Diplomatic Inside
Johannesburg, 27 November 2024 – South African Airways (SAA) Interim CEO, Professor John Lamola, unveiled an Oxford Economics Africa report in Johannesburg today, highlighting the airline’s pivotal role in driving South Africa’s economic growth. The study highlights SAA’s contributions to GDP, tourism, trade, and job creation.
Marietta Jacobs, representing the Oxford Programme of Studies, provided a detailed analysis, noting that SAA fosters economic growth by spurring competition, innovation, and knowledge transfer. “SAA’s global connectivity positions South Africa as a competitive player in the global economy,” Jacobs said.
The report revealed that SAA added R9.1 billion to GDP in 2023/24, a figure projected to rise to R32.6 billion by 2029/30. Currently supporting 25,000 jobs, the airline group, including subsidiaries SAA Technical and Air Chefs, is expected to create 86,700 jobs within five years.
SAA’s impact on tourism and trade is also set to grow. The airline facilitated R1.7 billion in tourism impact and R300 million in trade impact during 2023/24. These figures are forecast to reach R8.9 billion and R1.2 billion respectively by 2029/30.
“The Oxford Economics Report affirms the tangible return on investment from the State’s support of SAA,” said Lamola. “It validates our five-year Corporate Plan and highlights SAA’s strategic role in connecting South Africa to global markets.”
Having emerged from business rescue in 2021, SAA has expanded its fleet to 16 aircraft and its network to 16 destinations. Plans are underway to broaden this footprint into Europe, North America, and East Asia.
“This revival is about more than profits,” Lamola added. “It ensures South Africa remains a vital player in global trade and tourism while contributing to the upliftment of the continent.”
The report underscores SAA’s significance as a catalyst for economic activity, strengthening its position as a premium international carrier and a key contributor to South Africa’s economic resilience.