Investing in the aviation industry should be done with the highest precaution to maximise profits, experts have said.
Roger Forneris, a French investor in the aviation sector, said developing economies, including Rwanda, need to understand the dynamics of the industry before making huge investments in the sector.
“There is no point of constructing huge airports which will not attract air traffic. This is one of the biggest challenges faced by most African economies looking for ways to boost aviation businesses,” Forneris, who is also the director of Aeroports De Lyon, a French company that deals in aircraft business, said.
Forneris was part of the delegation of French investors who were in the country last week.
He pointed out that investing in aviation infrastructure development should be coupled with growth to guarantee business for the industry.
“It’s always a stable economy, the geographical location of that economy, coupled with technology and security that drive aviation businesses,” Forneris said in an interview in Kigali recently.
Loba Christophe, the information and operations manager at Green IT Addict, a French company, said investing in information technologies boosts aviation business, making it competitive on the global market, and profitable.
“Businesses all over the world have now realised the potential of employing ICTs in their operations; this should be the case with the aviation-related businesses,” Christophe, who was part of the delegation of French investors, said.
However, Dr. Richard Masozera, the director general of the Rwanda Civil Aviation Authority, said huge investments in the aviation industry are necessary because they benefit the economies in the long-run.
“Investing in the aviation sector is a long-term venture…Given the geographic location of Rwanda and the country’s long-term vision, it is only logical we invest heavily in the sector because of the long-term benefits the industry will bring to the economy,” he noted.
Masozera added that it’s important for Africa’s aviation sector to reposition itself in line with the current global aviation requirements to be competitive. “This requires a lot of investments into the industry to make it a significant contributor towards the continent’s development,” he said.