How Africa Can Unlock Aviation Growth Through Policy Reforms and Open Skies

(AFRICA) African aviation is entering 2025 with a rare window to expand air links, cut costs, and grow jobs as governments push new policy reforms, Open Skies agreements, and deeper cooperation under the African Union’s Single African Air Transport Market, or SAATM. Industry groups say the sector already adds $75 billion to GDP and supports 8.1 million jobs, with traffic projected to grow 4.1% a year through 2044. Yet progress hangs on how quickly states implement liberal rules, align safety oversight, and resolve roadblocks such as blocked airline revenues that restrict operations and reduce connectivity.

Passenger demand is rising. From January to April 2025, Africa posted a 9% increase in passenger traffic compared with the same period in 2024, outpacing global averages, according to industry data. Airlines have moved beyond pre-pandemic levels, with a 74.5% load factor in 2024, and many carriers forecast steady gains this year.

At the same time, cargo demand has fallen by 5.5% year-to-date, a reminder that uneven infrastructure and high costs continue to weigh on performance.

SAATM Growth and Role

SAATM membership expanded to 37 countries by mid-2025, covering more than 80% of the continent’s market. The African Union-backed program aims to open intra-African skies by removing capacity, frequency, and pricing limits on eligible routes, and by putting in place shared rules for fair competition and consumer protection.

Implementation tools, including a SAATM Handbook, are available through the African Union and industry partners. According to IATA’s SAATM overview, full and faithful rollout remains the key step to unlock broader gains in trade, tourism, and investment.

Notable Policy Signals

A major policy signal came from South Africa, where the government released a Draft Comprehensive Civil Aviation Policy on May 23, 2025, and later extended public comment to July 11, 2025. The document maps reforms in safety oversight, regulation, infrastructure, inclusivity, and the future of state aviation assets.

The draft:
– Prefers targeted bilateral Open Skies agreements over bloc-wide external deals to protect national interests while still growing traffic.
– Seeks to finalize the policy as a white paper by the end of 2025 and to complete supporting frameworks in 2026.

Details are available through the South African Department of Transport.

Financial Blockages: A Major Constraint

Money trapped in several jurisdictions is a pressing concern. As of May 2025, airlines reported about $1 billion in blocked funds in African markets, representing 73% of global blocked balances.

Carriers warn that delayed repatriation forces them to:
– Reduce frequencies
– Switch to smaller aircraft
– Suspend routes

These adjustments ultimately hurt travelers, trade, and tax revenues. Industry bodies have called for finance ministries and central banks to work with aviation authorities on practical clearing plans and to prevent new balances from building up.

Warning: Blocked funds materially reduce connectivity and can force route suspensions that harm passengers and economies.

Policy Shifts and Market Signals in 2025

The safety picture shows progress but also a gap with global norms. Africa recorded a zero fatality risk for two straight years (2023–2024), a milestone noted by industry leaders. But the implementation rate of ICAO Standards and Recommended Practices sits at 59.49%, below the 69.16% global average and short of the 75% target.

• South Africa stands out with a 91.11% ICAO safety oversight score and plans to establish an independent accident investigation authority — a common step to strengthen public trust and align with best practice.

Liberalization continues to drive the debate. Modeling by industry analysts shows that open markets among just 12 key states could add 155,000 jobs and $1.3 billion to annual GDP.

• VisaVerge.com reports that steady SAATM rollout paired with fair-competition and consumer rules can create a level field for both state-owned and private airlines.
• Several countries remain cautious, citing concerns about market dominance and the pace of change. South Africa’s bilateral-first stance captures this caution even as it backs regional integration under SAATM.

Cost, Infrastructure, and Fleet Trends

Cost remains a stubborn drag on growth. Taxes and fees in many African markets are about 15% higher than the global average, dampening demand and limiting route viability. Airports and air navigation providers face real funding needs, but airlines argue that predictable, cost-based charges linked to service quality will expand traffic and, over time, raise total revenue.

Governments are reviewing aviation taxes and weighing incentives for new routes, such as temporary fee reductions tied to performance metrics like load factor and sustained operation.

