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Open Skies Delays Keep Africa's Trade Costs High, Industry Leaders Warn

At a high-level working session ahead of the Africa Mindset Reset Forum in Kigali, participants found that while Africa has much of the legal framework needed to liberalise air travel, implementation, financing and political commitment remain major hurdles.

The Cost of Fragmented Skies

Rwanda's Minister for Trade and Industry Antoine Kajangwe said reliable air connectivity is critical to enabling businesses to access markets across the continent. "We must work towards affordable, frequent and reliable air connectivity that allows a manufacturer in Kigali to ship cargo across Africa without excessive costs, unnecessary delays or complicated routes."

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The African Civil Aviation Commission estimates Africa's aviation connectivity index at about 23 percent, with affordability identified as a major barrier to travel. According to the International Air Transport Association, taxes and infrastructure charges make air travel in Africa about 15 percent more expensive than the global average.

Blocked Revenues and Financial Pressure

A major concern raised during the session was the financial pressure facing African airlines. Raphael Kuuchi of the African Airlines Association said nearly $800 million in airline revenues remains blocked across about 14 African countries, restricting carriers' ability to repatriate earnings and reinvest in operations.

He warned that airlines cannot sustainably maintain routes when revenues earned in one market are used to finance operations elsewhere.

Outgoing IATA Director-General Willie Walsh said African airlines are "navigating turbulent economic skies, weighed down by operational costs that far outpace global averages." He pointed out that aviation fuel can be up to 30 to 40 percent more expensive in Africa than the global average due to supply chain bottlenecks and heavy local taxes.

Implementation Gaps Despite Policy Commitments

Tsotetsi Makong of the AfCFTA Secretariat said countries must move beyond adopting continental agreements to implementing them domestically. "Those rules must be domesticated, brought to life and translated into practical benefits for African people and businesses."

The discussions focused on the Yamoussoukro Decision, a landmark treaty designed to liberalise African air transport markets through expanded traffic rights. However, implementation has been slow and limited, with protectionism and fears of competition from stronger foreign airlines hindering progress.

RwandAir CEO Yvonne Manzi Makolo said additional taxes and charges can make intra-African flights significantly more expensive, with some fees accounting for almost half of ticket prices.

The Infrastructure and Investment Challenge

The African Development Bank's Lufeyo Banda said open skies would require investment beyond regulatory reform. "Open skies cannot be achieved through policy commitments alone. Financing, fleet modernisation, stronger institutions and improved connectivity must all be addressed together."

AFCAC has identified over 60 critical infrastructure gaps across 41 countries, ranging from ageing navigation systems to a lack of Maintenance, Repair and Overhaul facilities.

The Opportunity Cost of Inaction

Industry projections suggest that a fully operational Single African Air Transport Market could lower average airfares by 26 percent, add more than $1.4 billion annually to the continent's GDP and create nearly 100,000 new jobs in aviation and tourism.

Despite these projections, African carriers are struggling with a meagre 1.3 percent net profit margin, the lowest in the world, earning just $1.30 per passenger compared to the global average of nearly $8.00.

Kamil Al-Awadhi, IATA's regional vice president for Africa and the Middle East, said: "Without a domestic ecosystem that supports aviation, the agreement will remain grounded." He argued that open skies will remain a slogan unless African governments address visas, taxes, bilateral restrictions, airport costs and fuel security as a single system.

A Fragmented Patchwork Sky

Out of 55 African Union member states, 38 have signed the commitment to establish SAATM, but only 26 have signed the Memorandum of Implementation. This disparity creates a fragmented patchwork sky where the potential benefits of liberalisation remain largely unrealised.

Non-African airlines still dominate the intercontinental market, carrying 67.1 percent of traffic, and fifth-freedom rights account for only 22 percent of intra-African connectivity. Many governments continue to shield distressed state-owned airlines from competition, viewing liberalisation as a threat to national sovereignty rather than an economic enabler.

The Visa Barrier

Despite progress in some countries, nearly 75 percent of Africans still require a traditional visa to travel within the continent, neutralising the benefits of any open-skies policy.

"If Ethiopian can fly to Lagos every day, but Ethiopians cannot get visas, then SAATM has failed in practice," Al-Awadhi said. He noted that the system has to include air rights, visas, airport capacity, equal rules and fair treatment for all 54 African countries.

A Path Forward

To break the deadlock, AFCAC has launched the Pilot Implementation Project involving 18 proactive states, including Nigeria, Ethiopia and Kenya, to demonstrate the tangible benefits of a truly liberalised market.

Participants also proposed an "Africa Zone" of countries offering visa-free or visa-on-arrival access to improve business and tourism mobility.

Despite the challenges, the Africa Mindset Reset Forum, scheduled for August 25-26 in Kigali, is expected to focus on turning policy commitments into practical initiatives. The central challenge, participants said, is no longer developing frameworks but ensuring governments implement them.


With reporting from New Times Rwanda, African Development Bank, IATA, The East African and allAfrica.com.

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