Keypoints:
- AfDB launches continent-wide aviation investment programme
- Nairobi forum explores financing and regulatory reforms
- Africa’s aviation demand rising despite structural barriers
THE African Development Bank Group (AfDB) has launched a continent-wide aviation initiative aimed at unlocking investment, strengthening infrastructure and improving connectivity across Africa’s air transport sector.
Known as the Integrated Aviation Transformation Programme (IATP), the initiative is designed to mobilise private, institutional and concessional capital while supporting policy reforms that make Africa’s aviation market more financially sustainable.
The programme was unveiled during the Airlines, Capital and Connectivity Forum, held in Nairobi from February 25 to 26, 2026. The event, organised by AfDB in partnership with the African Airlines Association (AFRAA), brought together airline executives, transport ministers, regulators, investors, aircraft manufacturers and development partners to explore ways to translate growing demand for air travel into sustainable industry growth.
Africa’s aviation sector is expected to expand rapidly in the coming decades, but growth has been constrained by infrastructure gaps, fragmented regulations and high financing costs. AfDB officials say the new aviation programme aims to bridge these gaps by de-risking investments, improving access to capital and supporting reforms that strengthen the sector’s long-term viability.
Strong demand but limited capacity
Africa is widely seen as one of the fastest-growing aviation markets globally, driven by urbanisation, demographic expansion and the rise of a middle class across several economies.
Yet industry leaders warn that demand growth has not been matched by sufficient investment or operational capacity.
Mike Salawou, AfDB’s director for infrastructure and urban development, said the sector’s investment pipeline needs urgent strengthening.
‘While Africa’s aviation demand outlook ranks among the strongest globally, supply-side capacity and investment readiness have lagged,’ Salawou said during the forum.
He explained that the Integrated Aviation Transformation Programme will focus on reducing investment risk and supporting early pilot transactions.
‘The IATP seeks to de-risk priority investments, support early pilot transactions, and restore confidence among commercial and institutional financiers,’ he added.
Industry statistics presented during the forum highlighted the scale of the challenge. Africa accounts for almost 18 percent of the global population but less than 3 percent of global air traffic.
AFRAA secretary general Abderahmane Berthé said the imbalance reflects structural barriers rather than weak passenger demand.
‘Africa represents nearly 18 percent of the global population but accounts for less than 3 percent of worldwide air traffic, reflecting structural and regulatory barriers rather than weak demand,’ Berthé said.
Aviation key to continental integration
African Union officials emphasised that aviation will play a central role in the continent’s broader economic integration agenda.
Eric Ntagengerwa, head of transport and mobility at the African Union Commission, delivered keynote remarks on behalf of Lerato Dorothy Mataboge, the AU commissioner for infrastructure and energy.
He highlighted the strategic importance of air connectivity in supporting trade, tourism and economic competitiveness across Africa.
Ntagengerwa also noted that the Single African Air Transport Market (SAATM) has been designated as the African Union’s theme for 2027, underscoring the bloc’s commitment to strengthening continental air connectivity.
Improved aviation links are considered vital to advancing the African Continental Free Trade Area and facilitating cross-border business and mobility.
Profitability challenges remain
Despite strong growth prospects, African airlines continue to face financial pressures.
According to projections by the International Air Transport Association, African carriers are expected to record net profit margins of just 1 to 2 percent in 2026, significantly below the global industry average of 3.9 percent.
High fuel costs, heavy taxation, regulatory fragmentation and limited hub infrastructure remain major obstacles.
Forum participants noted that improving airline profitability will require coordinated policy reforms alongside large-scale investment in airport infrastructure, logistics networks and airline financing structures.
Turning policy into projects
Discussions during the Nairobi forum focused on translating continental aviation ambitions into concrete investment opportunities.
Participants explored ways to strengthen airline bankability, develop climate-aligned aviation projects, expand cargo and logistics capacity and improve aviation workforce training.
Another key focus was the use of innovative risk-sharing instruments under the AfDB programme to attract institutional investors.
Officials from Nigeria, Kenya and Ethiopia shared experiences on aligning national aviation strategies with continental goals while creating opportunities for investment in airports, airlines and related infrastructure.
Samuel Obafemi Bajomo, senior adviser to Nigeria’s aviation ministry, stressed the importance of stable and forward-looking policy frameworks.
‘Forward-looking, pro-investment policy frameworks are critical to strengthening connectivity and unlocking Africa’s growth potential and positioning aviation as a catalyst for trade, tourism, and shared prosperity,’ Bajomo said.
Participants at the forum concluded that Africa’s aviation demand trajectory is clear and accelerating. The next phase, they said, will require coordinated action to align policy reforms, capital mobilisation and infrastructure development so that aviation can become a durable driver of inclusive growth and regional integration across the continent.
