A study from the African Airlines Association reveals that the African aviation industry is still facing significant challenges to up its global competitiveness despite political, economic and infrastructural support in the recent past. Main stumbling blocks are excessive taxes and charges, combined with high fuel costs which negatively affect airlines, passengers, cargo transportation and economic growth, across the continent.
The overview presented by the Association, better known by its acronym: AFRAA, reveals that Sierra Leone is the most expensive country in terms of ticket taxes, landing and handling charges and fees. It is followed by Gabon and Nigeria. Fuel accounts for 40% of operating costs in Africa versus 25% globally. Air navigation charges amount to 12-15% in average, roughly 10% higher than in Europe, North America or the Far East. Maintenance, insurance, and capital costs are also 6-10% more expensive in comparison. These high costs erode airline profitability and inflate fares, pricing out potential travelers. Additionally, blocked funds – amounting to USD 919 million, or 70% of the global total – pose a significant financial strain, limiting African airlines’ ability to reinvest in growth.
Bright future for passenger traffic, but cargo falls back
Africa’s aviation market is projected to more than double by 2043, reaching 345 million passengers annually, with an average growth rate of 3.7% over the next two decades. This forecast reflects the continent’s demographic and economic potential, with rising urbanization and trade integration driving passenger and cargo demand. Countries like Ethiopia and Rwanda have already capitalized on this trend, leveraging aviation as a strategic economic enabler. Investments in Ethiopian Airlines and Addis Ababa Bole International Airport, as well as RwandAir and Kigali’s airport, have transformed these nations into regional hubs, boosting tourism, air freight, trade, and investment. Yet, unlocking this potential continent-wide requires setting aside persistent barriers, urges AFRAA.
While passenger demand keeps growing – as shown by a year-to-date increase of 9% in Q1, 2025 – the cargo sector paints a less optimistic picture, with demand down 5.5% year-to-date, lagging behind global trends. This decline highlights structural challenges, including limited or even poor cargo infrastructure and high operational costs, that continue to impede Africa’s competitiveness in global trade.
African aviation needs to think big, AFRAA
In order to take a U-turn and unlock Africa’s aviation potential, AFRAA tables priorities that policymakers and governments should consider: Governments are well-advised to recognize aviation’s strategic value such as has been done in Ethiopia and Rwanda (see above). This also includes a modern ground infrastructure, well-trained staff and a fee policy that does not deter airlines. Cost-efficient public-private partnerships exemplify scalable infrastructure that supports growth without burdening airlines or passengers. Aligning national policies with the African Continental Free Trade Area (AfCFTA), is another step to set barriers aside, improve connectivity and increase air traffic and trade.
Jumia opens e-commerce hub in Cairo
Over in Cairo, a 27,000 m² warehouse was inaugurated to boost logistics. The new facility will enhance delivery efficiency, create 10,000 jobs and support Egypt’s role as a regional e-commerce hub. Operator is NYSE-listed Jumia, a leading e-commerce platform in Africa.
The facility serves as an integrated logistics center aimed at enhancing storage and distribution efficiency, especially in underserved areas such as Upper Egypt, a release explains. “We are proud to unveil this milestone investment, which reflects Jumia’s deep-rooted commitment to Egypt as a strategic market in our pan-African operations. This new facility not only improves how we serve millions of customers and sellers across the country, but also strengthens our support for local manufacturers, drives job creation, and advances Egypt’s digital economy. We see this warehouse as a launchpad for innovation and growth, not just in Egypt, but for the entire region,” Abdellatif Olama, CEO, Jumia Egypt stated.
Jumia operates across nine African countries and connects approximately 70,000 sellers with customers, its release reads.
