Four new applications have been submitted by local and foreign investors to the Ghana Civil Aviation Authority (GCAA) for an Air Carrier License (ACL) to enable them to operate an airline business in Ghana.
The ACL application is the first step in the process to operate an airline business and details the general nature of the intended operations, financiers, and the proposed operating team.
AviationGhana sources at the GCAA say the four companies submitted their ACL applications in December 2020.
Based on the documents submitted, the investors are seeking to operate domestic and regional flights to tap into the opportunities that the Africa Continental Free Trade Area (AfCFTA) presents in both the passenger and cargo side of the aviation business.
Since the re-opening of the Kotoka International Airport (KIA) on September 1 to scheduled passenger operations, 14 international airlines, five (5) regional airlines, and two domestic airlines are currently servicing the KIA.
With the coming into effect of the AfCFTA on January 1, 2021, the need for a robust aviation sector to facilitate the transportation of people and goods produced by member countries to boost intra-Africa trade.
AfCFTA provides the opportunity for Africa to create the world’s largest free trade area, with the potential to unite 1.3 billion people in a US$2.5 trillion economic bloc and usher in a new era of development.
The main objectives of AfCFTA are to create a continental market for goods and services, with free movement of people and capital, and pave the way for creating a customs union.
It will also grow intra-African trade through better harmonization and coordination of trade liberalization across the continent.
AfCFTA is further expected to enhance competitiveness at the industry and enterprise level through the exploitation of opportunities for scale production, continental market access, and better reallocation of resources.
Ghana was selected to host the secretariat of AfCFTA, giving the country a pivotal role in overseeing the implementation of the agreement. The country committed US$10 million for the operationalization of the secretariat located in the heart of Ghana’s capital Accra.