The African Development Bank Group has unveiled a continent-wide aviation financing platform aimed at unlocking investment and transforming Africa’s rapidly growing air travel demand into sustainable profitability.
The initiative, known as the Integrated Aviation Transformation Program (IATP), was highlighted during the Airlines, Capital and Connectivity Forum held in Nairobi on February 25–26 in partnership with the African Airlines Association.
The platform is designed to address long-standing structural challenges in Africa’s aviation sector, including high costs of capital, fragmented regulations, infrastructure shortages and limited access to long-term financing.
According to the Bank, the programme seeks to align policy reforms, innovative financing tools and project execution under a single framework capable of attracting private, institutional and concessional investment into aviation projects across the continent.
The forum brought together airline executives, regulators, investors, manufacturers and development partners to examine how the new platform can help modernise Africa’s aviation ecosystem and strengthen regional connectivity.
Mike Salawou, Director for Infrastructure and Urban Development at the African Development Bank, said Africa’s aviation demand outlook remains among the strongest globally but investment readiness and sector capacity have lagged.
The programme aims to de-risk major investments, support pilot transactions and rebuild confidence among commercial and institutional financiers interested in aviation infrastructure.
Industry leaders also highlighted the scale of Africa’s untapped aviation market. The Secretary General of the African Airlines Association, Abderahmane Berthé, noted that while Africa accounts for nearly 18 percent of the world’s population, it represents less than three percent of global air traffic.
Despite growing demand, profitability across the sector remains limited. Data from the International Air Transport Association shows African airlines are expected to post net profit margins of only 1–2 percent, compared with a projected global average of 3.9 percent in 2026.
High fuel costs, heavy taxation, infrastructure gaps and incomplete market liberalisation continue to constrain performance across the continent’s aviation industry.
Participants also stressed the need to fully implement the Single African Air Transport Market initiative to improve intra-African connectivity. Currently, only about a quarter of Africa’s air travel occurs within the continent, forcing many passengers to transit through hubs outside Africa.
The forum concluded with calls for stronger coordination between governments, airlines, regulators and investors to ensure aviation becomes a key driver of trade, tourism and economic integration across the continent.
