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Africa ready to open new chapter in air cargo as it did 30 years ago with cut flowers

Africa, always the rear guard of global economic development, is now within range of making substantial progress against bigger rivals in the highly competitive world of air freight.

First, there is a need to be exploited. According to Stanford University conservative economist Thomas Sowell, the fundamental problem with Africa, particularly sub-Saharan Africa, are its lack of useful rivers to carry trade. There is the much cited River Nile, of course, but beyond that, there is scant little of note.

The Congo River looks good on the map, but because so much of it is unnavigable because of rapids, cataracts and waterfalls makes it far less useful than it would otherwise be. Add to that, the disease-spreading tsetse fly made pack animals useless while the big cats made meals of railway workers laying track between Dar es Salaam and Nairobi.

But much like bombed-out postwar Germany and Japan, Africa can take advantage of its evident disadvantages of primitive or non-existent legacy infrastructure and procedures to move swiftly ahead of its rivals in air freight.

Without fussing over what can be discarded without fear or favour and what must be retained, Africans can invest in the latest digital infrastructure, such as high-speed internet and secure data storage.

With fewer vested interests at stake there is likely to be few objections to changes that involve ripping out the old and replacing it with new technology.

Harmonising regulations across countries can simplify the implementation of digital solutions and facilitate cross-border trade. Regional organisations, such as the African Union and the African Civil Aviation Commission, can play a pivotal role in promoting regulatory alignment and standards.

At the core of the reforms is digitising air cargo to overcome problems and enhance efficiency. By adopting electronic air waybills, integrating advanced tracking systems, exploring blockchain technology, developing unified digital platforms, and improving customs processes, positive change can be achieved.

But such a transformation will require public-private partnerships, capacity building, infrastructure investment, and regulatory harmonisation. With concerted effort and collaboration, Africa can leverage digitisation to unlock the full potential of its air cargo industry, driving economic growth and development across the continent.

Anxious to get this dream to the takeoff stage, Chicago aviation software firm Awery is selling a top to bottom solution called "enterprise resource planning".

Awery accepts that external factors have played a role in accelerating the adoption of air cargo solutions in Africa, as an unexpected increase in air freight demand has boosted the uptake of the technology.

“The issues in the Red Sea, particularly with the Houthi rebels affecting the Suez Canal, have shifted a significant amount of freight from ocean to air,” said Awery commercial officer Tristan Koch.

However, despite the evident benefits, the transition to digital solutions in the air cargo industry has faced some resistance. “Globally, less than 10 per cent of air cargo bookings are made online,” he said. “Many still prefer emails or phone calls.”

Awery believes its cargo booking platform stands out due to its innovative features, particularly the eMagic tool. “This tool extracts data from emails and converts it into digital quotes, significantly reducing the time and effort required for data entry,” said Anna Balan, Head of CargoBooking, a platform powered by Awery, explained.

But all this requires collaboration between the public and private sectors. Governments, industry associations, and technology providers should work together to develop and implement digital solutions. Public-private partnerships can facilitate investment, provide technical expertise, and ensure that digital initiatives are aligned with regulatory frameworks.

And to do that, one must be equipped with the necessary skills and knowledge. Capacity-building programmes and training initiatives can help industry professionals understand deploy new technologies.

Investing in digital infrastructure, such as high-speed internet and secure data storage, is essential for supporting the implementation of advanced technologies. Governments and private investors should prioritise infrastructure development to create a conducive environment for digitisation.

Harmonising regulations across countries can simplify the implementation of digital solutions and facilitate cross-border trade. Regional organisations, such as the African Union and the African Civil Aviation Commission, can play a pivotal role in promoting regulatory alignment and standards.

Digital solutions can also be applied to customs and regulatory processes to reduce delays and improve compliance. Implementing electronic customs declarations, automated risk assessment systems, and digital payment methods can accelerate processing times and reduce the administrative burden. Collaborative efforts between governments, customs authorities, and the private sector are crucial for successful implementation.

Digitising air cargo in Africa presents a significant opportunity to overcome current challenges and enhance the efficiency of the sector. By adopting electronic air waybills, integrating advanced tracking systems, exploring blockchain technology, developing unified digital platforms, and improving customs processes, stakeholders can drive positive change.

However, successful implementation requires strategic approaches, including public-private partnerships, capacity building, infrastructure investment, and regulatory harmonisation. With concerted effort and collaboration, Africa can leverage digitisation to unlock the full potential of its air cargo industry, driving economic growth and development across the continent.

Everyone agrees that it is foolish to preserve the present state of play when it is cheaper - often the only way - to have goods flown from Africa to Europe and then flown back again to preserve the bureaucratic niceties that require compliance with one rule or another that too much of the outside world seemed nonsensical, and in many cases could be waved away with a discreet "facilitation fee" - aka a bribe.

Quite apart from the fact that that is an evil that should be eradicated, it is useful to recall that disapproving courts can, and have, acted extra-territorially caring not a jot that the offences occurred beyond their writ range if it affected anyone of their nationals, as defunct Swiss forwarder Panalpina  and Air New Zealand learned to their cost.

Better to reflect on the glories of the past 30 years ago when East African horticulturalists developed the airborne European cut flower trade, that was one of the few economic bright spots in Africa at the time. Only the environmentalists and their bureaucratic allies came to block such today, as they may indeed come again to thwart progress tomorrow.

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Africa has what it takes to triumph in the world of air freight, according to the author. Do you think African aviation can avail itself of opportunities to be all that it can be?

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Nippon Express (HK) Co., Ltd.
Visible & Strategic Logistics
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