BUSINESS

African airlines to transport 400million passengers in 2036

Published

7 years ago

October 26, 2017

Air traffic in Nigeria and other Africa countries has been estimated to increase by 274 million, bringing the total traffic per year to 400 million by 2036.

The global projection released by the International Air Transport Association (IATA) estimated the traffic in Africa to consistently grow by 5.9 per cent over the next 20 years.

The growth rate, though marginal when compared with other continents, promises boom time for prepared airlines on both local and international routes.

IATA, in a forecast released on Tuesday, expects 7.8 billion passengers to travel in 2036, a near doubling of the four billion air travelers expected to fly this year. The prediction is based on a 3.6 per cent average Compound Annual Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-Year Air Passenger Forecast.

IATA’s Director General and Chief Executive Officer (CEO), Alexandre de Juniac, said all indicators lead to growing demand for global connectivity.

“The world needs to prepare for a doubling of passengers in the next 20 years. It’s fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand,” de Junaic said.

According to IATA, the biggest driver of demand will be the Asia-Pacific region. The region will be the source of more than half the new passengers over the next two decades.

The point at which China will displace the United States as the world’s largest aviation market (defined as traffic to, from and within the country) has moved two years closer since last year’s forecast.

“We now anticipate this will occur around 2022, through a combination of slightly faster Chinese growth and slightly reduced growth in the U.S. The UK will fall to fifth place, surpassed by India in 2025, and Indonesia in 2030. Thailand and Turkey will enter the top ten largest markets, while

France and Italy will fall in the rankings to 11th and 12th respectively.
Risks, opportunities and sustainability,” IATA stated in the report.

A number of risks to the forecast have been identified. Maximising the potential benefits of aviation growth will depend on current levels of trade liberalisation and visa facilitation being maintained.

If trade protectionism and travel restrictions are put in place, the benefits of air connectivity will decline as growth could slow to 2.7 per cent, meaning 1.1 billion fewer passenger journeys annually in 2036.

Conversely, if moves towards liberalisation increase, annual growth could be more than two percentage points faster, leading to a tripling in passengers over the next 20 years.

Planning for growth will require partnerships to be strengthened between the aviation industry, communities and governments to expand and modernize infrastructure. Runways, terminals, and ground access to airports will come under increasing strain.

Innovative solutions to these challenges, as well as to the baggage and security processes, cargo handling, and other activities, will also be needed. And air traffic management needs urgent reform to cut delays, costs and emissions.

“Increasing demand will bring a significant infrastructure challenge. The solution does not lie in more complex processes or building bigger and bigger airports but in harnessing the power of new technology to move activity off-airport, streamline processes and improve efficiency.

Through partnerships within the industry and beyond, we are confident that sustainable solutions for continued growth can be found,” de Juniac said.

The aviation industry has adopted a robust strategy to reduce its environmental impacts, particularly its carbon emissions.

“No industry has done more to meet its environmental obligations than aviation. Our tough targets to achieve carbon-neutral growth from 2020 and to cut our CO2 emissions to half-2005 levels by 2050 are backed by a comprehensive strategy.

“Our immediate aims are to work with governments to increase the production of sustainable aviation fuels, and to deliver air traffic management efficiencies, which promise significant emissions savings. And from 2020, a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will play a major role in meeting our carbon-neutral target,” de Juniac said.

The five fastest-growing markets in terms of annual additional passengers in 2036 compared to 2016 will be China (921 million new passengers for a total of 1.5 billion); U.S. (401 million new passengers for a total of 1.1 billion); India (337 million new passengers for a total of 478 million); Indonesia (235 million new passengers for a total of 355 million) and Turkey (119 million new passengers for a total of 196 million).

Many of the fastest-growing markets are achieving a compound growth rate of more than 7.2 per cent per year, meaning their market will double in size each decade. Most of these markets are in Africa, including: Sierra Leone, Benin, Mali, Rwanda, Togo, Uganda, Zambia, Senegal, Ethiopia, Ivory Coast, Tanzania, Malawi, Chad, Gambia and Mozambique.

Routes to, from and within Asia-Pacific will see an extra 2.1 billion annual passengers by 2036, for an overall market size of 3.5 billion. Its annual average growth rate of 4.6 per cent will be the third-highest, behind Africa and the Middle East.

