AFCAC

SAATM FAQs

1. What is the SAATM?
Launched in January of 2018, the Single African Air Transport Market (SAATM) is an African Union Agenda 2063 flagship project that aims to create a unified air transport market across the whole of Africa by fully implementing the Yamoussoukro Decision.

2. What are the objectives of the SAATM?
a) The SAATM aims to ensure intra-regional connectivity between Africa’s capital cities and to create a single unified air transport market across Africa, to help propel the continent’s economic integration and sustainable growth agenda.

b) The SAATM provides for the full liberalisation of intra-African air transport services including market access, and traffic rights for both scheduled and for freight air services for eligible airlines in order to improve air services connectivity and air carrier efficiencies.

c) The SAATM removes restrictions on ownership and provides for the full liberalisation of frequencies, tariffs and capacity.

d) The SAATM provides eligibility criteria, safety and security standards, mechanisms for fair competition and dispute settlement as well as consumer protection for African community carriers.

3. What is the Yamoussoukro Decision of 1999?
The Yamoussoukro Decision (YD) is a landmark initiative intended to develop the aviation industry by promoting the full liberalisation of intra-African air transport services including market access, the free exercise of the 1st, 2nd, 3rd, 4th and 5th Freedom Traffic Rights for scheduled and freight air services by eligible airlines. The YD has precedence over any multilateral or bilateral agreements on air services between State parties, that are incompatible with the Decision. It was designed to bind all State parties to the provisions of the Decision.

4. How does a State join the SAATM?
States are required to sign a formal letter of “Solemn Commitment” which will facilitate the immediate inclusion in the formal Decisions/Declarations of the SAATM. The letter is to be sent to the African Union Commission with a copy endorsed to the African Civil Aviation Commission (AFCAC) for follow-up action.

Thereafter, states are expected to implement the “Immediate Measures Towards Actualising the Declaration of Solemn Commitment by African Union Member States to the Implementation of the 1999 Yamoussoukro Decision and the Establishment of a Single African Air Transport Market By 2017 (Concrete Measures)” and join the SAATM-PIP.

5. What are the SAATM Concrete Measures?
The Concrete Measures are a set of recommendations outlining the critical elements in implementation of the SAATM. The first set of eight SAATM Concrete Measures was formulated following the Declaration on the Establishment of a Single African Air Transport Market (Assembly/AU/Decl.1, XXIV) in 2015.

Due to the reluctance of some SAATM States to honour their commitments with respect to the implementation of the Concrete Measures, the following seven concrete measures were introduced and adopted:

The seven Concrete Measures are as follows:

a) States shall notify other signatory State Parties to the Declaration of Solemn Commitment that the State’s skies are fully liberalised in accordance with the Yamoussoukro Decision (1999) and that all restrictions on traffic rights under the 3rd, 4th and 5th freedoms, frequencies, fares and capacity for signatory States to the Solemn Commitment have been removed.

b) States shall publish in accordance to their national laws that they are committed to the immediate implementation of the Yamoussoukro Decision under the terms of the Declaration of Solemn Commitment in line with the AU Agenda 2063 while the Executing Agency shall notify other signatory States.

c) States shall immediately constitute their National Implementation Committees for the Yamoussoukro Decision and the establishment of a Single African Air Transport Market, designate a dedicated focal point and notify the Executing Agency (AFCAC) who shall inform all other signatory States accordingly to facilitate contacts.

d) State Parties shall ensure that all national Laws, Regulations, Rules, Policies are in conformity with the express provisions of the Yamoussoukro Decision and notify the Executing Agency of the YD.

e) States shall propose to the Executing Agency (AFCAC) at least one airline established in their State for international air services for consideration under the eligibility criteria Article 6.9 of the Yamoussoukro Decision. The proposed airline can also be from another State Party or a multi-national African airline in accordance with Article 6 of the Yamoussoukro Decision.

f) State Parties shall promote air transport sustainability through safety and security, regulatory framework and strict adherence to ICAO Guidance and Policies on taxes, charges and fees.

g) States Parties shall submit relevant air transport data to the Executing Agency in a prescribed format.

