AfDB targets Africa’s $25tr air travel opportunity
African Development Bank Group (AfDB) has unveiled a continent-wide aviation financing platform aimed at unlocking large-scale investment in Africa’s fast-growing air transport market and turning rising passenger demand into sustainable
African Development Bank Group (AfDB) has unveiled a continent-wide aviation financing platform aimed at unlocking large-scale investment in Africa’s fast-growing air transport market and turning rising passenger demand into sustainable airline profits.
The initiative, known as the Integrated Aviation Transformation Programme, was presented at the Airlines, Capital and Connectivity Forum held in Nairobi, Kenya, where regulators, airline executives and investors examined how to mobilise long-term capital for the sector.
Africa is expected to become the world’s fastest-growing aviation market over the next two decades, driven by rapid urbanization, a rising middle class and a youthful population. Industry forecasts indicate that one in four new global air travellers could originate from the continent within that period.
Yet airlines across Africa continue to struggle with weak profitability despite the strong demand.
According to the International Air Transport Association, African carriers are projected to post net margins of only about one to two percent in 2026, far below the global average forecast of 3.9 percent.
The financing platform introduced by the African Development Bank Group is designed to address that gap by reducing investment risks, strengthening airline bankability and mobilising capital from private investors, development partners and institutional funds.
Mike Salawou, Director, Infrastructure and Urban Development, African Development Bank Group (AfDB), said the programme would align policy reforms, financing instruments and project implementation into a single framework capable of delivering bankable aviation projects across the continent.
Read Also: AfDB awards $16.6m grant to IITA to scale agricultural technologies
He noted that although demand for air travel in Africa is expanding rapidly, the supply side of the industry has lagged due to high borrowing costs, fragmented regulations and inadequate airport and logistics infrastructure.
Industry leaders say those constraints have prevented Africa from capturing its share of global aviation growth.
Abderahmane Berthé, Secretary-General, African Airlines Association, said Africa represents nearly 18 percent of the world’s population but accounts for less than three percent of global air traffic, highlighting the scale of untapped opportunity.
Participants at the Forum also pointed to limited intra-African connectivity as a major barrier to growth.
Only about a quarter of air traffic involving African travellers occurs within the continent, forcing many passengers to transit through hubs outside Africa.
Experts argue that stronger regional routes could stimulate trade, tourism and cargo logistics while improving airline revenues.
Officials from the African Union Commission stressed that full implementation of the Single African Air Transport Market would be critical to expanding intra-continental routes and strengthening the economics of African airlines.
Discussions at the forum also explored financing models for climate-aligned aviation, cargo logistics expansion, skills development and new risk-sharing instruments aimed at attracting institutional investors.
Country experiences presented by officials from Nigeria, Kenya and Ethiopia illustrated how policy reforms at national level could translate into near-term investment opportunities for airlines, airports and aviation infrastructure.
Analysts say the success of the financing platform will depend on how quickly African Governments align regulatory reforms with investment pipelines capable of attracting long-term capital.
With demand for air travel across the continent expected to accelerate sharply, industry leaders argue that the next phase of Africa’s aviation story will be defined less by passenger growth and more by the sector’s ability to convert that demand into sustainable commercial returns.
