The International Air Transport Association (IATA) on Wednesday issued a stark warning to African governments, asserting that excessive taxes and charges on air travel are stifling the continent’s aviation growth and impeding its vital contribution to economic development.
The industry body urged a re-evaluation of current fiscal policies, emphasizing that the economic benefits of aviation are catalytic, not a source of revenue to be overtaxed.
“Africa’s aviation sector is a vital economic driver, contributing USD 75 billion to GDP and supporting 8.1 million jobs,” stated Somas Appavou, IATA’s Regional Director External Affairs, Africa. “The continent’s aviation market is projected to grow at 4.1% over the next 20 years, doubling by 2044. However, this potential is being undermined by a heavy tax burden.”
IATA highlighted that taxes and charges on air travel in Africa are a staggering 15% higher than the global average. This significant premium, according to IATA, directly impacts demand and, consequently, the broader economic and social benefits that aviation provides.
“It is critical that governments understand that the greatest value that aviation brings to an economy is catalytic. Transporting travelers and goods stimulates job creation. Destroying demand with excessive taxation puts a brake on economic and social development,” Appavou underscored.
While acknowledging that some charges are necessary to fund critical aviation infrastructure, IATA emphasized the imperative of coordination between industry and government. The goal, they stressed, must be to “build growth-supporting infrastructure that is cost-efficient and scalable,” rather than imposing levies that deter passengers and freight.
The warning on taxation comes as part of a broader call from IATA for African governments to prioritize aviation. Beyond the cost burden, the international body lso outlined the need to improve aviation safety, where Africa’s implementation of ICAO Standards and Recommended Practices (SARPS) lags behind the global average.
The association also strongly condemned the issue of blocked airline funds, with $1 billion of airline revenues currently being withheld from repatriation by African governments across 26 countries, representing 73% of total global blocked funds.
“These challenges are not new but solving them is urgent. That’s why IATA launched the Focus Africa initiative in 2023, working hand-in-hand with governments, industry, and development partners to deliver real improvements in safety, affordability, and connectivity,” Appavou concluded.
“Aviation is not a luxury. It is an economic and social lifeline. Focus Africa is about turning potential into jobs, growth and prosperity.” IATA’s message is clear: for Africa to truly harness the power of its aviation sector for sustained economic prosperity, governments must lighten the tax load and embrace policies that foster growth, not hinder it.
