The aviation sector across Africa and the Middle East is facing
a mounting crisis as airline funds totaling \$1.2 billion
remain trapped under government controls as of the end
of October 2025. This staggering figure, released by the International
Air Transport Association (IATA), underscores the persistent challenge
of currency repatriation for airlines operating in these regions.
Notably, 93% of these blocked funds are concentrated in
Africa and the Middle East, a situation that is
increasingly threatening the financial stability and operational
continuity of carriers serving these markets.
While there has been a modest improvement—USD 100
million more has been released since April 2025—the
overall picture remains bleak. Airlines continue to grapple with a
complex web of restrictions, ranging from burdensome
approval procedures and documentation requirements to chronic shortages
of foreign exchange. These obstacles are not only
hampering the ability of airlines to access their revenues from ticket
and cargo sales but are also undermining the vital air connectivity that
supports economic growth and job creation across the continent
.
For the first time, Algeria has emerged as the
leading country in terms of blocked airline funds, with a
reported USD 307 million currently
inaccessible. This sharp increase is attributed to a new
approval requirement imposed by the Ministry of Trade, which has added
yet another layer of bureaucracy to an already challenging process. The
situation in Algeria is emblematic of a broader trend across the region,
where regulatory hurdles and inconsistent policies are making it
increasingly difficult for airlines to repatriate their earnings.
Other countries contributing significantly to the crisis
include the XAF Zone (comprising Cameroon, Central African
Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon)
with USD 179 million, Lebanon at USD 138
million, Mozambique with USD 91
million, and Angola at USD 81
million. Additional notable figures come from
Eritrea (USD 78 million),
Zimbabwe (USD 67 million),
Ethiopia (USD 54 million),
Pakistan (USD 54 million), and
Bangladesh (USD 32 million). Collectively,
these ten countries account for 89% of the total blocked
funds, amounting to USD 1.08 billion
.
The impact of these restrictions is far-reaching. Airlines rely
on timely access to their revenues in U.S.
dollars to cover operational costs, pay suppliers, and
maintain essential air links. The inability to repatriate funds not only
strains airline finances but also threatens the broader ecosystem of
tourism, trade, and investment that depends on robust air connectivity.
As IATA’s Director General Willie Walsh emphasized,
“Airlines need reliable access to their revenues in U.S.
dollars to keep operations running, pay their bills, and maintain vital
air connectivity.” He further highlighted that
governments have made commitments in bilateral air service agreements to
allow for the unfettered repatriation of funds, and that honoring these
commitments is crucial for sustaining the economic benefits that
aviation brings .
In the case of the XAF Zone, there
has been a slight reduction in blocked funds since April 2025, dropping
from USD 191 million to USD 179 million. However, airlines continue to
face significant challenges, particularly with the internal three-step
validation process managed by the Bank of Central African States (BEAC).
Despite submitting all required documentation, carriers report ongoing
delays and backlogs, prompting renewed calls for streamlined procedures
and faster processing times .
The root causes of these currency restrictions are often linked
to political and economic instability,
which drive governments to impose capital controls and prioritize
foreign exchange allocations for other sectors. While these measures may
offer short-term relief for national treasuries, they come at a high
cost to the aviation industry and, by extension, to the economies that
depend on it. IATA has reiterated that the long-term benefits of
supporting air transport—such as increased trade, tourism, and
employment—far outweigh the immediate fiscal gains from withholding
airline revenues .
For African aviation stakeholders, the implications are
profound. The ongoing blockage of funds not only jeopardizes the
financial health of international carriers but also risks reducing the
frequency and availability of flights to and from the continent. This
could have a cascading effect on tourism, business travel, and cargo
operations, ultimately limiting Africa’s ability to connect with global
markets and attract investment. The situation is particularly acute for
countries like Algeria and those in the XAF Zone, where new regulatory
hurdles threaten to further isolate local economies from international
networks.
In response to the crisis, IATA has launched a dedicated web
page to provide greater transparency on the status of blocked funds,
offering quarterly updates and background information to industry
stakeholders. The association continues to urge governments to remove
unnecessary barriers, streamline approval processes, and prioritize the
allocation of foreign exchange for the aviation sector—even in times of
scarcity. These steps are essential for restoring confidence among
airlines and ensuring that Africa remains an attractive and accessible
destination for travelers and investors alike.
Looking ahead, the African aviation industry must remain
vigilant and proactive in advocating for policy reforms that facilitate
the free movement of capital. As global competition intensifies and new
markets emerge, the ability to repatriate revenues efficiently will be a
key determinant of success for airlines and the broader tourism sector.
By addressing these challenges head-on, African countries can unlock
new opportunities for growth, strengthen their position in the global
travel landscape, and ensure that the benefits of aviation are shared
widely across the continent.
