African Development Bank Donates Nearly $ 7 Million to Implement the Single Market for African Air Transport

AfDB NEWS & EVENTS

12-May-2020

The Board of Directors of the African Development Bank approved, last February 4 in Abidjan, a donation of nearly 7 million US dollars to the African Civil Aviation Commission (AFCAC) for the implementation of the Market unique of African air transport (MUTAA).

With this support of 6.85 million US dollars (5 million Units of Account, UA), the African Development Fund, concessional loan window of the African Development Bank Group bears 89.5% of the cost overall of the project, estimated at 7.65 million US dollars (UA 5.58 million), the rest (10.4%) being co-financed by AFCAC.

AFCAC will thus be able to set up the appropriate institutional and regulatory framework and raise awareness of the successful implementation of MUTAA.

The 36-month project includes three components: institutional strengthening of AFCAC to provide the implementing agency and other stakeholder institutions (regional economic communities, states and airlines) with the knowledge and the skills necessary to establish MUTAA on a lasting basis; support for the sustainable development of air transport in Africa by strengthening safety, security and environmental protection; project management, monitoring and evaluation.

The MUTAA should improve the access of Africans (more than 1.2 billion people) to air transport, thus promoting regional integration and stimulating trade and tourism between the countries of the continent.

The African Development Bank has considerable experience in the air transport sector, acquired from projects carried out in various regional member countries as well as with regional economic communities and international aviation stakeholders, including the Organization of international civil aviation, with which it financed the improvement of the political and regulatory frameworks of civil aviation.

The high-level meetings of the African Union Commission and the champion head of state of MUTAA, the President of Togo, Faure Gnassingbé, have constantly called on the Bank and other development partners to provide support to AFCAC to successful implementation of MUTAA. The Bank is a party to the MUTAA Priority Action Plan. This institutional support project will position the Bank so that it can leverage the proven benefits of knowledge brokering, catalytic financing, policy advocacy and sound project management to advance implementation MUTAA.

This project is the first multilateral support granted to AFCAC.

MUTAA is considered a crucial logistical infrastructure and a facilitator for the proper functioning of the African Continental Free Trade Area (ZLECA), supplemented by the Protocol on the Free Movement of Persons and Goods and the African Passport. The AU Vision 2063 sets the ambitious goal of bringing growth in intra-African trade from 10% in 2012 to around 50% by 2045, through further integration. MUTAA was created in January 2018 as the first flagship project of the AU Agenda 2063.

The project is in line with the main objectives of the Bank's Ten-Year Strategy (2013-2022) and responds to two of the Bank's five strategic priorities, the “High 5”: “Integrating Africa” and “Improving the quality of life African populations ”.