\n\nThe Minister of Aviation and Aerospace Development, Festus Keyamo, has said limited access to affordable financing remains the biggest challenge facing Africa’s aviation sector, warning that high borrowing costs are preventing airlines from renewing their fleets and competing globally.
Speaking at the inaugural African Air Transport Conference in Lomé, Togo, Keyamo said African airlines are struggling to acquire newer aircraft because of unfavourable financing conditions compared with operators in other parts of the world.
He explained that while airlines in some regions secure aircraft financing at interest rates between three and six per cent, African carriers often face rates of up to 30 per cent, making it difficult for them to invest in fleet renewal.
The minister said the financing gap has forced many African airlines to rely on older aircraft, which are often transferred to the continent after years of service in more profitable markets.
Keyamo stressed that addressing the funding challenge would allow airlines to modernise their fleets, improve connectivity and compete more effectively in the global aviation industry. He also highlighted ongoing efforts by financial institutions to create solutions that support aircraft acquisition across Africa.
