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South Africa’s air cargo expansion: New infrastructure and reforms set to boost trade and logistics

South Africa’s air cargo expansion: New infrastructure and reforms set to boost trade and logistics

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South Africa is gearing up to expand its air cargo capacity through major infrastructure upgrades and regulatory reforms.

Transport Minister Barbara Creecy outlined opportunities for the country’s aviation and air cargo sector at the Board of Airline Representatives of South Africa (Barsa) Aviation Summit in Zimbali, KwaZulu-Natal.

Construction will begin in the next financial year on a R5.7 billion midfield cargo terminal at OR Tambo International Airport, which Creecy says will “significantly increase our air freight handling capacity.”

This project is part of broader aviation infrastructure upgrades at Airports Company South Africa (Acsa) facilities, with expansion and upgrades already underway at three Acsa-operated airports, including Cape Town International Airport, which began in the 2024/25 financial year.

Creecy highlighted South Africa’s geographic challenges and opportunities. Located at the southern tip of the continent, the country faces longer flight distances, higher fuel consumption, and greater exposure to currency volatility. Yet, it also holds substantial cargo and logistics potential, including cold chain capacity to support time-sensitive exports.

“Integrated passenger and cargo route planning could enhance hub viability and strengthen South Africa’s position as a regional logistics gateway,” Creecy said. “These measures will boost the contribution of the aviation sector to tourism, economic development and job creation,” with government targets of 1.2 million tonnes of air freight during the current administration.

Licensing reforms to streamline operations

Creecy also discussed developments in the aviation regulatory system, including reforms to licensing and permitting processes affecting airline operations. Historical backlogs in air services licences and foreign operator permits have been cleared, and a new licensing council has been appointed for a three-year term, selected for its aviation, legal, financial, and transport economics expertise.

“Automation of processes is under way,” Creecy said, with a diagnostic review of the foreign operator permit (FOP) value chain commissioned in consultation with industry to identify structural and administrative inefficiencies. The goal is a digitised system developed with industry input through Barsa, based on “the correct operational fundamentals.”

Africa’s broader aviation context

Addressing the wider continental aviation environment, Creecy stressed that Africa must move beyond policy commitments to implement the Single African Air Transport Market (SAATM) to improve connectivity and compete globally.

“Africa accounted for about 18% of the world’s population but less than 3% of global air traffic,” she noted. Gulf carriers and major European airlines continue to expand across Africa, backed by deep capital and integrated alliances.

“The question before us is not whether competition will intensify. The question is whether Africa will compete collectively or remain fragmented,” Creecy said.