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Airbus Sees Africa Demand for 1,000 Jets Over Next 20 Years

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  • Airbus Sees Africa Demand for 1,000 Jets Over Next 20 Years

Airbus SE expects African operators to buy about 990 new planes over the next two decades to meet increasing demand for passenger and freight services on the continent.

While making up only 3 percent of overall global demand, the planes will more than double the number of such aircraft on the continent, according to Airbus’ vice president for sales in Africa and India, Hadi Akoum. The company forecasts passenger traffic in Africa increasing by 5.6 percent a year over the next two decades, higher than the 4 percent global average.

“We put Africa’s growth above the rest of the world and we do believe that there is a huge potential,” Akoum said in an interview in the Rwandan capital, Kigali, on Wednesday. “We are working with almost every country and airline that has capacity to operate aircraft beyond 100 seats.”

Underpinned by a growing middle class, the number of air passengers in Africa is forecast to increase by almost two thirds to 303 million by 2035, according to the International Air Transport Association. The top 10 fastest-growing markets in percentage terms are expected to be African nations including Sierra Leone, Mali, Rwanda, Togo, Uganda and Zambia, each doubling in size every decade, the trade body said on its website.

Of the 990 new Airbus aircraft, 760 will be single-aisle jetliners in the 120-200 seat category, while 230 will be wide-body twin-engine medium- and long-haul airliners, according to the company’s projections. There is also room in the market for 10 larger liners, such as A380s, it said.

The anticipated orders present aircraft maintenance and repair business worth about $76 billion, and a requirement for as many as 21,700 new pilots, according to Airbus.

Jet Deliveries

Some of the planes will replace 226 outdated ones, while the rest of the existing fleet will still be in service by 2035, according to Airbus. There are 605 planes with capacity of more than 120 seats on the continent, manufactured by both Airbus and Boeing Co., it said.

Airbus had 228 planes with 32 African operators by the end of January, including 140 single-aisle A320s and three A350XWB wide-body twin-engine jets.

The company expects to deliver two A330s to South African Airways this year and is in talks with Ethiopia Airlines for more A350-1000s, Akoum said, without giving details as the specifics are still confidential. The airplane maker is also in early-stage discussions with Kenya Airways Ltd., the continent’s third-biggest carrier.

Defunct Ugandan Airlines is in negotiations with both Airbus and Bombardier Inc for leases on six planes, the Nairobi-based East African newspaper reported in December, citing Ugandan Minister of State for Transport Aggrey Bagiire.

Last year, Airbus delivered 688 new aircraft globally valued at $101.3 billion and booked orders for another 949, estimated at $132.7 billion.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns

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Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.

Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.

The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.

This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.

While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.

Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.

Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.

Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.

Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.

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Crude Oil

Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm

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Dangote Refinery

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.

Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.

The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.

However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.

Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.

He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.

Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.

The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.

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Energy

NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade

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Mele Kyari - Investors King

The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.

Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.

Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.

In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.

Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.

He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.

Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.

In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.

Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.

The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.

As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.

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