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

Nairobi - In a bid to combat high trade costs, African governments and aviation industry leaders are advocating for faster implementation of open-skies policies. These policies would streamline air transport markets, a crucial step towards unlocking the full potential of the African Continental Free Trade Area. During a high-level working session ahead of the Africa Mindset Reset Forum in Kigali, participants noted that while Africa possesses much of the legal framework required to liberalize air travel, practical implementation, financing, and political commitment remain significant obstacles.

Rwandan Trade and Industry Minister Antoine Kajangwe emphasized the importance of reliable air connectivity, highlighting that businesses need affordable, frequent, and dependable air routes to access markets across the continent without facing excessive costs or delays. The discussions centered on the Yamoussoukro Decision, which aims to liberalize African air transport markets, including by expanding traffic rights.

The AfCFTA Secretariat's Tsotetsi Makong stressed that merely adopting continental agreements is not enough; these rules must be domesticated, lived out, and translated into tangible benefits for African people and businesses. The financial strain on African airlines was also a major concern, with nearly $800 million (Sh103.2 billion) in airline revenues blocked across 14 African countries.

Raphael Kuuchi of the African Airlines Association warned that airlines cannot sustainably maintain routes when revenues generated in one market are used to finance operations elsewhere. The African Development Bank's Lufeyo Banda stressed that open skies would necessitate investment beyond regulatory reform, encompassing fleet modernization, stronger institutions, and enhanced connectivity.

Africa's aviation connectivity index stands at about 23 percent, with affordability identified as a major barrier to travel. RwandAir CEO Yvonne Manzi Makolo pointed out that additional taxes and charges can make intra-African flights prohibitively expensive, with some fees accounting for nearly half of ticket prices. For Kenya, a key regional aviation hub, more rigorous implementation of open-skies policies could benefit airlines, tourism, exporters, and businesses looking to expand across African markets, while simultaneously exposing local carriers to stiffer competition.

Participants also proposed an "Africa Zone" of countries offering visa-free or visa-on-arrival access to boost business and tourism mobility. The Africa Mindset Reset Forum, set for August 25-26 in Kigali, is expected to convert policy commitments into practical initiatives, with participants stressing that the central challenge now lies in ensuring governments implement them.