The commercial viability of most African carriers continues to be undermined by delayed repatriation of ticket and cargo revenues, choking cash flow and threatening connectivity across the continent, a policy paper released by the African Airlines Association (AFRAA) warns.
“Blocked funds are no longer a peripheral finance issue—they have become a strategic constraint on Africa’s connectivity, trade, tourism and economic integration,” Maureen Kahonge, AFRAA’s director of commercial and communications, told Aviation Week. “When airlines are unable to repatriate legitimately earned revenues, their ability to sustain operations, invest in new routes and maintain reliable air services is compromised.”
As of the end of October 2025, ten countries accounted for 89% of the global total of blocked airline funds, seven of them in Africa. Algeria topped the list with $307 million, followed by the XAF Zone (Central Africa) ($179 million), Mozambique ($91 million), Angola ($81 million), Eritrea ($78 million), Zimbabwe ($67 million) and Ethiopia ($54 million).
“This is happening at a time when African carriers already operate on wafer-thin margins, earning just $0.40 per passenger against a global average of $4.50, according to IATA’s updated estimates in light of the Iran crisis,” Kahonge said.
Kahonge said funds become trapped due to foreign exchange controls, currency shortages and other regulatory barriers, in contravention of obligations set out in bilateral air services agreements.
“What is needed now is decisive, coordinated action,” she said. “Governments must honor the repatriation commitments already enshrined in their bilateral air services agreements, establish clear and time-bound repayment schedules and give airlines genuine priority in foreign exchange allocation.”
Kahonge said regional economic communities, the African Union Commission (AUC) and financial partners such as Afreximbank and the African Development Bank have a critical role to play in backing structural solutions, including regional payment systems like the Pan-African Payment and Settlement System and a dedicated facility to support countries facing foreign exchange constraints.
The stakes are high for African economies as well as airlines. The continent recorded 81.3 million international tourist arrivals in 2025, up 7.8% year over year, with tourism receipts reaching $46.7 billion, a 7% increase, according to UN Tourism. Airline industry employment rose to 3.07 million in 2024, up from 2.97 million the previous year, IATA figures show.
African airlines recorded profit per passenger of just $1.30 in 2025, against a global average of $7.90, according to IATA—and with significant dollar-denominated costs, carriers depend on timely repatriation to meet their obligations.
AFRAA is pursuing a four-pillar response: advocacy on aviation’s GDP contribution, lobbying alongside the AUC and IATA, negotiation on forex allocation and legacy debt, and collaboration with local aviation stakeholders.
“The resolution of blocked funds ultimately depends on political will,” Kahonge concluded. “Aviation is too important to Africa’s trade, tourism and integration agenda to be left waiting.”
