According to IATA, the cost of doing aviation business in Africa is approximately 15% higher than the global average, largely due to taxes and charges imposed by governments and infrastructure providers.
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African governments are being urged to treat aviation as a cornerstone of economic development, with the International Air Transport Association (IATA) warning that the sector holds significant untapped potential to drive trade, tourism and regional integration across the continent.
Speaking at the Focus Africa Conference in Addis Ababa on Wednesday, IATA outlined a comprehensive strategy aimed at strengthening the aviation sector through improved safety, reduced costs, enhanced ease of doing business and a stronger focus on sustainability.
“Aviation is economic infrastructure for Africa. Its value lies in the long-term benefits it delivers. An aviation strategy focused on safety, cost-competitiveness, energy security/sustainability, and ease of doing business will create jobs, enable trade, support tourism, and further regional integration,” said Kamil Alawadhi, IATA’s regional vice president for Africa and the Middle East.
“The prosperity this generates will allow governments to push forward social and economic development more durably than any tax that might be collected from travelers.”
Despite progress in recent years, IATA highlighted that aviation safety in Africa still lags behind global standards.
While the accident rate improved significantly from 12.13 per million sectors in 2024 to 7.86 in 2025, it remains well above the global average of 1.32. The association called for greater implementation of international safety standards, improved publication of accident reports and wider adoption of global safety audit programmes.
Cost competitiveness also remains a major challenge. According to IATA, the cost of doing aviation business in Africa is approximately 15% higher than the global average, largely due to taxes and charges imposed by governments and infrastructure providers.
The organisation pointed to excessive fees such as API-PNR charges, noting that some African countries impose rates far above global norms, distorting ticket prices and limiting connectivity.
In response, IATA is advocating for the full implementation of a December 2025 decision by ECOWAS to eliminate certain aviation taxes and reduce others by 25%. It also warned against proposed shifts toward source-based taxation of airlines, arguing that this could lead to double taxation and further complicate cross-border operations.
Ease of doing business is another critical pillar identified by IATA. One of the most pressing issues is the blocking of airline revenues by governments, which undermines airline operations and investor confidence.
As of March 2026, African countries accounted for the largest share of blocked airline funds globally, totalling $774 million. Countries such as Algeria, Mozambique and Angola were highlighted as key contributors to this backlog.
“Given the scale of funds blocked in Algeria, urgent and decisive government action in Algeria is essential,” said Alawadhi.
“But our efforts to engage with the Ministry of Trade and Export Promotion and the Central Bank have been met with little responsiveness and airlines continue to face delays despite complying with burdensome requirements.”
Visa restrictions were also flagged as a barrier to growth, with nearly half of intra-African travel still requiring visas prior to departure. IATA noted that easing these requirements could significantly boost tourism, improve route resilience and strengthen regional economic ties.
On sustainability, IATA emphasised the opportunity for Africa to position itself as a global leader in sustainable aviation fuel (SAF) production.
The continent has the potential to produce up to 106 million tonnes of SAF feedstock by 2050, leveraging agricultural and forestry waste as well as municipal solid waste. This could not only support global decarbonisation efforts but also create jobs and enhance energy security.
Additionally, IATA called on African governments to engage more actively with global climate frameworks such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), noting that the continent could generate significant climate finance through the production of eligible emission units.
With the right policy framework and investment, IATA said the sector could play a transformative role in unlocking Africa’s economic potential and driving sustainable development across the continent.
BUSINESS REPORT