High cost of air transport in EAC dampens flower, agricultural exporters’ bid for quick sales

The high cost of shipping flowers and agricultural products in East Africa as well as outside the region to Europe and Asian markets is restricting exporters from delivering merchandizes in time, new study has shown.
The study on economic impact of liberalization, costs and benefits of ‘Open Skies’ in EAC by InterVISTAS in collaboration with UKaid and East African Business Council (EABC), said that lack of adequate logistics and aviation infrastructure in the region, coupled with exorbitant costs of cargo flights increase time to market resulting in high holding costs and further degrades the quality of perishable goods including cut-flowers.
“Flower and agricultural exporters generally have goods to export, but are simply unable to economically do so due to the cost and lack of air cargo options available,” reads the report.
Many exporters dream of shipping cut-flowers, fruits and vegetables by air from Kilimanjaro and Arusha to Nairobi but are vetoed because transportation between these cities is typically by road – a situation now blamed for slower delivery of the commodities.
The study now wants air transportation in the region to be fully liberalized which it says will ease exorbitant flight costs for both passengers and cargo flights within the bloc as well as increase trade within East African Community (EAC).
Air transport in East Africa is still expensive by international standards thus contributing to high cost of doing business and severely hurting key sectors such as tourism.
“Improved cargo networks due to liberalization in the region are expected to open up many more export opportunities for producers, as most of the valuable cut flower trade between Kenya and the EU is carried on passenger aircraft versus dedicated freighters,” the report stated.
EABC Executive director Lilian Awinja is now calling for a speedy implementation to the Yamoussoukro Decision (YD) passed in 1999 and develop plans on how air travel fees in the region can be cut to boost trade.
The report says that cargo handling infrastructure at airports outside of major hubs may allow for new markets to open up for regional air cargo transport, thus further allowing perishable goods from EAC nations to flow to key markets in the EU, Asia, and the Americas.