IATA: Unlocking Africa’s Aviation Potential
The International Air Transport Association (IATA) has issued a compelling call to action for African governments, urging them to recognize the transformative power of aviation. By addressing key challenges and implementing strategic policies, Africa can unlock the full potential of its aviation sector, driving economic growth, creating jobs, and fostering social development.
Somas Appavou, IATA’s Regional Director for External Affairs in Africa, emphasized the vital role of aviation in the continent’s economy. The sector currently contributes USD 75 billion to GDP and supports 8.1 million jobs. With a projected growth rate of 4.1% over the next 20 years, the aviation market is poised for a remarkable expansion, doubling in size by 2044. However, Appavou stressed that the true value of a thriving aviation industry lies in its impact on social and economic progress.
To harness this potential, IATA has outlined three crucial priorities for African governments: resolving the issue of blocked airline funds, enhancing aviation safety, and reducing the cost burden on airlines.
Blocked Funds: A Major Impediment to Growth
A significant obstacle facing airlines operating in Africa is the USD 1 billion in revenues currently blocked from repatriation by 26 African governments. This represents a staggering 73% of the total global blocked funds, hindering airlines' ability to maintain international connectivity. As a result, airlines are often forced to reduce flight frequencies or suspend routes altogether, impacting tourism, trade, and overall economic activity. IATA urges governments to uphold their international obligations and ensure the seamless repatriation of airline revenues.
Safety First: Closing the Gap in Global Standards
While acknowledging improvements in African aviation safety, IATA highlighted the need to close the gap in the implementation of global safety standards. Africa’s safety performance lags behind the global average, with a SARPS implementation rate of 59.49% compared to the global average of 69.16% and the target of 75%. Runway excursions were identified as a prevalent accident type in 2024, prompting IATA to call for renewed efforts to improve runway safety and timely accident reporting.
Reducing the Cost Burden: Stimulating Demand and Growth
Taxes and charges on air travel in Africa are currently 15% higher than the global average, suppressing demand and hindering economic development. IATA emphasized the catalytic role of aviation in stimulating job creation and economic activity. Reducing the cost burden on airlines through lower taxes and charges can unlock significant growth potential. Furthermore, IATA advocates for greater coordination between governments and the industry to ensure cost-efficient and scalable infrastructure development.
Focus Africa: Turning Potential into Prosperity
IATA’s Focus Africa initiative, launched in 2023, underscores the organization’s commitment to working collaboratively with governments, industry stakeholders, and development partners to address these challenges. By focusing on safety, affordability, and connectivity, Focus Africa aims to transform the aviation sector into a powerful engine for job creation, economic growth, and prosperity across the continent.
CORSIA: A Unified Approach to Emissions Reduction
IATA also urged African governments to support the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). With 20 African states already participating in the voluntary phase, CORSIA represents a globally agreed-upon mechanism to address CO2 emissions from international aviation. IATA emphasized the importance of a unified approach, cautioning against fragmented national or regional taxes that could undermine the scheme’s effectiveness.
Economic Implications: A Case for Tax Reduction
Computational analysis reveals the substantial economic benefits that could be achieved by reducing aviation taxes. A 15% tax reduction could generate an immediate USD 11.2 billion boost to GDP, creating 1.2 million jobs. Over 20 years, the cumulative benefits could reach a staggering USD 338.5 billion. Furthermore, considering multiplier effects on tourism and trade, the total economic impact could be even greater, reaching USD 15.5 billion in the first year alone.
A Call for Action: Investing in Africa’s Future
IATA’s message is clear: aviation is not a luxury but a vital economic and social lifeline for Africa. By prioritizing the key issues of blocked funds, safety, and cost reduction, African governments can unlock the transformative power of aviation, creating jobs, driving economic growth, and building a more connected and prosperous future for the continent.
