8.1.2 Aerospace and Defence Industry: African context

Despite the demand in the defense industry being relatively stable and the space industry experiencing increased opportunities, primarily in satellite broadband internet access, the pandemic led to a breakdown of many essential A&D supply chains. The challenge is accentuated as many suppliers serve both commercial aerospace and defense, and any spill over from the commercial side could leave defense OEMs vulnerable with regard to sourcing critical parts for their programs and platforms.

It is believed that in 2021 A&D companies are likely to shift toward transforming supply chains into more resilient and dynamic networks and collaborate with regional players to build capabilities and shift manufacturing capacity when needed in order to manage business disruptions. In a recent survey conducted by Deloitte, 72% of industry executives said they are investing in supply chain ecosystems to leverage external alliance partners7 .

This new trajectory in the global value chains of A&D, places CAV in an advantages position, to focus on strengthening capabilities and diversification of tier suppliers located at the village, through technological developments, such as:

• Advanced aerial mobility (AAM): The technology for AAM is already being elaborated by industry partners and government agencies like the National Aeronautics and Space

Administration (NASA) and the Federal Aviation Administration (FAA), and industry players are focusing on safely transitioning AAM into the daily commute globally • Electric propulsion: As technology evolves rapidly, several companies globally are developing electric propulsion systems, which could reduce carbon emissions, make flights quieter, and decrease costs. Apart from large aerospace propulsion companies, there are various technology start-ups also involved in the development of electric propulsion engines.

8.1.2 Aerospace and Defence Industry: African context

COVID-19 has devastated African economies and brought air connectivity across the continent to a virtual standstill. The economic consequences resulting from a disconnected continent are severe, with millions of jobs and livelihoods at risk in family-run enterprises and large corporations along the entire travel and tourism value chain.

Air transport supported 7.7 million jobs and $63 billion in African economic activity. That is 2.2% of all employment and 2.7% of all GDP in African countries in 20188.Every person directly employed in the aviation sector and in tourism made possible by aviation supported another 16.5 jobs elsewhere in Africa. Similarly, $6 of economic activity was

7 2020 Deloitte and MAPI smart manufacturing ecosystem study. 8 https://aviationbenefits.org/media/167129/abbb20_africa.pdf