Single African Air Transport Market

The Single African Air Transport Market (SAATM) is a significant initiative under the African Union's Agenda 2063, aimed at creating a single unified air transport market across the continent. It is the embodiment of the African Union's vision to advance the liberalization of civil aviation in Africa and accelerate economic integration.

Background

The establishment of the SAATM is rooted in the Yamoussoukro Decision, an agreement amongst most African Union member states to liberalize the air transport services between African countries. The African Civil Aviation Commission (AFCAC) plays a crucial role as the executing agency of the SAATM, overseeing its implementation.

Implementation Efforts

The SAATM is supported by a comprehensive advocacy and communication strategy aimed at engaging all stakeholders, a critical component of the SAATM Prioritized Action Plan. This effort is crucial for the operationalization of the market. The International Air Transport Association (IATA), in collaboration with the African Union Commission, AFCAC, and the African Airlines Association, has developed extensive resources, including a SAATM Handbook, to provide guidance on this initiative.

Economic Implications

The SAATM aims to increase connectivity, boost economic growth, and create jobs across Africa. An IATA survey suggests that open air arrangements could provide substantial economic benefits. If just 12 key African countries opened their markets, it could lead to an additional 155,000 jobs and an increase of $1.3 billion in annual GDP.

Member Countries

As of now, 34 countries have committed to the SAATM, including Benin, Botswana, Burkina Faso, Cabo Verde, Cameroon, and Egypt, among others. This commitment signifies a robust regional support towards the establishment of a single air transport market.

Integration with Single Market Concepts

The SAATM aligns with broader single market concepts, which involve the removal of trade barriers to enhance economic integration and cooperation. Similar to the European Single Market, the SAATM seeks to harmonize aviation regulations and policies among member countries, fostering a competitive market environment analogous to a broader continental trade area like the African Continental Free Trade Area.

The Single Market

A single market, also referred to as a common market or internal market, is a type of trade bloc wherein most trade barriers, particularly for goods, are eliminated. This concept is designed to facilitate the free movement of goods, services, capital, and labor, enhancing competition and efficiency across borders among the participating entities.

European Single Market

The European Single Market, also known as the European Internal Market or the European Common Market, is the most prominent example of a single market. It primarily includes the 27 member states of the European Union (EU). Additionally, through the Agreement on the European Economic Area, it encompasses Iceland, Liechtenstein, Norway, and through specific treaties, Switzerland.

The European Single Market was conceptualized to amplify competition, labor specialization, and economies of scale within Europe. It aims to allow goods and production factors to migrate to areas where they are highly valued, thereby optimizing resource allocation and fostering economic integration among member states. This integration seeks to transform once-separate national economies into a cohesive EU-wide economy.

The ambition to create a common market was central to the establishment of the European Economic Community (EEC) in 1957. This initiative was primarily focused on enabling the free movement of goods, services, people, and capital. However, early efforts were hampered by the lack of robust decision-making frameworks.

The Single European Act later set a definitive target, aspiring to establish a single market by December 31, 1992. This act laid the groundwork for the legislative and regulatory environment that would support a unified market.

Digital Single Market

The concept of the Digital Single Market is an extension of the single market principles into the digital realm. It seeks to dismantle national or jurisdictional barriers to online transactions, facilitating a digital economy that is as seamless as the physical market. Key legislative components like the Directive on Copyright in the Digital Single Market are central to this vision, aiming to harmonize digital content and services laws across the EU.

CARICOM Single Market and Economy

The CARICOM Single Market and Economy, also known as the Caribbean Single Market and Economy (CSME), represents a similar endeavor in the Caribbean. It stands as an integrated development strategy aimed at fostering economic growth and stability in the region through shared policies and standards to eliminate trade barriers and streamline the movement of goods and services.