opening remarks, TMEA’s Head of Public-Private Dialogue and Export Capacity, Mrs Paven Mbeda, reiterated her commitment to partnering with the public and private sectors to facilitate trade in the ACC and the continent.
The Kingdom of the Netherlands noted that the public-private dialogue program is funded and air transport costs contribute to the EAC’s gross domestic product and foreign reserves through tourism and horticultural production.
According to the East African Community Secretariat Chief Economist – Investment and Private Sector Promotion, Mr. Charles Omusana, the liberalization of air transport services is an EAC. It contributes to our strong desire to grow business.
The study on the liberalization of air transport services analyzes the cost drivers and regulations of taxes, duties and other related charges and provides recommendations to reduce the cost of air transport in the EAC.
Preliminary findings of ACC’s study on air transport liberalization show that a percentage increase in passenger traffic increases tourism receipts by 0.1 percent.
Similarly, the increase in the percentage of freight departures will lead to a 0.2 percent increase in tourism receipts. Limited exemptions for air transport account for high airfares and visa restrictions restricting the movement of non-residents to the EAC region.
Preliminary findings also show that cargo volumes in the EAC region have slowed significantly due to the high cost of air freight, coupled with some airlines’ schedule delays and inadequate infrastructure such as cold rooms and route restrictions, along with lengthy bureaucracy to access new markets.
On the other hand, the findings show that a percentage increase in air passenger traffic leads to a 0.05 percent increase in GDP.
This was achieved through increased trade, tourism, investment income, manufacturing and employment.
Air transport liberalization will create an additional 46,320 jobs and $202.1 million in annual GDP in EAC countries.
The webinar on the ACC Air Transport Liberalization Study was attended by more than 70 stakeholders who confirmed the study findings.