The Minister of Aviation and Aerospace Development, Festus Keyamo, has highlighted limited access to affordable financing and the need for fleet modernisation as the major obstacles confronting Africa’s aviation industry.
Speaking during the inaugural African Air Transport Conference in Lomé, Togo, Keyamo said the demand for air travel across Africa remains strong, but airlines continue to face difficulties expanding and modernising their operations due to financial constraints.
According to the minister, many African carriers are unable to access the low-interest financing available to airlines in other regions of the world, making it difficult for them to acquire modern aircraft and compete effectively in the global aviation market.
He noted that while airlines in developed markets often secure financing at interest rates between three and six percent, operators in Africa frequently contend with rates as high as 30 percent, placing them at a significant disadvantage.
Keyamo explained that the financing challenge has contributed to the widespread use of aging aircraft across the continent, as many airlines are unable to afford newer fleets.
He said aircraft are typically deployed first in more profitable markets where financing costs are lower before eventually being transferred to African operators years later. As a result, many of the aircraft arriving on the continent have already spent over a decade in service.
The minister stressed that the issue extends beyond regulatory decisions and requires practical financing solutions that will enable airlines to purchase newer and more efficient aircraft.
He welcomed ongoing initiatives by the African Development Bank and the African Export-Import Bank aimed at supporting fleet renewal and strengthening the aviation sector across Africa.
Keyamo also urged African countries to develop homegrown financing mechanisms that reduce dependence on foreign aircraft leasing arrangements and create a more sustainable framework for industry growth.
He maintained that improved access to affordable funding would allow airlines to modernise their fleets, increase operational capacity, and enhance air connectivity throughout the continent.
