Africa: Open Skies Delays Keep Africa's Trade Costs High

Nairobi — African governments and aviation industry leaders are pushing for faster implementation of open-skies policies, warning that fragmented air transport markets are raising business costs and limiting the benefits of the African Continental Free Trade Area.

A high-level working session ahead of the Africa Mindset Reset Forum in Kigali found that Africa has much of the legal framework needed to liberalize air travel, but implementation, financing and political commitment remain major hurdles.

Rwanda's Minister for Trade and Industry Antoine Kajangwe said reliable air connectivity is critical to enabling businesses to access markets across the continent.

"We must work towards affordable, frequent, and reliable air connectivity that allows a manufacturer in Kigali to ship cargo across Africa without excessive costs, unnecessary delays, or complicated routes."

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The discussions focused on the implementation of the Yamoussoukro Decision, which seeks to liberalize African air transport markets, including through expanded traffic rights.

Tsotetsi Makong of the AfCFTA Secretariat said countries must move beyond adopting continental agreements to implementing them domestically.

"Those rules must be domesticated, brought to life, and translated into practical benefits for African people and businesses."

A major concern raised during the session was the financial pressure facing African airlines.

Raphael Kuuchi of the African Airlines Association said nearly $800 million (Sh103.2 billion) in airline revenues remains blocked across about 14 African countries, restricting carriers' ability to repatriate earnings and reinvest in operations.

He warned that airlines cannot sustainably maintain routes when revenues earned in one market are used to finance operations elsewhere.

The African Development Bank's Lufeyo Banda said open skies would require investment beyond regulatory reform, including fleet modernization, stronger institutions and improved connectivity.

"Open skies cannot be achieved through policy commitments alone. Financing, fleet modernization, stronger institutions, and improved connectivity must all be addressed together," he said.

The African Civil Aviation Commission estimates Africa's aviation connectivity index at about 23 percent, with affordability identified as a major barrier to travel.

RwandAir CEO Yvonne Manzi Makolo said additional taxes and charges can make intra-African flights significantly more expensive, with some fees accounting for almost half of ticket prices.

For Kenya, a major regional aviation hub, deeper implementation of open-skies policies could create opportunities for airlines, tourism, exporters and businesses seeking to expand across African markets, while also exposing local carriers to greater competition.

Participants also proposed an "Africa Zone" of countries offering visa-free or visa-on-arrival access to improve business and tourism mobility.

The Africa Mindset Reset Forum, scheduled for August 25-26 in Kigali, is expected to focus on turning the policy commitments into practical initiatives.

The central challenge, participants said, is no longer developing frameworks but ensuring governments implement them.

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