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    Home»African Airlines»Africa urged to turn aviation reforms into economic growth
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    Africa urged to turn aviation reforms into economic growth

    Nandi BikoBy Nandi BikoAugust 7, 20264 Mins Read
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    Africa urged to turn aviation reforms into economic growth
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    A plane taking off

    Africa is under renewed pressure to move beyond years of
    declarations on aviation liberalization and implement an open skies policy.

    This, experts say could significantly lower the cost of air
    travel, boost trade and accelerate the continent’s economic integration.

    According to them, Africa has already laid the legal and
    policy foundation for a single aviation market, but slow implementation is
    denying businesses, tourists and investors the benefits of seamless air
    connectivity.

    The call comes weeks ahead of the Africa Mindset Reset Forum
    scheduled for August 25-26 in Kigali, Rwanda.

    The forum brings together policymakers, regulators, airlines
    and development institutions will meet under the theme “Accelerating
    African Economic Integration Through Open Skies.”

    Participants will include representatives from the AfCFTA
    Secretariat, the African School of Governance, the African Development Bank,
    the African Civil Aviation Commission (AFCAC), RwandAir, the African Airlines
    Association (AFRAA) and leaders from Africa’s entrepreneurship ecosystem.

    The message from industry players is clear: Africa’s skies
    should become the fastest route for trade, tourism and talent rather than one
    of the continent’s biggest barriers to growth.

    Despite the rapid expansion of trade under AfCFTA,
    travelling between many African cities remains expensive, time-consuming and
    often requires passengers to transit through Europe or the Middle East because
    of limited direct flights.

    According to the International Air Transport Association
    (IATA), taxes and infrastructure charges make air travel in Africa about 15 per
    cent more expensive than the global average, discouraging demand and limiting
    the continent’s competitiveness. 

    Rather than relying on high ticket taxes to raise revenue,
    stakeholders are urging governments to stimulate demand through lower costs,
    arguing that increased passenger traffic, tourism and cargo volumes would
    ultimately generate higher economic returns.

    They propose time-bound incentives for new intra-African
    routes, transparent service agreements between airports and airlines, and
    public disclosure of taxes and charges on every route to encourage competition
    and improve affordability.

    The reforms would also include coordinated
    “connectivity corridors” linking selected African cities, where
    governments harmonise airport slots, security procedures and border technology
    while reinvesting part of aviation levies into navigation systems, digital
    border controls and airport infrastructure.

    Industry experts argue that aviation reforms must extend
    beyond passenger travel.

    Dedicated night cargo operations, predictable freight
    charges and bonded “green lanes” could transform Africa’s
    fast-growing e-commerce sector while enabling agricultural exporters and
    pharmaceutical manufacturers to move goods across the continent more
    efficiently.

    Simplifying visa processes through e-visas and smarter
    border management would further reduce travel friction, improve aircraft
    occupancy and widen governments’ tax base through increased economic activity.

    The push for implementation also aligns with the Single
    African Air Transport Market (SAATM), the African Union’s flagship aviation
    initiative under Agenda 2063, designed to liberalise air transport across the
    continent. 

    IATA estimates that opening markets among just 12 key
    African countries could create 155,000 additional jobs and generate $1.3
    billion in annual GDP, highlighting the significant economic gains from
    improved connectivity.

    Beyond tourism, aviation has become an increasingly
    important economic pillar.

    IATA estimates the sector currently contributes about $75
    billion to Africa’s GDP and supports more than 8 million jobs, with passenger
    demand expected to grow by about 4.1 per cent annually over the next two decades,
    making Africa one of the world’s fastest-growing aviation markets.

    However, the industry continues to face structural
    challenges that threaten its growth.

    Rwanda’s Minister for Trade and Industry, Antoine Kajangwe,
    said AfCFTA can only achieve its full potential if African businesses are
    connected through affordable and reliable air transport.

    “We must work towards affordable, frequent and reliable
    air connectivity that allows a manufacturer in Kigali to ship cargo across
    Africa without excessive costs, unnecessary delays or complicated routes,”
    he said.

    Tsotetsi Makong of the AfCFTA Secretariat said continental
    agreements alone would not transform African economies unless governments fully
    implement them.

    “Those rules must be domesticated, brought to life and
    translated into practical benefits for African people and businesses,” he
    said.

    Airline executives also highlighted financial obstacles that
    continue to undermine connectivity.

    Raphael Kuuchi of the African Airlines Association said
    nearly $800 million (Sh103.2 billion) in airline revenues remain trapped in
    about 14 African countries, preventing carriers from repatriating earnings
    needed to finance aircraft leases, fuel purchases and route expansion.

    He warned that airlines cannot sustainably maintain services
    when revenues earned in one country are used to subsidise operations elsewhere.

    IATA has repeatedly cautioned that blocked airline funds
    force carriers to reduce flight frequencies, suspend routes or raise fares,
    ultimately weakening tourism, trade and investment. 

    The association estimates Africa accounts for the majority
    of airline revenues trapped globally due to foreign exchange restrictions and
    regulatory barriers. 



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