The North American region will grow by 2.3 per cent annually and in 2036 will carry a total of 1.2 billion passengers, an additional 452 million passengers per year.

Europe will also grow at 2.3 per cent, and will add an additional 550 million passengers a year. The total market will be 1.5 billion passengers.

Latin American markets will grow by 4.2 per cent, serving a total of 757 million passengers, an additional 421 million passengers annually compared to today.

The Middle East will grow strongly (5.0 per cent) and will see an extra 322 million passengers a year on routes to, from and within the region by 2036. The total market size will be 517 million passengers.

Guardian

BUSINESS

10 African Countries Where Cryptocurrency Is Restricted

Published

8 hours ago

May 18, 2024

Adaeze Okechi

Cryptocurrency: 10 African Countries Where It Has No Use | Fab.ng

Cryptocurrency transactions remain banned in some African countries, despite the potential for regulatory frameworks to support their development.

According to Chainalysis, Africa is one of the fastest-growing crypto markets globally, with Kenya, Nigeria, and South Africa having the highest number of users in the region.

Many governments are wary of digital assets due to concerns over money laundering, illicit activities, tax evasion, and financial fraud, as cryptocurrency transactions can be hard to trace.

In 2021, the Central Bank of Nigeria (CBN) ordered banks to close all customer accounts involved in cryptocurrency transactions. However, this ban was lifted in December 2023.

On May 6, 2024, the Securities and Exchange Commission (SEC) increased restrictions by delisting the naira from all peer-to-peer (P2P) platforms. The Director-General of the SEC, Emomotimi Agama, mentioned that the government is drafting new regulations for the crypto sector, following the advice of the International Monetary Fund (IMF).

10 African countries that have banned cryptocurrency

Here are countries in Africa where crypto transactions or digital currencies has no use:

1. Tunisia

Tunisia is one of the African countries taking a particularly cautious approach to cryptocurrency. Back in 2018, their central bank made headlines by actually criminalising the use of cryptocurrencies.

They issued a strong statement warning people against using any digital asset that the Tunisian government did not officially approve. This strict stance shows just how seriously some African countries are taking the potential risks associated with cryptocurrency.

2. Sierra Leone

Sierra Leone has been very cautious about cryptocurrency. In 2019, their central bank took a strong stance against it. They shut down two cryptocurrency companies and made it clear that they wouldn’t be granting any licences to businesses or banks that wanted to deal with cryptocurrency deposits or trading.

This shows that Sierra Leone is concerned about the potential risks involved with cryptocurrency and is taking steps to limit its use in the country.

3. Republic of Congo

The situation regarding cryptocurrency in the Democratic Republic of Congo (DRC) is a bit unclear. The International Monetary Fund (IMF) reports that the Congolese government has completely banned cryptocurrency.

However, a 2018 study by Ecobank suggests the opposite. They found no official statements from either the Congolese government or the Central Bank regarding cryptocurrency’s legality or use.

This lack of clear communication from Congolese authorities makes it difficult to say for sure what the official stance is on cryptocurrency. However, from the IMF reports, it is assumed that the government does not accept its use.

4. Ghana

Ghana is another African country taking a wait-and-see approach to cryptocurrency. The Ghanaian government has completely banned crypto transactions within the country.

Despite the ban, the government is still interested in the underlying technology behind cryptocurrency, blockchain. They’re currently studying how blockchain could be used to improve Ghana’s payment systems.

This cautious approach is evident in their actions. In 2022, they reaffirmed the 2018 ban on using cryptocurrency for any financial transactions in Ghana.

5. Algeria

Algeria has a strict ban on cryptocurrency. Back in 2018, their parliament passed a law that completely restricted digital currency activity in the country. This law prohibits Algerians from buying, selling, using, or even just owning cryptocurrency.

6. Lesotho

In 2018, the country’s central bank raised a red flag about cryptocurrency. They issued a statement warning people against promoting or investing in crypto because it wasn’t regulated or officially licensed by the government. This suggests they’re concerned about the potential risks involved.

7. Morocco

Morocco’s relationship with cryptocurrency has been a rollercoaster. In 2017, the Ministry of Economy slammed the brakes on crypto transactions, fearing they violated the country’s exchange regulations. This meant a complete ban on buying, selling, or trading cryptocurrency in Morocco.

