Algeria Surges to Top as Airline Funds Blocked in Africa and Middle East Hit \$1.2 Billion
The aviation sector across Africa and the Middle East is facing a mounting crisis as airline funds totaling \$1.2 billion remain trapped under government controls as of the end of October 2025. This staggering figure, released by the International Air Transport Association (IATA), underscores the persistent challenge of currency repatriation for airlines operating in these regions. Notably, 93% of these blocked funds are concentrated in Africa and the Middle East, a situation that is increasingly threatening the financial stability and operational continuity of carriers serving these markets.
While there has been a modest improvement—USD 100 million more has been released since April 2025—the overall picture remains bleak. Airlines continue to grapple with a complex web of restrictions, ranging from burdensome approval procedures and documentation requirements to chronic shortages of foreign exchange. These obstacles are not only hampering the ability of airlines to access their revenues from ticket and cargo sales but are also undermining the vital air connectivity that supports economic growth and job creation across the continent .
For the first time, Algeria has emerged as the leading country in terms of blocked airline funds, with a reported USD 307 million currently inaccessible. This sharp increase is attributed to a new approval requirement imposed by the Ministry of Trade, which has added yet another layer of bureaucracy to an already challenging process. The situation in Algeria is emblematic of a broader trend across the region, where regulatory hurdles and inconsistent policies are making it increasingly difficult for airlines to repatriate their earnings.
Other countries contributing significantly to the crisis include the XAF Zone (comprising Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon) with USD 179 million, Lebanon at USD 138 million, Mozambique with USD 91 million, and Angola at USD 81 million. Additional notable figures come from Eritrea (USD 78 million), Zimbabwe (USD 67 million), Ethiopia (USD 54 million), Pakistan (USD 54 million), and Bangladesh (USD 32 million). Collectively, these ten countries account for 89% of the total blocked funds, amounting to USD 1.08 billion .
The impact of these restrictions is far-reaching. Airlines rely on timely access to their revenues in U.S. dollars to cover operational costs, pay suppliers, and maintain essential air links. The inability to repatriate funds not only strains airline finances but also threatens the broader ecosystem of tourism, trade, and investment that depends on robust air connectivity. As IATA’s Director General Willie Walsh emphasized, “Airlines need reliable access to their revenues in U.S. dollars to keep operations running, pay their bills, and maintain vital air connectivity.” He further highlighted that governments have made commitments in bilateral air service agreements to allow for the unfettered repatriation of funds, and that honoring these commitments is crucial for sustaining the economic benefits that aviation brings .
In the case of the XAF Zone, there has been a slight reduction in blocked funds since April 2025, dropping from USD 191 million to USD 179 million. However, airlines continue to face significant challenges, particularly with the internal three-step validation process managed by the Bank of Central African States (BEAC). Despite submitting all required documentation, carriers report ongoing delays and backlogs, prompting renewed calls for streamlined procedures and faster processing times .
The root causes of these currency restrictions are often linked to political and economic instability, which drive governments to impose capital controls and prioritize foreign exchange allocations for other sectors. While these measures may offer short-term relief for national treasuries, they come at a high cost to the aviation industry and, by extension, to the economies that depend on it. IATA has reiterated that the long-term benefits of supporting air transport—such as increased trade, tourism, and employment—far outweigh the immediate fiscal gains from withholding airline revenues .
For African aviation stakeholders, the implications are profound. The ongoing blockage of funds not only jeopardizes the financial health of international carriers but also risks reducing the frequency and availability of flights to and from the continent. This could have a cascading effect on tourism, business travel, and cargo operations, ultimately limiting Africa’s ability to connect with global markets and attract investment. The situation is particularly acute for countries like Algeria and those in the XAF Zone, where new regulatory hurdles threaten to further isolate local economies from international networks.
In response to the crisis, IATA has launched a dedicated web page to provide greater transparency on the status of blocked funds, offering quarterly updates and background information to industry stakeholders. The association continues to urge governments to remove unnecessary barriers, streamline approval processes, and prioritize the allocation of foreign exchange for the aviation sector—even in times of scarcity. These steps are essential for restoring confidence among airlines and ensuring that Africa remains an attractive and accessible destination for travelers and investors alike.
Looking ahead, the African aviation industry must remain vigilant and proactive in advocating for policy reforms that facilitate the free movement of capital. As global competition intensifies and new markets emerge, the ability to repatriate revenues efficiently will be a key determinant of success for airlines and the broader tourism sector. By addressing these challenges head-on, African countries can unlock new opportunities for growth, strengthen their position in the global travel landscape, and ensure that the benefits of aviation are shared widely across the continent.
