{"id":7020,"date":"2026-06-18T12:57:14","date_gmt":"2026-06-18T12:57:14","guid":{"rendered":"https:\/\/stakebridgeirpr.com\/media\/?p=7020"},"modified":"2026-06-18T12:57:14","modified_gmt":"2026-06-18T12:57:14","slug":"keyamo-calls-for-new-aviation-financing-solutions-across-africa","status":"publish","type":"post","link":"https:\/\/stakebridgeirpr.com\/media\/keyamo-calls-for-new-aviation-financing-solutions-across-africa\/","title":{"rendered":"Keyamo Calls For New Aviation Financing Solutions Across Africa"},"content":{"rendered":"

By Olumide Johnson<\/strong><\/p>\n

 <\/p>\n

Speaking on the sidelines of the inaugural African Air Transport Conference in Lom\u00e9, Togo, Festus Keyamo, Minister of Aviation and Aerospace Development, identified access to affordable financing and fleet renewal as the most significant challenge facing Africa’s aviation industry. Addressing policymakers and industry stakeholders, he argued that African airlines remain disadvantaged by borrowing costs that can reach about 30 percent, compared with financing rates of three to six percent available to operators in more developed aviation markets. He called for stronger continent-led financing solutions and welcomed ongoing intervention efforts by the African Development Bank and African Export-Import Bank.<\/p>\n

DECISION HIGHLIGHT<\/strong><\/p>\n

Keyamo’s intervention reframes Africa’s aviation challenge from a demand problem to a capital access problem, suggesting that financing structures, rather than passenger traffic, are the principal constraint on sector growth.<\/p>\n

DECISION MEMO <\/strong><\/p>\n

The significance of Keyamo’s assessment lies in its focus on the economics of fleet acquisition rather than operational inefficiencies.<\/p>\n

For decades, discussions around African aviation have centred on connectivity gaps, regulatory barriers and infrastructure deficits. His argument shifts attention to the financing architecture underpinning airline competitiveness. Without access to affordable capital, airlines struggle to acquire modern aircraft, lower operating costs and compete effectively on international routes.<\/p>\n

As Keyamo stated: \u201cThe real problem of Africa is fleet renewal, access to financing. That\u2019s the real problem of Africa.\u201d<\/p>\n

His comparison of financing costs highlights the scale of the disadvantage. \u201cOther parts of the world are getting aircraft and financing their aircraft fleet at three percent, five percent or six percent. Our banks here are giving us 30 percent and we want to compete in the same market. It\u2019s not possible.\u201d<\/p>\n

The consequence is a persistent dependence on ageing aircraft transferred from more profitable markets after their prime operating years. According to Keyamo, \u201cMost of the aircraft that come to Africa are old aircraft. We all complain about them, but the issues are deeper than a minister simply saying don\u2019t bring this aircraft.\u201d<\/p>\n

The broader implication is that aviation competitiveness in Africa may depend less on regulation and more on creating specialised financing mechanisms capable of reducing capital costs. His support for intervention by the African Development Bank and African Export-Import Bank suggests that multilateral finance may become increasingly important in addressing this structural gap.<\/p>\n

DATA BOX<\/strong><\/p>\n