IATA Urges African States to Release Blocked Airline Funds

The International Air Transport Association (IATA) has called on African governments to address the increasingly acute problem of blocked airline funds. According to IATA, African airlines continue to experience varying degrees of difficulty repatriating revenues earned in most countries on the continent, especially Angola, Algeria, Eritrea, Ethiopia, Libya, Mozambique, Nigeria, Sudan and Zimbabwe. The appeal came at the opening of the recent African Airlines Association (AFRAA) general assembly in Kigali, Rwanda. 

“Practical solutions are needed so that airlines can reliably repatriate their revenues, said IATA director general Alexandre de Juniac. “It’s a condition for doing business and boosting connectivity.”

Elijah Chingosho, the outgoing Secretary General of AFRAA, said up to $1 billion remains blocked, affecting the industry’s capacity to reinvest. 

According to RwandAir CEO Chance Ndagano, the habit of blocking funds has affected the national carrier’s plans to expand across the Africa.

“Some governments, through their central banks, often don’t allow airlines to repatriate revenue, especially when earned in dollars, posing a challenge to airliners,” he said. Neverthless, he said he remains optimistic about his airline’s capacity to expand its global footprint.

“Our growth will always be driven by demand,” he added.

Highlighting the African airlines’ wider economic struggles, IATA vice president for Africa Raphael Kuuch noted the industry will lose $1.50 for every passenger it carries this year.

Aviation currently supports 6.8 million jobs and contributes $72.5 billion in GDP to African governments, according to IATA. The association expects passenger demand to expand by an average of 5.7 percent annually over the next 20 years.

Separately, AFRAA has appointed Air Burkina CEO Abderahmane Berthe as its new secretary general. He replaces Elijah Chingosho, who has served in the role for nearly 16 years.