Infrastructure investment is uneven, particularly in the cargo chain. While some hubs have upgraded terminals and ground handling, other airports still struggle with:
– Cold-chain gaps
– Limited warehouse space
– High fuel and power costs

Manufacturers and service providers have stepped in with training, spares support, and fleet planning tools. According to industry materials from Boeing and Deutsche Aircraft, Africa’s long-term fleet needs will lean toward efficient narrowbodies and capable regional aircraft that can serve thinner routes while meeting rising environmental standards.

What Implementation Means for Travelers, Airlines, and States

For travelers:
– Stronger SAATM execution promises more nonstops, shorter travel times, and lower average fares on busy city pairs once capacity grows and competition deepens.
– Early examples show that when restrictions lift, carriers often add frequencies and offer more day-of-week choices, widening fare dispersion and improving options for price-sensitive passengers.
– This is especially important for small businesses, students, and families who now face long, costly connections for journeys that should take a few hours.

For airlines, liberalization offers opportunities and challenges. To succeed carriers are focusing on:
1. Building partnerships and codeshares to expand reach without heavy capital outlay
2. Right-sizing fleets for secondary cities and seasonal swings
3. Improving on-time performance and customer service to protect yields
4. Using modern revenue management to match prices to demand more closely

For airports and air navigation providers, priority items include:
– Aligning charges with service levels and agreed investment plans
– Digitizing slots, billing, and safety reporting to cut delays and disputes
– Expanding cargo cold-chain and secure warehouses where demand justifies
– Training staff to meet ICAO and regional standards consistently

For governments, the to-do list centers on rules and coordination:
– Craft policy reforms that align with SAATM and set clear, transparent rules for access, competition, and consumer protection
– Finance ministries can ease blocked-fund pressures with time-bound clearance schedules and currency access windows
– Transport officials should coordinate with immigration, customs, and health agencies to streamline border checks

According to VisaVerge.com, these institutional steps shape the real-world passenger and cargo experience as much as air service rights.

Stakeholder engagement is critical: when airlines, airports, consumer bodies, and tourism boards are included in route-development talks, outcomes are more durable and less politicized.

Implementation Guidance and Typical Steps

The SAATM Handbook and the Joint Prioritized Action Plan help states move from signature to action by laying out steps on regulatory alignment, competition rules, consumer safeguards, and dispute resolution.

Typical stages include:
– Policy commitment and formal accession to SAATM
– Adoption of harmonized rules and transparent licensing criteria
– Capacity building for safety oversight and market monitoring
– Regular reviews with carriers and airports to solve operational issues
– Public reporting so passengers and businesses can track progress

Remaining Risks and the Near-Term Outlook

Not all headwinds are policy-based. Fuel prices, aircraft lease rates, and exchange-rate swings can wipe out thin margins. But policy choices influence the flexibility carriers have to adjust routes and pricing when conditions shift.

With Africa’s demographics and urban growth, demand trends point upward; the question is whether supply can keep pace across both trunk and regional routes.

Industry leaders say the next 18 months will be decisive:
– South Africa intends to deliver a white paper by year-end and finalize frameworks in 2026.
– Several states are preparing SAATM steps, while others are revisiting bilateral Open Skies agreements to widen access and improve fifth-freedom opportunities.

IATA’s recent regional updates underscore the link between faster policy action and stronger connectivity across the continent. Readers can review those materials via IATA’s Africa press releases.

Economic and Social Impacts

For businesses:
– Improved air links can reshape supply chains by enabling same-time-zone access to customers and suppliers, cutting costs and delays.

For tourism:
– More direct flights support broader regional itineraries, spreading visitor spending beyond a single gateway city.

For education and health:
– Universities and health systems benefit from easier access for students, researchers, and patients.

Conclusion

As governments decide how fast to move, the broader aim is clear: open more routes, keep fares within reach, and maintain high safety standards that build public trust. SAATM provides the framework, while targeted Open Skies agreements can serve as stepping stones when states prefer a phased approach.

The immediate task is to turn signatures and policy statements into reliable flights that help people and goods move across borders with fewer hurdles.