By our staff reporter
Ethiopia has made notable strides in resolving the issue of blocked airline funds, according to a recent report from the International Air Transport Association (IATA). As of October 2024, the amount of airline funds blocked from repatriation has decreased to $43 million, down from $149 million reported in April, marking a 71% decrease.
The IATA’s report highlights a global total of $1.7 billion in airline funds that remain inaccessible due to government restrictions, reflecting a slight improvement from the $1.8 billion reported earlier this year. Ethiopia, along with countries like Pakistan, Bangladesh, and Algeria, has seen reductions in blocked funds, indicating successful efforts to facilitate smoother repatriation processes.
Willie Walsh, IATA’s Director General, emphasized the critical need for airlines to repatriate their revenues to maintain aviation connectivity, which is vital for economic prosperity. “If airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses,” he stated.
The reduction in blocked funds is crucial for Ethiopia’s aviation sector and overall economy. Airlines depend on the ability to access their earnings to continue operations and provide essential services. The Ethiopian government’s initiatives to address these issues align with broader economic goals, including enhancing trade and tourism.
The report notes that nine countries account for 83% of the airline industry’s blocked funds, totaling approximately $1.43 billion. Ethiopia’s improvements contribute positively to this statistic, showcasing the effectiveness of recent measures taken by the government.
Despite these advancements, challenges persist in other regions, particularly in countries like Mozambique and those within the XAF/XOF zones, where blocked amounts are on the rise. The IATA continues to call for governments worldwide to eliminate barriers preventing airlines from repatriating their revenues in accordance with international agreements.
