The African Development Bank Group has unveiled a continent-wide aviation financing initiative aimed at transforming Africa’s rapidly growing air transport demand into sustainable connectivity, stronger competitiveness and long-term profitability for the sector.
The initiative, known as the Integrated Aviation Transformation Program (IATP), was a central focus of discussions at the Airlines, Capital and Connectivity Forum held in Nairobi on February 25–26, 2026. The event was convened by the African Development Bank in partnership with the African Airlines Association and brought together airline executives, policymakers, investors, regulators, manufacturers and development partners to examine how Africa can unlock greater value from its aviation industry.
Africa is projected to become the world’s fastest-growing aviation market, driven by rapid urbanisation, a youthful population and the expansion of the middle class. Yet industry leaders at the forum noted that the continent continues to face structural challenges that limit aviation growth and financial sustainability. These include high capital costs, fragmented regulatory frameworks, infrastructure gaps and limited access to long-term financing.
Through the IATP platform, the African Development Bank aims to address these constraints by aligning policy reforms, innovative financing tools and project implementation within a coordinated investment framework. The programme is designed to mobilise private, institutional and concessional capital while helping to de-risk priority aviation investments and accelerate project delivery across the continent.
Speaking at the opening of the forum, the Bank’s Director for Infrastructure and Urban Development, Mike Salawou, said Africa’s aviation demand outlook remains among the strongest globally, but the continent must strengthen its investment readiness and supply-side capacity to match that growth.
Industry representatives also highlighted the scale of Africa’s untapped aviation potential. According to Abderahmane Berthé, Secretary General of the African Airlines Association, the continent accounts for nearly 18 percent of the global population but less than three percent of worldwide air traffic, largely due to structural and regulatory barriers rather than weak demand.
Despite the growth potential, the financial outlook for African airlines remains modest. Data from the International Air Transport Association suggests African carriers are expected to record net profit margins of about one to two percent, below the projected global average of 3.9 percent in 2026. Industry stakeholders cited high fuel costs, heavy taxation, limited hub infrastructure and incomplete liberalisation as major factors affecting profitability.
Connectivity within the continent also remains limited, with intra-African traffic accounting for only about a quarter of total air travel. Many passengers travelling between African countries are still required to transit through hubs outside the continent, a situation stakeholders say underscores the urgency of fully implementing the Single African Air Transport Market.
Representing the African Union Commission, Eric Ntagengerwa said aviation reform is essential for strengthening economic integration, sovereignty and competitiveness across the continent. He noted that the Single African Air Transport Market has been designated as the African Union’s theme for 2027, highlighting its strategic importance to regional connectivity.
Over the course of the two-day forum, participants examined strategies to strengthen airline bankability, expand cargo and logistics networks, promote climate-aligned aviation development and build critical skills across the sector. Case studies from countries including Nigeria, Kenya and Ethiopia illustrated how continental aviation objectives could translate into national policy reforms and near-term investment opportunities.
Senior Adviser to Nigeria’s aviation ministry, Samuel Obafemi Bajomo, emphasised that pro-investment policy frameworks are essential to improving connectivity and unlocking aviation’s broader economic impact across Africa.
Participants concluded that the continent’s aviation growth trajectory is both real and accelerating. However, they stressed that the next phase will depend on effective execution—aligning regulatory reforms, infrastructure development and investment flows to ensure aviation becomes a long-term driver of trade, tourism and inclusive economic growth across Africa.
