AM EDITORIAL: Investments, Government Funding Of Airports, Airlines Across Africa In 2024

There have been conversations around volume of investments, involvements of governments in Africa’s air transport sector funding, the importance of government’s firm commitment expression and the connection between poverty levels, income per capita and sector’s performance.

In 2024, estimated income per capita in Ethiopia was between $1,133 and $1,350 (nominal USD), reflecting challenges in purchasing power and constant dollar value.

In that year, the Ethiopian government’s major aviation investment centered on the new $12.5 billion Bishoftu International Airport, with Ethiopian Airlines Group committing $3.2 billion in equity, alongside significant debt financing from the African Development Bank (AfDB) and other partners to create Africa’s largest aviation hub. While specific total annual operating investment isn’t detailed for 2024, the focus was heavily on this massive infrastructure project, aiming to boost Ethiopia’s global aviation role by handling most international traffic.

AfDB, a key partner, pledged debt and arranged further financing, with strong interest from global investors. Ethiopia’s Finance Minister Ahmed Shide announced that the country secured $4.8bn pledge towards the giant $12.5bn Bishoftu International Airport. The facility was designed to accommodate 60 million passengers annually upon completion of its first phase by 2030. The project involves significant state-led funding and international financing for this new gateway near Addis Ababa, replacing Bole Airport’s congestion.

Ethiopian Airlines is contributing 30%, with international lenders (Middle East, Europe, China, USA) and the African Development Bank (AfDB) providing the rest funds.

While Ethiopian Airlines is the driving force, the project is a major state initiative, with the government supporting its financing and strategic vision.

Official figures are scarce, but estimates for Egypt’s poverty rate in 2024 point to significant challenges, with projections suggesting poverty could reach around 40% (4 in every 10 Egyptians were poor) due to inflation and currency devaluation. Egypt’s GDP per capita for 2024 fell around $3,300 – $3,600 USD, amidst economic pressures.

Egypt totally leverages on Public Private Partnership (PPP) with IFC and such international and private organizations. For instance, between July 2023 and May 2024, Egypt saw an influx of $900 million in investments from the IFC. Policy heavily involved attracting private sector investment in airports rather than relying solely on direct government investment. There was no single published figure for the total government-exclusive investment in airports in 2024, as the strategy focused on PPPs.

Egypt’s government is heavily investing in its aviation infrastructure, not just airline operations, with major plans for airport expansion and modernization, including a $3.5 billion overhaul for Cairo Airport and private sector pushes, aiming to boost tourism and cargo, supported by significant foreign investment inflows in 2024 and 2025. Though specific total government airline business investment figures aren’t isolated, the focus was on infrastructure.

South Africa’s poverty levels in 2024 was high, with an estimated 40% of the population living on a monthly consumption expenditure of below R9,096. Despite being Africa’s wealthiest nation by total wealth, deep-seated poverty was driven by inequality and unemployment in 2024.GDP per capita for 2024 was in the $6,000 to $6,400USD range and reflected its status as an upper-middle-income economy.

The South African government, primarily through the state-owned Airports Company South Africa (ACSA), invested approximately R861 million in capital expenditure (capex) on airport infrastructure during the 2023/2024 financial year.

This 2023/2024 expenditure was part of ongoing maintenance and refurbishment efforts. In March 2024, a larger, forward-looking plan was announced, with an allocation of R21.7 billion for infrastructure development across eight international airports over the subsequent four to five years, marking the largest investment since the 2010 World Cup preparations.

ACSA owned and operated most of the major airports in South Africa and was the primary vehicle for government investment in this sector. The R21.7 billion investment plan was set to be funded partly through ACSA’s own financial resources and half through long-term debt instruments and loans.

This significant capital programme included major upgrades to terminal buildings, cargo terminals, runways, and parking facilities at key airports like O.R. Tambo International, Cape Town International, and King Shaka International.

Apart from government investment, there were separate, significant private development projects, such as the R7 billion (approx. $390 million) redevelopment of the privately owned Cape Winelands Airport into a new international commercial airport.

