SAA's economic impact to reach R32bn by 2030, report reveals

Source: Alan Wilson via Wikimedia Commons

The study, which examines the airline's core economic impact, shows that in the 2023/24 financial year, SAA's gross value add to the GDP is R9.1bn.

The report highlights the direct economic activity generated by SAA, including its influence on tourism, international trade, procurement spending, and the consumer economy supported by employee wages and those in the supply chain.

The study, commissioned by the SAA group, which includes SAA Technical, Air Chefs, SAA Cargo, and SAA Voyager, underscores the airline's broader economic role.

Oxford Economics is a London-headquartered consulting leader in global economic forecasting and econometric analysis. Its more than 300 full-time economists and analysts track, analyse and model country, industry, and city-level trends to enrich clients' understanding of the implications of the economic outlook for their decision-making.

Utilising a methodology that distils downstream and related economic benefits that SAA is a catalyst of, the study established that airline Gross Value Added to South Africa will more than triple over the next five years, rising from R9.1bn to R32.6bn by 2029/30.

The study also shows that the SAA group’s operations will support 86,700 jobs by 2029/30, up from 25,000 jobs in 2023/24.

Furthermore, the SAA Group’s operations stimulated fiscal revenues (tax) of R1.1bn in 2023/24, a figure that is projected to rise to R4.4bn in 2029/30.

Tourism, trade, and fiscal contributions

The report estimates the SAA Group’s tourism impact at R1.7bn in 2023/24, rising to R8.9bn in 2029/30.

The SAA Group’s trade impact in 2023/2024 amounted to R300m, which is forecast to quadruple to R1.2bn in 2029/30.

SAA Interim CEO, Professor John Lamola, says: "The Oxford Economics Report affirms that the State’s contribution as the sole shareholder in SAA has not been without a tangible return on investment (ROI).

"In turn, as the study ventures into a forecast of future impacts as derived from SAA’s growth and expansion plans. It serves as an independent validation of SAA’s current five-year Corporate Plan."

SAA emerged from business rescue (BRP) in 2021 with just six aircraft and five routes. The airline currently flies 16 aircraft and will take delivery of an additional seven during calendar year 2025.

The current footprint of 16 destinations is modelled to support the extension of the route network into Europe, North America and East Asia as SAA maintains its strategic brand as a premium international network carrier.

“It is heartening to know that the impact of SAA dedicated staff goes beyond this organisation. It is helping build the South African economy, which ultimately impacts the upliftment of the African continent,” Lamola adds.