17 October 2021 - 16:44There has been a flurry of activity by SA companies on the continent recently — from Vodacom’s successful bid as minority partner for the Ethiopian telecommunications licence to the memorandum of co-operation between SAA and Kenyan Airways that is intended to sow the seed for a pan-African airline.
They could even worsen AfCFTA’s many weaknesses and ultimately help consign it to the dustbin of history if not addressed. It is this inflexibility that has caused many in Africa, and certainly in East Africa, to slowly turn away from some SA products. “I think that the centralisation of operations in SA has prevented many brands from being nimble, nimble to matters of pricing, nimble to tastes,” Gichinga said, “if that can be devolved to countries in Africa, I think SA brands will be far more dynamic and far more relevant to the local market.
Other SA companies have gone down the road of co-operation with local companies, pooling resources to achieve economies of scale and in exchange for local market access. The newly-signed memorandum of co-operation between SAA and KQ is a good example. Borne out of severe commercial stress at both carriers, nevertheless the pivot towards the continent is forward-thinking that makes economic sense for both and anticipates a greater flood of intra-African airline traffic, especially under AfCFTA.
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