However, things seem to be changing. In 2023, there was a positive shift. Morocco’s central bank announced they were working on drafting new regulations specifically for crypto trading. This suggests a move towards a more controlled and monitored crypto market in Morocco.

8. Tanzania

Tanzania is another African country where cryptocurrency exists in a bit of a grey area. There aren’t any written laws or regulations specifically about cryptocurrency transactions in Tanzania.

However, the Tanzanian central bank has taken a cautious approach. They issued a public statement advising people against trading or using virtual currencies like Bitcoin. The bank made it very clear that the only official currency recognised in Tanzania is the Tanzanian shilling.

9. Cameroon

Cryptocurrency is a hot topic in Central Africa, but there are no clear rules yet. Cameroon, for example, belongs to the Central African Economic and Monetary Community (CEMAC). This means they use the Central African CFA franc, managed by the Bank of Central African States (BEAC).

Right now, the BEAC hasn’t set any regulations for crypto trading. This might seem surprising considering the growing popularity of crypto. However, the good news is that the Cameroon government is working on it. They’re currently reviewing new rules to create a framework for cryptocurrency use in the country.

10. Egypt

Things are complicated when it comes to cryptocurrency in Egypt. In 2018, a major Islamic legal authority called Dar al-Iftai issued a religious decree. This decree said that trading Bitcoin goes against Islamic law (Sharia Law). They basically classified it as forbidden, which is the meaning of the word “haram.”

This was followed by a move from the Egyptian Central Bank in 2019. They announced plans to create a new law. This law would make it illegal to create, trade, or even promote cryptocurrency without a special licence.

So, while using digital currency isn’t completely banned, it seems Egyptian officials are cautious about it and want to regulate it very closely.

For more articles like this, visit here.

BUSINESS

Employment Will Teach You These 10 Lessons

Published

2 weeks ago

May 5, 2024

Adaeze Okechi

Employment Will Teach You These Lessons | Fab.ng

Employment, or working for a living, can be a double-edged sword.

Sure, employment is a great way to achieve financial security and independence. It allows you to pay your bills, afford the things you need and want, and build a nest egg for the future. But let’s be honest, it also comes with challenges you might not expect when you’re first starting out.

Let’s explore these employment lessons below:

1. Startup costs can be a hurdle

You start a job to earn money, but you also need money upfront for things like professional work clothes, reliable transportation to get to and from work, and maybe even some basic office supplies. It can feel ironic that you invest your own money just to be able to make more money at your new job.

2. The Monday blues can hit hard

If you’re not passionate about your job and employment, Mondays can feel especially dreadful. It’s tough to be motivated and energised to tackle a long week of tasks you don’t enjoy, even if the work itself is relatively easy. This can affect your overall mood and productivity.

3. Making ends meet can be a constant juggling act

You work diligently every day, putting in your hours and effort. But depending on your employment salary, your paycheck might only come once a month.

This can make it challenging to budget effectively and ensure you have enough money to cover all your expenses throughout the entire month. It might require some creativity and financial planning to stretch your paycheck as far as possible.

4. Payday loans can become a trap

If you’re not careful with your money management and overspend throughout the month, you might find yourself broke before your next paycheck arrives. It can be tempting to resort to payday loans or credit cards to cover your essential expenses until payday.

However, these options often come with high interest rates and fees, which can trap you in a cycle of debt and make it even harder to manage your finances in the long run.

5. Your well-being is paramount

When you’re desperate for a job and trying to get your foot in the door, you might downplay the importance of work-life balance and readily agree to work under pressure on your resume. But a job that constantly stresses you out and takes a toll on your mental health might not be worth it in the long run.

There are some things money can’t buy, like peace of mind, good health, and strong relationships. It’s important to get employment that offers a healthy work-life balance and doesn’t come at the expense of your well-being.

6. The side hustle can be a lifesaver

When your income from your main job isn’t enough to cover your bills and your desired lifestyle, you might find yourself brainstorming ways to make more money on the side.

This could involve starting a freelance business, taking on a part-time gig, or exploring other avenues to supplement your income.

The extra income can help you achieve your financial goals faster, reduce financial stress, and give you more breathing room in your budget.

