Investors, Airlines from 150 Countries Meet in Kenya to Deliberate on Cargo Freighting in Africa

Chinedu Eze in Nairobi

Over 400 participants from 150 countries met yesterday in Nairobi, Kenya, to deliberate on air freighting and management of cargo.

The event had the theme, “Air Cargo Africa and Transport Logistics.”

It was aimed at collectively resolving industry-related issues in Africa, like limited infrastructure, preservation of perishables, and easy evacuation to dovetail the standard with global expectations to boost the fortunes of the cargo business in Africa and across the world.

On the first day of the conference, Divisional Vice President of Emirates Skycargo, Badr Abbas, frowned on the global disruptions of cargo freighting, saying despite such challenges, the airline defies the odds to deliver cargo to their destinations and this remains its priority.

Abbas added that even in the midst of hiccups occasioned by the COVID-19 pandemic in 2020, Emirates Skycargo was still meeting the expectations of its customers.

Identifying the increased cargo demand globally and paucity of equipment, the airline announced its intention to add 21 more aircraft to its already existing 255 fleet dedicated to cargo globally, by the end of 2026.

Abbas said, “There is increased cargo demand globally and it will remain relatively so in the near future.  We are increasing our fleet to meet the demand of customers and also serve the upcoming ones.

“We have wide-body cargo planes on long-haul flights taking cargo to the deserved customers globally.  We are very strategic with our e-commerce division and it is one of our biggest strengths, because e-commerce is reshaping the global economy.

“E-commerce has increased the demand for a growing fleet and we have B777, B747 and A350 on order.

“We do not fear disruptions, as it happened during COVID-19 in 2020. Disruption is part of our DNA. We have been resilient against global disruptions, keeping our supplies moving to all destinations in order to meet the demand of our customers.”

Abbas stated that Dubai was expanding facilities to become the biggest cargo hub in the world.

“We have ordered additional aircraft; which delivery will start in 2026. In Africa, we freight 382, 000 tons of cargo weekly,” he added.

At the opening session of the event, Director-General of the Kenya Civil Aviation Authority, Emile Arao, expressed appreciation to professionals in the industry for their efforts to continually advance the aviation sector.

While commending the contribution of cargo freighting to the industry, Arao identified challenges faced by the cargo freighting sub-sector of the aviation business. He listed them as high taxes and charges (compared to other forms of transportation), capacity constraint, fuel price volatility, regulatory compliance, and supply chain disruption, among others.

Arao also stated that cargo demand was expected to increase by four to six per cent against earlier projected capacity growth.

He said, “The International Air Transport Association (IATA) anticipates cargo revenues reaching $157 billion in 2025, accounting for 15.6 per cent of total airline revenues.

“Recognising the ongoing geopolitical tensions, such as conflicts affecting the Red Sea, have led to rerouted sea freight, increasing reliance on air cargo.”

Arao said, “These disruptions have contributed to elevated air freight rates and capacity constraints. Additionally, manufacturers, like Airbus, are experiencing delays in freighter aircraft production due to supply chain issues, potentially limiting capacity expansion in the near term.

“Regulatory and economic factors, which involve potential changes in trade policies, including adjustments to tariffs and de minimis thresholds in key markets, like the U.S. and EU, could impact air cargo volumes, especially for e-commerce goods.”

He added, “While jet fuel prices are projected to decrease to an average of $87 per barrel in 2025, economic uncertainties and inflationary pressures remain concerns for operational costs and pricing strategies.

“Innovations in this ecosystem bring on-board a positive outlook for air cargo. For instance, some companies are developing unscrewed.”

In a speech, Chairman of the board of Kenya Airport Authority, Caleb Kositany, said the gathering was an avenue, not just to solve global issues in the cargo and transport market, but also a vital platform for uniting key stakeholders from across the globe.

Kositany reiterated the potential of the conference to deliver new business opportunities, global perspectives, strong networking platforms, and strengthen networking corridors, especially within the African continent.

He said, “This seventh edition of Air Cargo Africa, now held in conjunction with the inaugural Transport Logistics Africa, provides an unparalleled opportunity to explore innovative solutions that will shape the future of air cargo, transport, and logistics.

“It underscores the critical role our sector plays in driving economic growth, fostering regional integration, and unlocking Africa’s immense potential as a global logistics hub.”

The conference, which started in 2011, has been held outside Kenya for over 10 years and returned to Nairobi, known as headquarters of air cargo in Africa, this year.

The meeting comes at a time when cargo transport by air is facing challenges due to paucity of aircraft.

Africa is a burgeoning market on a rapid growth, and home to perishable agricultural produce and minerals. The continent has caught the world’s attention, as experts seek efficient and timely evacuation of cargo from many destinations in the region.