AfDB Forum Charts Strategy to Unlock Africa’s Aviation Boom

With Africa projected to become the world's fastest-growing aviation market, policymakers and industry leaders are working to ensure that rising passenger demand translates into sustainable connectivity, stronger competitiveness and financial viability.

This challenge was at the centre of discussions during the Airlines, Capital and Connectivity Forum, held in Nairobi on 25–26 February 2026. The two-day event was organised by the African Development Bank Group (AfDB) in partnership with the African Airlines Association (AFRAA).

The forum brought together airline executives, transport ministers, regulators, investors, aircraft manufacturers and development partners to explore ways of transforming Africa's aviation sector and unlocking long-term investment.

Integrated Aviation Transformation Program launched

A key focus of the forum was the African Development Bank's Integrated Aviation Transformation Program (IATP)—a new continental initiative designed to modernise Africa's aviation ecosystem.

The programme aims to mobilise private, institutional and concessional financing while aligning policy reforms and infrastructure development within a single investment framework.

AfDB officials say the initiative will help address long-standing challenges in the sector, including:

• High costs of capital

• Fragmented regulatory systems

• Gaps in aviation infrastructure

• Limited access to long-term financing

By creating a bankable pipeline of aviation projects, the programme seeks to attract global investors and strengthen confidence in Africa's aviation industry.

Aviation seen as engine for economic growth

Opening the forum, Mike Salawou, Director for Infrastructure and Urban Development at the African Development Bank, highlighted the continent's strong demand outlook but noted that investment has not kept pace.

He said the IATP is designed to de-risk priority investments and support early pilot projects, helping restore confidence among commercial lenders and institutional investors.

Participants emphasized that aviation plays a critical role in regional integration, trade facilitation, tourism development and economic diversification across Africa.

Africa underrepresented in global air traffic

Despite the continent's demographic and economic growth, Africa remains underrepresented in global aviation.

According to AFRAA Secretary General Abderahmane Berthé, Africa accounts for nearly 18% of the world's population but less than 3% of global air traffic.

This imbalance reflects structural barriers rather than weak demand.

Industry forecasts suggest that one in four new global air travellers over the next two decades could come from Africa, driven by rapid urbanisation, a growing middle class and the continent's young population.

Financial pressures still constrain airlines

Despite strong demand potential, the sector continues to face financial challenges.

According to the International Air Transport Association (IATA), African airlines are expected to achieve net profit margins of only 1–2%, significantly below the global average of 3.9% projected for 2026.

Factors affecting profitability include:

• High fuel costs

• Heavy taxation

• Limited hub infrastructure

• Incomplete market liberalisation

Improving intra-African connectivity

Connectivity across the continent remains a major bottleneck.

Currently, only about 25% of Africa's air traffic is within the continent, forcing many travellers to route flights through hubs outside Africa.

Experts at the forum stressed the importance of fully implementing the Single African Air Transport Market (SAATM), a continental initiative designed to liberalise air travel and improve connectivity between African countries.

Eric Ntagengerwa, Head of Transport and Mobility at the African Union Commission, described aviation reform as essential for strengthening economic sovereignty, regional integration and global competitiveness.

He noted that the Single African Air Transport Market will be the African Union's official theme for 2027, highlighting its strategic importance.

Focus on financing, climate and skills development

Discussions during the forum also addressed several priority areas needed to support aviation growth, including:

• Strengthening airline financial sustainability and bankability

• Expanding cargo and logistics capacity

• Promoting climate-aligned aviation technologies

• Developing skilled aviation workforces

• Introducing innovative risk-sharing financing models

Case studies from Nigeria, Kenya and Ethiopia demonstrated how national policy reforms can support broader continental aviation objectives.

Samuel Obafemi Bajomo, Senior Adviser to Nigeria's aviation ministry, said pro-investment policies are essential to unlocking Africa's aviation potential.

He noted that improved connectivity can act as a catalyst for trade expansion, tourism development and inclusive economic growth.

Turning demand into action

The forum concluded with a clear message: Africa's aviation demand is growing rapidly and irreversibly, but the sector must now focus on execution and coordinated investment.

Participants agreed that aligning policy reform, financing mechanisms and infrastructure development will be critical to transforming aviation into a powerful driver of regional integration and economic prosperity across the continent.