The International Air Transport Association (IATA) has raised concerns over $950 million in airline revenues trapped in African countries, accounting for 57% of the global total of aviation funds hindered by foreign exchange restrictions. IATA Director-General Willie Walsh, speaking at the African Airlines Association’s Annual General Assembly in Cairo, called for urgent intervention to prevent widespread disruption in air travel and its associated economic impacts.
“If airlines cannot repatriate their revenues, they cannot sustain service. Economies will suffer if connectivity collapses,” Walsh stated.
Nigeria’s Progress and Regional Challenges
Nigeria, once the largest contributor to the crisis, had $850 million in blocked airline funds by mid-2023 due to restrictive currency policies. This prompted some major carriers, including Emirates, to suspend operations in the country in 2022. However, recent measures have resolved 98% of Nigeria’s blocked funds, marking significant progress.
Despite this improvement, over $300 million in airline revenues remain blocked across nations using the Central and West African CFA Francs. These financial hurdles have forced airlines to scale back services or halt operations entirely in these regions, straining local economies and limiting connectivity.
Additional Struggles in Africa’s Aviation Industry
IATA also highlighted broader issues plaguing Africa’s aviation sector, including elevated operational costs, inadequate airport infrastructure, and safety challenges. Although the continent is home to 18% of the global population, it contributes just 3% to global GDP and represents only 2% of worldwide air transport activity.
Safety has seen gradual improvements, but Walsh emphasized the importance of wider adoption of the IATA Operational Safety Audit (IOSA) registry to enhance reliability and efficiency. “Airlines on the IOSA registry outperform their peers globally. Africa has made progress, but more work remains,” Walsh noted.
Encouraging Developments and Future Plans
Africa has made strides in reducing blocked funds, achieving a 28% decline since December 2023. Walsh called for increased collaboration between governments, airlines, and international organizations to fully resolve the crisis. He urged African carriers to actively participate in initiatives like the Global Aviation Data Management (GADM) program to further improve safety standards.
“Smoother repatriation of funds is essential not just for airlines but for the economies they support,” Walsh concluded, emphasizing the critical link between a robust aviation sector and economic stability across the continent.
