Africa’s air cargo sector is becoming one of the continent’s fastest-growing aviation segments, but industry leaders say African airlines are still being held back by fragmented regulation, inadequate cargo infrastructure and high operating costs.
Air cargo was a prominent theme at the recent AFRAA 14th Aviation Stakeholders Convention, where it was positioned as an increasingly important driver of economic growth, rather than simply a supplementary source of airline revenue.
Sanjeev Gadhia, Chief Executive Officer of Astral Aviation, said Africa currently accounts for just 3% of the global air cargo market, despite being the fastest-growing cargo region in the world, with annual growth of about 7%.
The continent’s demographic profile provides a strong foundation for future expansion. Africa is home to approximately 18% of the world’s population, with around 60% of its people under the age of 30.
Astral Aviation, the Nairobi-based pan-African cargo airline led by Gadhia, operates a fleet of Boeing aircraft and serves approximately 14 African destinations. The airline also operates to the Middle East, Asia and China, and collaborates with eight African carriers and around 52 international airlines.
Despite the sector’s growth, Africa’s regulatory environment remains highly fragmented. With 54 countries each maintaining their own aviation regulations, organisations such as the African Airlines Association (AFRAA) and the African Civil Aviation Commission (AFCAC) are working to reduce regulatory differences across the continent.
Cargo operations are also becoming increasingly significant to airline business models, contributing between 14% and 20% to airline profitability.
However, the industry’s expansion will require substantial investment in specialised infrastructure. Many African airports have historically been developed around passenger operations, leaving cargo facilities underdeveloped.
Greater investment in cargo infrastructure, particularly through public-private partnerships, is seen as critical as the African Continental Free Trade Area (AfCFTA) creates one of the largest consumer markets in the world.
Demand for air freight is already increasing through the export of fresh produce from countries including South Africa and those in East Africa, particularly to Europe and the Middle East. Pharmaceuticals and cold-chain logistics, whose importance became more evident during the COVID-19 pandemic, also depend on a stable air cargo industry. The rapid expansion of e-commerce has further strengthened demand for faster freight services.
Air cargo also offers a significant advantage in delivery time. Shipping goods by sea from Asia can take between 60 and 75 days, compared with approximately seven days by air. As consumer expectations shift towards faster delivery, efficient cargo networks are expected to become increasingly important.
Although freight volumes in Africa are growing faster than the global average, the continent still has relatively few dedicated cargo airlines. There is also scope for passenger airlines to develop stronger cargo operations. South African Airways was cited as an example of an airline with a sizeable passenger fleet but no dedicated cargo aircraft.
The growing market for air cargo spans agriculture, oil and gas, mining and manufacturing, with these sectors increasingly dependent on efficient cargo services, particularly where equipment, products and time-sensitive goods need to move quickly.
Operating costs remain one of the industry’s biggest challenges. High taxes imposed on cargo at various stages of transportation make intra-African freight significantly more expensive than it could be. In some countries, cargo is taxed more heavily than passenger operations.
Regulatory reform is another major concern, with the industry still awaiting the full liberalisation of air cargo under the Single African Air Transport Market (SAATM).
Much of the cargo transported between African countries is routed through hubs in the Middle East or even Paris before reaching its final destination within Africa. This reflects the limited direct cargo connectivity across the continent.
Airport investment has also largely prioritised passenger terminals, while cargo infrastructure has received comparatively little attention.
Competition from foreign airlines remains significant. According to Gadhia, approximately 80% of cargo transported to and from Africa is carried by foreign carriers, leaving African airlines with only about 20% of the market.
Africa’s limited intra-continental trade also remains a challenge. Only about 20% of African trade takes place within the continent, while approximately 80% is conducted with markets outside Africa. Industry stakeholders believe improved implementation of SAATM could help increase intra-African trade connectivity to at least 50%.
The AfCFTA, representing a US$3.4 trillion market, was identified as a major opportunity for future cargo expansion.
To support that growth, Africa needs faster adoption of electronic air waybills, real-time cargo tracking systems and broader digitalisation of cargo operations. These reforms are becoming increasingly important as Africa’s e-commerce market grows by around 20% annually and approaches a value of nearly US$100 billion. Platforms such as Jumia and South Africa’s Takealot were cited as examples of e-commerce expansion in Africa.
Perceptions of Africa also continue to affect the cargo industry. Gadhia cited the recent Ebola outbreak in the Democratic Republic of Congo as an example of how health crises in one part of the continent can create broader perceptions that negatively affect travel and cargo demand in countries including Rwanda and Uganda.
Policy and regulatory reform remain among the industry’s biggest obstacles. AFCAC and the African Union were called on to accelerate SAATM implementation, while the industry also needs greater partnerships between African airlines, collaboration with international carriers from China and India, public-private partnerships and closer cooperation with the shipping industry.
Africa’s air cargo sector will require a combination of liberalisation, infrastructure investment, digitalisation and supportive government policies to unlock its full potential and enable African airlines to capture a larger share of the continent’s growing freight market.