The Concrete Measures are a national blueprint that outlines the minimum expectations of stakeholders’ desires to implement the SAATM in their home country. Implementing the Concrete Measures requires close collaboration from national stakeholders, namely the Ministries of Aviation/Transport, Civil Aviation Authorities, Airlines, and Ministry of Justice (or equivalent legislative body). If these national stakeholders prioritise these seven concrete measures, SAATM implementation will be greatly optimised within that State. The requirement to formulate a National Implementation Committee (CM no. 3) underscores the fact that the SAATM cannot be implemented in a vacuum or by one Ministry. Implementation of the SAATM is a national effort and must be prioritised by all key agencies within a State.

6. What are the benefits of the SAATM?

a) SUBSTANTIAL BENEFITS FOR PASSENGERS:
i. Fare savings: passengers are expected to benefit from fare reductions averaging 26.4% across the continent and ranging between 18.6% and 39.7% within individual countries, providing a saving of US $1.46 billion per annum.

ii. Increased consumer welfare: full SAATM implementation also results in additional passengers travelling who previously were unable to do so, due in part to the lower cost of travel. The benefit to these additional passengers is captured by consumer surplus (the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay). The total increase in consumer surplus is estimated to be US $2.85 billion across the African Union countries.

iii. Greater connectivity: of the 1,431 country pairs between the African Union countries, only 19% had some form of significant direct service in 2019 (operated at least once weekly on an annual basis). With liberalisation, it is forecast that an additional 145 country-pairs will receive direct service.

iv. Greater convenience: in 2019, only 35% of the Africa routes were operated on a daily or more basis, and only 13% were operated on twice or more daily. Many had seasonal services or services operated at less than daily frequency. Such services offer passengers very limited choice in terms of their journey timings and prevent passengers obtaining a convenient itinerary (e.g., conducting a trip over a single day, which is important to companies trying to minimise the time their staff are out of the office). With liberalisation, it is estimated that frequencies on existing routes will increase by 27%, providing greater convenience and choice for consumers.

v. Time savings: new routes and greater frequencies will shorten the flying time between many cities. For example, in 2019 there was no regular direct service between Central Africa Republic and Democratic Republic of the Congo. The most convenient routing available was via West Africa or Morocco. The minimum journey time for this routing was 9.5 hours but depending on connecting times could be as much as 15 hours. A direct service would reduce the travel time between the two countries to approximately 2 hours.

b) SOCIO-ECONOMIC BENEFITS
i. Job Creation: Across the 54 African Union countries, full YD implementation is projected to result in an additional 588,750 jobs and US$4.0 billion additional GDP per annum (0.17% of the total GDP of these countries).

ii. Contribution to Tourism: Based on tourist visitor rates and spent rates specific to each country, an additional 3.95 million tourist visits across Africa with a total spending of US$1.65 is projected. An incremental 267,530 jobs in tourism and related industries and US$1.4 billion are also expected to be generated.

iii. Contribution to GDP: The incremental GDP represents a 0.06% – 2.21% increase on 2019 GDP levels, with all countries expected to gain economically from liberalisation.

c) SOCIO-ECONOMIC BENEFITS SPECIFIC TO SAATM MEMBER STATES:
Analysis was also conducted of the economic impact of full YD implementation (or where a MASA is signed) between the 54 current participants of the SAATM (as of April 2023). A total of 239,650 incremental jobs are projected, combining the impacts in the aviation and tourism sectors and the other direct and indirect impacts, along with US $1.6 billion in annual GDP. This is approximately 40% of the jobs and economic activity forecast for liberalisation across the entire African Union.

7. Which organisations supervise the SAATM implementation?
Under the leadership of the African Union Commission (AUC) and the African Civil Aviation Commission (AFCAC), African industry stakeholders have been working closely together to ensure the operationalisation of the SAATM, which has resulted in the progress that has been achieved so far.