African governments need to consider harmonising tax structures

High taxes, inconsistent policies, and reliance on aviation revenues can stifle the development of a competitive and sustainable aviation sector. To foster greater air connectivity, economic growth, and regional integration, it is critical for African governments to consider harmonising tax structures, reducing excessive charges, and pursuing alternative funding methods for aviation infrastructure. Regional cooperation will be key to addressing these issues and ensuring the continued development of Africa's aviation industry.

According to UNWTO, 66.3 million international tourists visited Africa, bringing in a total receipt of USD 38 billion. The contribution of travel and tourism to the global GDP is around USD 81 billion, which is greater than automotive manufacturing, health and banking, showing the importance of this sector for African Economy.

The air transport industry is still non-profitable on the continental, with negative profitability for passengers because of many challenges faced by the airlines. Among those challenges is the high level of taxes and charges. Air transport is perceived as a luxury service across the continental. Then, governments, airports and service providers tend to overcharge airlines even though man need help to survive.

In the top 10 most expensive countries in terms of ticket taxes, charges and fees, Gabon is the first, followed by Sierra Leone and Nigeria. Niger, Benin and Ghana are also part of the list. The less expensive countries for international departure ticket taxes are Libya, Malawi, Lesotho, and Algeria. The list of 10 less expensive countries also includes Eswatini, Tunisia, Botswana, Morocco, Sao Tome, Angola and South Africa, which are countries with significant traffic. Out of fifty-three countries, 19 charge above the continental average.

Thirteen charge passengers above USD 100 compared to 13 in 2022, emphasising the continental increase. 26 countries charge USD 50 and more.

When considering African sub-regions, Western African region is the most expensive, with an average amount of USD 109.5 taxes, charges and fees paid for international departures (USD 96.5 in 2022. Central Africa is following, with USD 106.6 on average, an increase of USD 10 compared to 2022. Eastern and Southern African regions, even if affordable compared to the previous, remain more expensive than neighbouring regions, charging USD 63.32 and USD 34.5 per passenger respectively.

Regional departures taxes, charges and fees

In Africa, air passengers pay on average USD 59.05 different taxes, charges and fees for regional departures, representing an average amount of USD 59.05. This represents an increase compared to 2022 when the average was USD 57.4.

In the top 10 most expensive countries in terms of ticket taxes, charges and fees, Sierra Leone is the first, followed by Gabon and Nigeria. Benin and Djibouti are also part of the list. The less expensive countries for regional departure ticket taxes are Libya, Malawi, Lesotho, and Algeria. The list of 10 less expensive countries also includes Eswatini, Botswana, Morocco, South Africa, Togo and Sao Tome.

Transfer and arrival taxes, charges and fees

42 countries now apply transfer in Africa in 2024 compared to 35 in 2022, over the 52 selected. Transfer taxes, charges and fees increase ticket price by an average amount of USD 34.4 compared to USD34.5 in 2022.