New Financing Platform for Air Transport

The African Development Bank (AfDB) has launched a new financing platform aimed at strengthening air transport infrastructure on the continent. This initiative, known as the Integrated Aviation Transformation Program (IATP), was introduced during the Forum on Airlines, Capital, and Connectivity in Nairobi (Kenya), organized in collaboration with the African Airlines Association (AFRAA).

Focus on Air Cargo and Logistics

The IATP places a particular emphasis on developing air cargo and logistics capabilities. Forum participants highlighted that improved cargo infrastructure is crucial for supporting trade flows, export industries, and regional supply chains. Investments are expected to focus on cargo facilities at airports, logistics platforms, and multimodal transport connections.

Despite the promising demand, the African air transport sector faces structural challenges. These include limited access to long-term capital, fragmented regulatory frameworks, and existing infrastructure deficits. According to the International Air Transport Association (IATA), African airlines are expected to achieve net margins of only 1 to 2% by 2026, while the global average stands at 3.9%.

Improving Intra-African Connectivity

Forum participants emphasized that strengthening cargo operations and implementing the Single African Air Transport Market (SAATM) could significantly enhance intra-African connectivity and support trade growth on the continent. The AfDB aims to improve the investment climate for aviation with the new platform, thereby increasing the competitiveness of the African air transport market.

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