In 2024, the South African government shifted its policy to stop providing ongoing operational bailouts to the state-owned airline, South African Airways (SAA). It  instead, focused on infrastructure investment in the broader aviation sector. Government maintained that SAA would no longer rely on state support and must fund its own operations and growth. In March 2024, it was announced there would no longer be  bailouts by government. The last known transfer was a R1 billion funding from the shareholder (government) during April 2023 to address final business rescue liabilities, which were settled by September 2023.

While not a direct investment in an airline’s operations, the government (as the majority owner) oversaw significant capital expenditure through the ACSA, a profitable state-owned enterprise, which announced a R21.7 billion capital investment pipeline over the next five years for airport infrastructure projects, including a new freight terminal at O.R. Tambo International Airport and upgrades at other key regional airports.

This investment was funded by ACSA’s own strong financial performance and balance sheet, not through government bailouts. ACSA is one of the only profitable state-owned companies in South Africa.

Rwanda’s income per capita (GDP per capita) for 2024 sat around $1,028 to $1,070 USD while poverty rate was 27.4%. In 2024, the Rwandan government’s investment in aviation sector focused financially on infrastructure development and strategic partnerships to boost tourism and trade. A $53 million aviation training center, funded partly by the African Development Bank, was under development in 2024, aimed at building local capacity in the aviation sector.

In 2024, the Rwandan government continued significant investment in the construction of the new Bugesera International Airport, a project with a total estimated cost of $2 billion and scheduled for completion by 2028. Government allocated USD485.4 million for the Kigali Bugesera International Airport construction project in its 2025/26 budget. This effort is primarily a public-private partnership (PPP) with Qatar Airways. Qatar Airways’ 60% stake in the new airport project was maintained in 2024, a key part of the funding and expertise strategy.

As for airline business, the government-owned national carrier, RwandAir, continued its expansion plans, which were supported by ongoing government investment and grants. Discussions progressed on a deal for Qatar Airways to acquire a 49% stakein RwandAir, a partnership expected to help the airline double its fleet and leverage Qatar’s global network. RwandAir focused on expanding its network, including increasing flight frequency on profitable routes like London and Paris.

In the same 2024, Rwanda ratified 12 air service agreements with various countries to expand route opportunities and operational rights for its national carrier.

Nigeria’s GDP per capita in 2024 estimated around $807 to $1,084 USD, reflecting economic challenges, sharp currency depreciation, and high inflation impacting average income despite a rebasing of the economy. Country’s poverty rate estimate was 46 to 47% with nearly half of the population living below the poverty line.

The sum of N63,317,450,275 was allocated to Nigeria’s aviation sector in 2024. The Cape Town Convention Practice Directions was signed to empower local airlines and ease aircraft acquisition for them while Air Peace, a Nigerian local airline received government policy support to break the monopoly of foreign carriers on the Lagos-London route and other international routes. Air service agreements were reviewed to enable more local airlines operate regional and international flights.

In 2025, N105,953,496,365 was budgeted for the Ministry of Aviation & Aerospace Development and the 2026 budget appropriation provided for N87,309,964.48 for the ministry and four aviation agencies, namely Nigerian Airspace Management Agency (NAMA)-N6,3000,000.00; Nigerian Meteorological Agency (NIMET)-N11,836,942,378; Nigerian College of Aviation Technology (NCAT)-N11,281,209.662 and Nigeria Safety Investigation Bureau (NSIB)-N7,244,873.309.

Nigeria Civil Aviation Agency (NCAA) and Federal Airports Authority of Nigeria (FAAN) are self sustaining revenue generating agencies, with projects funded by the federal government.

The ministry’s share of the 2026 budget is N50,646,938.934. Out of this sum, N1 billion is to be used for Mallam Aminu Kanu International Airport General Aviation Terminal Expansion. N4 billion would be refunded to Kebbi State Government for construction of Sir Ahmadu Bello International Airport, Birnin Kebbi while N5 billion would be spent on construction of corporate headquarters building and accommodation of ministry and agencies.

In 2025, the Federal Executive Council had approved N712 billion (about $500 million) for rehabilitation, upgrade and modernization of existing old terminal of Murtala Muhammed International Airport in Lagos. The project is to be funded through the Renewed Hope Infrastructure Development Fund.

It is noteworthy that Ghana’s government spent $250 million to build the Kotoka International Airport, Accra. AM