7. Health truly is wealth

One unexpected illness or injury can wipe out your savings quickly. Medical bills and medications can be very expensive, and even basic health insurance might not cover everything. This makes staying healthy even more important.

Taking preventative measures like eating healthy, getting regular exercise, and getting enough sleep can help you avoid costly health problems down the road.

8. Relaxation is key to avoiding burnout

If you don’t take breaks and prioritise relaxation, you might get sick, which can be a financial burden due to missed workdays and medical bills.

It’s important to schedule time for vacations, hobbies, and activities that help you de-stress and recharge. A well-rested and relaxed employee is a more productive and resilient employee in the long run.

9. Sometimes privacy is necessary

Depending on your social circle and financial situation, you might try to hide the fact that you have a job, especially if people around you constantly ask for money.

You might avoid them to escape the pressure to lend them money or give financial handouts. This can be a way to protect your financial security and avoid feeling taken advantage of.

10. Appreciation for your parents grows

Seeing how quickly money comes and goes can make you appreciate your parents more. You realise it wasn’t easy for them to provide for you when you were younger.

They likely had to make sacrifices and manage their finances carefully to make ends meet. This newfound understanding can bring you closer to your parents and give you greater respect for their hard work.

Even though having employment has its challenges, it doesn’t mean being unemployed is better. Life can be tough, but you can learn to develop strong financial habits, find a job that aligns with your values, and prioritise your well-being to navigate the complexities of working life.

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BUSINESS

Thinking Of Investing In Money Market Funds? Check These Out!

Published

2 weeks ago

May 4, 2024

Adaeze Okechi

Money Market Funds: Factors To Check Before Investing | Fab.ng

Many people looking for safe places to invest their money, like money market funds. These funds are like pools of money from many investors that are used to buy very safe short-term loans. This means you get your money back quickly, and there’s a low chance of losing it.

The money market fund also pays you a bit of interest on your money, but not as much as some other investments. Before you decide to put your money in a money market fund, there are some things you should think about to make sure it’s a good fit for you.

Consider these factors before investing in money market funds

1. What are you hoping to achieve, and how much risk are you okay with?

Before choosing a money market fund, think about your goals. Are you looking to keep your money safe (capital preservation), easily access it when needed (liquidity), or earn a small amount of interest (modest return)? Knowing your goals will help you pick the best fund for you.

Money market funds are generally considered safe, but there’s still a small chance of losing money. Consider how much risk you’re comfortable with.

2. Fees and expenses

Like any investment, money market funds have fees. These fees are usually shown as a percentage called the expense ratio. This covers things like management fees, administration costs, and other expenses.

Shop around and compare expense ratios between different funds. Lower fees mean you get to keep more of your returns. Also, watch out for any additional fees, like charges for buying or selling shares, which can also reduce your returns.

3. What the fund buys and how good it is

Money market funds buy short-term loans from different sources, like the government, businesses, and banks. These loans are called Treasury bills, commercial paper, and certificates of deposit (CDs).

It’s important to see what kind of loans the fund is buying and how good they are. Look for funds that buy high-quality, easy-to-sell loans from reliable sources. Avoid funds that buy too many risky or hard-to-sell loans, as this makes the fund riskier.

4. How much interest you earn and how the fund has done in the past

Money market funds typically don’t pay as much interest as other investments like stocks or bonds, but it’s still a good idea to compare interest rates between different funds. See how the fund has done in the past to get an idea of its performance.

Remember, past performance doesn’t guarantee future results, but it can give you a clue about how the fund has done before.

5. The risk of not getting your money back

Even though money market funds invest in safe loans, there’s still a small chance that the borrower might not be able to repay the loan. This is called credit risk.

To minimise this risk, look for funds that buy loans from very creditworthy borrowers and consider funds with high ratings from credit rating agencies like Standard & Poor’s or Moody’s.

6. How easy it is to get your money out

One of the benefits of money market funds is that you can easily get your money back when you need it. However, some funds make it easier than others.

Find out about the fund’s rules for getting your money out and any minimum amount you need to invest. Make sure the fund allows you to access your money as easily as you need to.

7. How safe is the fund, and are the rules fair?

There are rules in place to protect investors and keep money market funds stable. Stay informed about any changes to these rules that might affect the funds. Choose a fund that follows good business practices and the established rules.

For more business articles, check here.