The International Air Transport
Association (IATA) has recovered a large chunk of the $5 billion blocked
revenues of international airlines from African countries.
Association (IATA) has recovered a large chunk of the $5 billion blocked
revenues of international airlines from African countries.
The Association as late last year African nations still owed foreign airlines about $1 billion in blocked funds.
It said Nigeria was able to finalise the
payment of these foreign airlines in March this year, which rose to a
total of $600 million.
payment of these foreign airlines in March this year, which rose to a
total of $600 million.
Some countries, including Egypt and Angola still owed the airlines till recently.
Many African nations that rely on oil
revenue for their foreign exchange sources had experienced a hit when
the prices of oil nosedived in the international market and they were
unable to pay foreign airlines their revenues in
dollars.
revenue for their foreign exchange sources had experienced a hit when
the prices of oil nosedived in the international market and they were
unable to pay foreign airlines their revenues in
dollars.
“These countries were overly dependent on
natural resources for a substantial portion of their revenue, and they
were dependent on imported products to sustain their own economies,”
said IATA’s vice president for Afric, Raphael
Kuuchi, said.
natural resources for a substantial portion of their revenue, and they
were dependent on imported products to sustain their own economies,”
said IATA’s vice president for Afric, Raphael
Kuuchi, said.
He said progress was being made, as
Nigeria and Egypt have cleared all blocked funds, while Angola has
reduced the amount it owes to airlines to around $250 million, from $580
million.
Nigeria and Egypt have cleared all blocked funds, while Angola has
reduced the amount it owes to airlines to around $250 million, from $580
million.
“There is definitely still a lot of work
to be done. During my last visit to Angola, I received assurance that
the government was going to clear the remainder of the blocked funds by
the end of August,” said Kuuchi.
to be done. During my last visit to Angola, I received assurance that
the government was going to clear the remainder of the blocked funds by
the end of August,” said Kuuchi.
“From just under $1 billion, today we stand at around $500 million in funds blocked across Africa.”
That includes $180 million still locked
up in Sudan, $100 million in Zimbabwe, $40 million each for Algeria and
Ethiopia, $29 million in Libya, and $11 million in both Mozambique and
the Central African Republic.
up in Sudan, $100 million in Zimbabwe, $40 million each for Algeria and
Ethiopia, $29 million in Libya, and $11 million in both Mozambique and
the Central African Republic.
IATA attributed the progress being made
to a number of factors, which include the rise in commodity prices
improving foreign exchange earnings for countries, carriers have used
the ‘stick’ of reduced capacity and frequencies to
spur action.
to a number of factors, which include the rise in commodity prices
improving foreign exchange earnings for countries, carriers have used
the ‘stick’ of reduced capacity and frequencies to
spur action.
“Some airlines have gone ahead and cut
back, because they could not continue to sustain operations without
getting funds out of the country.
back, because they could not continue to sustain operations without
getting funds out of the country.
“But governments are now realising that air transport is critical to their economies,” said Kuuchi.
The international organisation said
education and diplomacy have also been part of the solution and that
forex challenges also affected the economy of each country, especially
their domestic airlines.
education and diplomacy have also been part of the solution and that
forex challenges also affected the economy of each country, especially
their domestic airlines.
“We had to point out that even their own
airlines flying into foreign airports incur costs in foreign currency,”
“If they have to maintain aircraft outside their country, they need
foreign currency. If they need spare parts, they
need foreign currency,” Kuuchi said.
airlines flying into foreign airports incur costs in foreign currency,”
“If they have to maintain aircraft outside their country, they need
foreign currency. If they need spare parts, they
need foreign currency,” Kuuchi said.
