AfDB Launches Aviation Financing Platform to Unlock $25trn Opportunity

The African Development Bank Group (AfDB) has launched a new aviation financing platform to unlock investment in Africa’s fast‑growing air transport market.

“The Integrated Aviation Transformation Programme will deliver bankable aviation projects across the continent,” said Mike Salawou, AfDB’s Director of Infrastructure and Urban Development.

The initiative was unveiled at the Airlines, Capital and Connectivity Forum in Nairobi, where regulators, airline executives and investors discussed how to mobilize long‑term capital for the sector.

Africa is projected to become the world’s fastest‑growing aviation market over the next two decades, with forecasts suggesting one in four new global air travellers could come from the continent.

Despite rising demand, African airlines continue to struggle with profitability. The International Air Transport Association estimates net margins of only one to two percent in 2026, compared to a global average of 3.9 percent.

“High borrowing costs, fragmented regulations and inadequate infrastructure have held back growth,” Salawou noted.

Industry leaders emphasized the scale of untapped opportunity. “Africa represents nearly 18 percent of the world’s population but accounts for less than three percent of global air traffic,” said Abderahmane Berthé, Secretary‑General of the African Airlines Association.

Limited intra‑African connectivity remains a major barrier, with only a quarter of African travellers flying within the continent.

Officials from the African Union Commission stressed that implementing the Single African Air Transport Market is critical to expanding regional routes. Stronger intra‑African connectivity, they argued, would stimulate trade, tourism and cargo logistics while boosting airline revenues.

Forum discussions also explored financing models for climate‑aligned aviation, cargo expansion, skills development and risk‑sharing instruments to attract institutional investors. Country experiences from Nigeria, Kenya and Ethiopia highlighted how national policy reforms could translate into near‑term investment opportunities.