Connect with us

Investment

IATA to Africa: Invest in Airport Infrastructure

Published

on

iata
  • IATA to Africa: Invest in Airport Infrastructure

The International Air Transport Association (IATA) has advised African governments to invest in airport infrastructure.

Such investment, IATA said, would ensure improvement in air safety.

Besides, focusing on airport infrastructure, the global airlines regulator also urged African governments to consider committing more resources to training of technical aviation personnel to boost the quality of industry expertise and education.

IATA said investment in human capital development was neccessary for the growth and development of air transportation in Africa.

Its Regional Vice President, Africa and Middle East, Muhammad Ali Albakri, made this known in an interview with The Nation at the weekend in Lagos.

He said air transport could grow in Africa, if governments plough revenues accruing from taxes and levies into expanding operational facilities to enable airline operate safely and profitably.

Albakri said the global body will continue to engageAfrican governments on ways to improve civil aviation regulation,promote safety and security as well as design measures that will stimulate the growth of air transportation.

The global airlines regulator, however, canvassed the sharing of security information among African countries to facilitate the movement of cargo and people across transnational borders.

He said connectivity within African countries still remains a major hurdle for many countries because of failure of African governments to liberalise their airspace.

Liberalising the African airspace, Albakri said, will make it easy for more carriers to fly into major capitals without bilateral restrictions.

Regrettably, Albakri said the Single African Sky Agreement reached by many countries many years was yet to take off, because some of them were yet to realise the benefits a liberalised airspace could bring to their economies.

He said though Nigeria has taken some steps to fix its aviator sector, a lot still needs to be done.

Albakri said: “Air transport in Nigeria supports more than 650,800 jobs, including tourism-related employment, and contributing $8.2 billion to the country‘s Gross Domestic Product (GDP).

“ Over the next 10 years, passenger volumes are forecast to grow more than seven per cent yearly, exceeding the global average by a healthy margin.

“For Nigeria, this means an additional 7.9 million passengers that will take to the sky every year, creating significant opportunity to accelerate economic growth, boost prosperity and support development.”

He said despite significant investment in Nigeria’s aviation sector, the country’s air transport infrastructure still ranks low among African states.

Albakri said though IATA recognises and supports the positive developments by Nigeria on infrastructure, it seeks continued adherence to international best practices and an optimal regulatory environment.

He said: “Now that the country is emerging from recession, aviation can unlock the enormous economic potential that exists within Nigeria. We encourage the government to continue to promote aviation for its role as a catalyst and economic enabler for the country, and to promote stronger connectivity within Nigeria and its neighbouring African countries.

“In addition, now is the time to continue to invest in modern and efficient infrastructure to accommodate the future traffic growth that will occur,” he said.

Albakri said unwarranted or excessive taxation on international air transport will continue to have negative impact on economic and social development.

This, he said, pushed IATA to join forces with industry partners in ensuring that airlines are subjected to fair and efficient taxation measures with respect to their operations, regardless of location.

He said: “IATA will continue to work with the industry to ensure that government authorities adhere to the International Civil Aviation Organisation (ICAO), the Organisation for Economic Cooperation and Development (OECD), and the United Nations taxation principles. In this regard, IATA is actively involved in a range of activities.

“We will ensure that new and existing taxation measures, be they direct or indirect, are fairly applied and adequately consider the economic and social ramifications.

“We will continue to push against measures that result in double taxation, mobilise against taxation measures that unjustly target the industry, where the resulting tax revenues are not reinvested in air transport related services and infrastructure. He also said IATA will continue to play leadership role in influencing airport and airspace planning and development projects worldwide to meet airline requirements for safety, efficiency and functionality.

The IATA chief, however, spared a thought for the multiple entry policy obtainable for African carriers into Nigeria, urging other African carriers to open their skies for accelerated development of the continent.

Albakri said: “We encourage other countries to embrace what Nigeria has done by removing all restrictions that serve as obstacle to opening Africa with the least requirements.

“What we need in Africa is air services to connect the entire continent so that there could be exchange of expertise, knowledge and commerce.”

He said air safety in Africa has improved tremendously with more carriers embracing the International Operations Safety Audit ( IOSA).

Albakri said: “Safety has improved for African carriers due to hard work and focus on international standards, practices and procedures.

“We will continue to urge African countries to focus on airport and airspace management infrastructure improve training documentation, engage in regulatory information sharing to drive safety culture.”

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.

Continue Reading
Comments

Investment

Microsoft to Invest $2.2 Billion in Malaysia’s Digital Infrastructure

Published

on

Microsoft - Investors King

Microsoft Corporation has announced plans to inject $2.2 billion into Malaysia’s digital infrastructure over the next four years.

This investment shows the company’s determination to harness the potential of Southeast Asia’s burgeoning technology market.

During his visit to Kuala Lumpur, Microsoft’s Chief Executive Officer, Satya Nadella, revealed the company’s ambitious agenda, which encompasses the construction of essential infrastructure to support its cloud computing and artificial intelligence (AI) services.

Nadella also outlined plans to provide AI training to 200,000 individuals in Malaysia and collaborate with the government to enhance the nation’s cybersecurity capabilities.

The move comes amidst intensified competition among tech giants, including Alphabet Inc., Amazon.com Inc., and Alibaba Group Holding Ltd., to gain a foothold in Southeast Asia’s rapidly digitizing landscape.

With a population exceeding 650 million people, the region presents a lucrative market for tech companies seeking to expand their operations beyond traditional strongholds like China.

“We are committed to supporting Malaysia’s AI transformation and ensure it benefits all Malaysians,” stated Nadella.

