CAAB reports record revenue, expands strategic initiatives
Otlarongwa Kgweetsi | Monday January 20, 2025 12:43
This represents a 46% increase from the previous year’s P181 million and surpasses the pre-pandemic high of P176 million achieved in 2019–2020.
The announcement highlights the resilience of Botswana’s aviation sector and CAAB’s strategic focus on recovery and growth following the challenges of COVID-19.
Chairman Basimane Bogopa attributed the authority’s recovery and growth to strong governance and strategic planning.
“Our revenue performance and operational progress are testaments to CAAB’s commitment to advancing Botswana’s aviation sector. “We remain focused on initiatives that will not only improve financial sustainability but also enhance the overall experience for passengers and industry stakeholders,” Bogopa said.
According to the aviation parastatal’s recently released results, passenger traffic across the country’s four international and two domestic airports, witnessed steady growth in the 2023–2024 financial year, increasing by 12.9% year-on-year. By the end of the financial year, volumes had recovered to within 11.4% of pre-pandemic levels.
The resurgence in passenger numbers reflected increased confidence in air travel, boosted by CAAB’s efforts to enhance airport operations and customer experience, directors said.
Air cargo operations also contributed significantly to revenue growth. Cargo volumes increased by 16.9% compared to the previous year, bolstered by major imports such as livestock from the United States and Australia.
Directors said the Authority plans to further capitalise on this growth by managing the cargo terminal at Sir Seretse Khama International Airport starting in the 2025–2026 financial year. This move is expected to enhance efficiency and support Botswana’s aspirations to become a regional transport hub.
CAAB’s revenue performance comes as part of its five-year transformation strategy aimed at fostering financial sustainability and operational excellence. This strategy includes the certification of Botswana’s international airports to meet global safety standards. Following the certification of Sir Seretse Khama International Airport in 2022, Maun International Airport was certified in February 2024. Certification of Kasane International Airport is scheduled for later this year, with Francistown’s airport to follow in the 2024–2025 financial year.
In addition to financial achievements, CAAB prioritised aviation safety and security as key components of its strategy. After achieving an 80.1% Effective Implementation score in an ICAO audit in 2022, efforts are underway to improve the current aviation security score of 75.98%, with CAAB planning to voluntarily invite an ICAO security audit to guide future enhancements.
Whilst revenue growth has been a highlight, CAAB has also focused on workforce development.
Initiatives such as service recognition awards, motivational talks, and a robust internship programme have been introduced to foster employee engagement and address skills shortages in the aviation sector.
After it evolved into a parastatal from a government department in 2009, CAAB quickly turned into a 'problem child' of the parastatal sector. Dogged by challenges around its organisational restructuring, human resources and stagnant revenues, the CAAB also suffered disgruntlement and demotivation among employees, high staff turnover, and overall sub-optimal performance.
At one point in 2020, the CAAB ran out of cash and decided to cease operating on December 31, which would force the closure of the country’s airspace. Government rescued the situation with a last-minute cash injection.