IATA reveals $1.68 billion trapped in African airlines’ funds, impacting connectivity

During the African Airlines Association 55th Annual General Assembly in Uganda, the International Air Transport Association (IATA) disclosed that $1.68 billion of airlines’ funds are currently trapped in Africa as of September 2023, contributing to a global total of $2.36 billion. Kamil Alawadhi, the Regional Vice-President for Africa and the Middle East, highlighted the negative impact of this development on the growth of foreign airlines operating on the continent.

Alawadhi mentioned that airline operators have been actively engaging with governments across Africa to facilitate the release of these trapped funds. The figures, as of September, reveal the severity of the issue, with $1.68 billion representing the African share of the global total.

Describing the situation as alarming, Alawadhi emphasized the devastating impact on connectivity, indicating the need for urgent resolution.

Earlier in November, it was reported that the Central Bank of Nigeria had initiated the clearance of a $10 billion forex backlog to commercial banks and airline operators. While this move addresses some aspects of the financial challenges, the broader issue of trapped funds continues to be a significant concern for the aviation industry in Africa and beyond.