The African Airlines Association (AFRAA) has called for coordinated action by governments, central banks, regional bodies and aviation stakeholders to address the continued problem of airline revenues being blocked in some African markets.
Blocked funds arise when airlines are unable to repatriate revenues generated from ticket sales, cargo services and other commercial activities. AFRAA attributes the problem in affected markets to factors including foreign exchange controls, currency shortages and regulatory barriers, warning that delayed access to revenues places additional pressure on airline cash flow and can result in foreign exchange losses.
According to the association’s policy paper, seven African markets were among the ten countries accounting for 89% of global blocked airline funds at the end of October 2025. Algeria had USD$307 million in blocked funds, followed by the XAF Zone at USD$179 million. Mozambique accounted for USD$91 million, Angola USD$81 million, Eritrea USD$78 million, Zimbabwe USD$67 million and Ethiopia USD$54 million.
AFRAA identified political interference and policy or regulatory constraints, shortages of foreign exchange, weaknesses in national financial systems and government prioritisation of hard currency for domestic obligations among the principal reasons airlines are unable to repatriate their funds.
The association warned that prolonged delays can affect connectivity when airlines respond by reducing frequencies or suspending services to markets where revenues cannot be transferred. Airlines also continue to face significant US dollar-denominated operating costs and require reliable access to foreign currency to meet their obligations.
AFRAA cited IATA figures showing profit per passenger of USD$1.30 for African airlines in 2025, compared with a global average of USD$7.90.
An AFRAA survey conducted among its member airlines in August 2025 found that ten airlines would consider repatriating blocked funds in their home countries’ local currencies, provided the arrangements were competitive, predictable and reliable.
Among the measures proposed by AFRAA are structured and time-bound repayment schedules between governments, central banks and airlines, together with maximum periods for the repatriation of airline revenues. The association also proposes improving access to foreign exchange, reducing administrative barriers and incorporating fund repatriation provisions into Bilateral Air Services Agreements.
At a regional level, AFRAA has proposed greater use of currency clearing mechanisms such as the Pan-African Payment and Settlement System to reduce reliance on scarce foreign currencies. It has also called on the African Union Commission to strengthen obligations relating to the free repatriation of airline revenues under the Single African Air Transport Market framework.
Another proposal is the establishment of a revolving fund backed by the African Development Bank and African Export-Import Bank to assist countries experiencing foreign exchange shortages.
AFRAA said its response to the blocked funds issue rests on four pillars covering advocacy, lobbying, negotiation and collaboration with local stakeholders. The association has already undertaken advocacy missions in affected countries and intends to continue engaging governments and other stakeholders to secure the release and repatriation of airline revenues.
Read the full AFRAA POLICY PAPER ON BLOCKED FUNDS, by the African Airlines Association here: https://www.afraa.org/afraa-policy-paper-on-blocked-funds/
