The Civil Aviation Authority of Botswana (CAAB) has reported a record revenue milestone, largely driven by a significant increase in passenger and aircraft traffic, coupled with a 5 percent rise in aeronautical fee charges.
According to CAABโs 2023โ2024 annual report, the Authority achieved a 46 percent revenue growth during the 2023/24 financial year, reaching P265 million, up from P181 million in the 2022/23 financial year.
CAAB CEO Bao Mosinyi described this as the highest revenue ever recorded in the Authorityโs 15-year history.
โThe performance is most noteworthy as it comes on the backdrop of a revenue dip to P62 million at the peak of the pandemicโa drop of over 65 percent compared to pre-COVID figures of P176 million,โ Mosinyi noted in the report. โThe growth in revenue was mainly attributable to a significant increase in passenger and aircraft traffic as the global aviation industry continues on a steady recovery path, along with a 5 percent increase in aeronautical fee charges.โ
Enroute navigation charges accounted for 54 percent of total aeronautical revenues. Passenger security charges, introduced in February 2023, also made a significant contribution to passenger service revenues, providing CAAB with a new revenue source.
โNon-aeronautical revenue contributed about 10 percent of the Authorityโs financial performance,โ Mosinyi added. โIn the coming months, we will be exploring options and opportunities to grow this revenue stream.โ
Despite the increase in revenue, Mosinyi acknowledged that the Authority continues to rely on government support through annual subventions and development funds.
During the review period, CAAB received additional funding for maintenance, raising the subvention to P137.5 millionโa 6 percent increase from the previous year. Development funding under the governmentโs two-year Transitional National Development Plan (2023โ25) amounted to P548 million, with projects under this plan currently at various stages of delivery.
Mosinyi also revealed that the CAAB board has approved a new strategy for the 2024โ2029 period, aimed at transforming the Authority into a high-performance organisation.
โThe strategy seeks to substantially increase internally generated revenues to P500 million by the end of the 2028/29 financial year while enhancing profitability by managing the cost-to-income ratio,โ Mosinyi stated. The plan also focuses on improving the implementation of safety and security-critical elements as defined by the International Civil Aviation Organisation (ICAO).
CAAB board chairperson, Basimane Bogopa, emphasised the importance of aligning the Authorityโs structure with its strategic objectives.
โIn the next financial year, it is envisaged that the current organisational structure will be reviewed and optimised to ensure alignment with the strategy and organisational objectives,โ Bogopa said. โA world-class, efficiently operating aviation authority will make Botswana more marketable, attracting international airlines and other aviation services to the country.โ
Bogopa added that a leaner, more appropriately resourced organisational structure is expected to deliver benefits that will support the attainment of CAABโs mission and vision.