During his visit, Nadella met Prime Minister Anwar Ibrahim and discussed the importance of collaboration between the public and private sectors in driving digital innovation.

Microsoft’s investment not only serves to fortify Malaysia’s technological infrastructure but also aligns with the company’s broader strategy to assert its presence in the Asian market.

Nadella has previously pledged a substantial sum of $7 billion to bolster Microsoft’s services across the region, emphasizing the pivotal role of AI as a catalyst for growth and urging countries to ramp up investment in the technology.

In Malaysia, the southern region of Johor Bahru, linked to Singapore by a causeway, is emerging as a key hub for AI data centers.

The partnership between Nvidia Corp. and local utility YTL Power International Bhd. to establish a $4.3 billion AI data center park in the area underscores the region’s growing significance in the realm of digital infrastructure.

While AI adoption in Southeast Asia is still in its nascent stages, experts predict significant economic benefits with the potential to add approximately $1 trillion to the region’s economy by 2030.

Malaysia is poised to capture a substantial portion of this growth with estimates suggesting a potential windfall of around $115 billion for the country.

Microsoft’s commitment extends beyond Malaysia, as the company announced similar investments during Nadella’s regional tour.

In Indonesia, Microsoft unveiled a $1.7 billion investment plan, while an undisclosed amount was pledged for initiatives in Thailand. Notably, Microsoft intends to invest approximately $1 billion in a new data center in Thailand, as reported by the Bangkok Post.

Continue Reading

Treasury Bills

Investors Flock to Nigerian Treasury Bills, Subscriptions Soar to N23.75 Trillion

Published

on

FG Borrows

Nigeria’s Treasury Bills market has witnessed an unprecedented surge in investor interest with subscriptions soaring to N23.75 trillion in the first four months of 2024.

This increase represents a significant 292% Year-on-Year growth from N6.06 trillion recorded in the same period in 2023.

Treasury Bills, short-term government debt instruments issued by the Central Bank of Nigeria (CBN), have become increasingly attractive to both local and foreign investors.

The double-digit interest rates offered on NTBs have lured investors seeking refuge from the uncertainties of the global economic landscape.

The surge in subscriptions comes amidst Nigeria’s efforts to bridge its budget deficit and manage monetary challenges amidst a scarcity of foreign exchange and double-digit inflation rates.

Investors’ confidence in the CBN’s ability to navigate these challenges has been bolstered by robust subscription rates, indicating a positive outlook for the country’s fiscal stability.

The 2024 Budget of ‘Renewed Hope’, proposed by President Bola Tinubu, outlines a total expenditure of N27.5 trillion, with a deficit of N9.18 trillion.

The high demand for NTBs underscores investors’ confidence in the government’s fiscal policies and its commitment to economic reform.

As interest rates on NTBs have risen in response to inflationary pressures, the CBN has capitalized on this demand by auctioning larger volumes of NTBs.

The move aims to address liquidity in the financial system while attracting foreign investors seeking higher yields.

Analysts view the surge in NTBs subscriptions as a testament to investors’ confidence in the Nigerian government and its reforms.

The massive oversubscription signals significant system liquidity and reflects the attractiveness of NTBs as a safe investment option amidst economic uncertainties.

Continue Reading

Investment

A.P. Moller-Maersk Pledges $600m Investment in Nigerian Ports

Published

on

Lekki Deep Seaport

A.P. Moller-Maersk, one of the world’s largest shipping and logistics companies, has committed a $600 million investment into Nigerian ports.

The decision was unveiled during a high-profile meeting between Chairman of A.P. Moller-Maersk, Mr. Robert Maersk Uggla, and Nigerian President Bola Tinubu.

The investment, aimed at expanding port infrastructure to accommodate larger container ships, comes at a pivotal moment for Nigeria’s economy.

Historically, the West African coast has been serviced by smaller vessels but with this injection of capital, A.P. Moller-Maersk envisions deploying larger ships to Nigeria, transforming the country into a major logistics hub for the region.

The move not only underscores Nigeria’s strategic importance but also highlights the company’s confidence in the country’s growth potential.

Speaking on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth, and Energy for Development in Riyadh, Saudi Arabia, Chairman Robert Maersk Uggla expressed optimism about Nigeria’s prospects.

“We have seen a significant opportunity for Nigeria to cater for larger container ships,” Uggla stated. “To achieve this, we need to expand the port infrastructure, especially in Lagos, where we need a bigger hub for logistics services. The growth potential is hard to quantify.”

In response, President Tinubu welcomed the firm’s commitment and emphasized the government’s dedication to fostering an enabling environment for investments.

“We appreciate your business and the contribution you have made and continue to make to our country’s economy over time,” Tinubu remarked. “A bet on Nigeria is a winning bet. It is also a bet that rewards beyond what is obtainable elsewhere.”

The infusion of $600 million into Nigerian ports signifies more than just a financial transaction; it symbolizes a partnership built on mutual trust and shared objectives.

With Nigeria poised to benefit from enhanced port infrastructure and increased trade capacity, the ripple effects of this investment are expected to be felt across various sectors of the economy.

Furthermore, A.P. Moller-Maersk’s decision aligns with Nigeria’s broader vision of becoming a regional economic powerhouse. By attracting foreign investment and fostering strategic collaborations, the country is laying the groundwork for sustainable growth and development.

As Nigeria charts a course towards prosperity, the $600 million commitment from A.P. Moller-Maersk serves as a beacon of hope and a testament to the nation’s potential on the global stage. With determination and collective effort, Nigeria stands poised to capitalize on this opportunity and navigate the waters of progress with confidence.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending