AfDB launches Africa-wide aviation investment platform
Africa’s aviation sector faces rapid demand growth but remains constrained by high capital costs, fragmented regulations, and infrastructure gaps.
Driving investment and connectivity
The two-day Airlines, Capital and Connectivity Forum, held in Nairobi on 25–26 February 2026 by AfDB in partnership with the African Airlines Association (AFRAA), brought together airline executives, transport ministers, regulators, investors, manufacturers, and development partners to explore how the IATP can translate rising demand into sustainable growth.
Mike Salawou, AfDB’s director for infrastructure and urban development, said: "While Africa’s aviation demand outlook ranks among the strongest globally, supply-side capacity and investment readiness have lagged. The IATP seeks to de-risk priority investments, support early pilot transactions, and restore confidence among commercial and institutional financiers."
AFRAA secretary general Abderahmane Berthé added: "Africa represents nearly 18% of the global population but accounts for less than 3% of worldwide air traffic, reflecting structural and regulatory barriers rather than weak demand."
Aviation as a growth engine
Keynote remarks delivered by Eric Ntagengerwa, head of transport and mobility at the African Union Commission, on behalf of Lerato Dorothy Mataboge, commissioner for infrastructure and energy, highlighted the role of aviation in sovereignty, integration, and competitiveness. He noted that the Single African Air Transport Market is the African Union Theme for the Year 2027.
Over the next two decades, one in four new global air travellers is expected to originate from Africa, driven by urbanisation, a growing middle class, and a youthful population. Yet, according to the International Air Transport Association (IATA), African airlines’ net margins are projected at only 1–2% in 2026, below the global average of 3.9%. Challenges include high fuel costs, heavy taxation, incomplete liberalisation, and limited hub infrastructure.
Translating policy into practical delivery
Forum discussions focused on strengthening airline bankability, climate-aligned aviation, cargo and logistics, skills development, and deploying innovative risk-sharing mechanisms under the IATP. Experiences from Nigeria, Kenya, and Ethiopia demonstrated how continental objectives can be converted into coordinated national reforms and near-term investment opportunities.
Samuel Obafemi Bajomo, senior adviser to Nigeria's aviation ministry, emphasised: "Forward-looking, pro-investment policy frameworks are critical to strengthening connectivity and unlocking Africa’s growth potential and positioning aviation as a catalyst for trade, tourism, and shared prosperity."
The Forum concluded that Africa’s aviation demand is real, accelerating, and irreversible. The priority now is execution, aligning policy, capital, and infrastructure to make aviation a durable driver of inclusive growth and regional integration.