JUne 04, (THEWILL) – Five countries including Nigeria, Bangladesh, Algeria, Pakistan and Lebanon account for 68.0% of blocked funds in Africa.
Nigeria is topping the list with a huge sum of $812.2 million; Bangladesh $214.1 million and Algeria $196.3 million.
While Pakistan is holding on about $188.2 million, in possession of Lebanon is $141.2 million blocked funds operating in their countries.
Listing the figures in a statement issued on Sunday, the International Air Transport Association (IATA), warned that rapidly rising levels of blocked funds are a threat to airline connectivity in the affected markets.
According to IATA, the industry’s blocked funds have increased by 47% to $2.27 billion in April 2023 from $1.55 billion in April 2022.
Explaining the dangers of blocked funds in Africa, IATA’s Director General, Mr Willie Walsh, said, “Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets. Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”
Walsh ​​​​​urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.
IATA (International Air Transport Association) represents some 300 airlines comprising 83% of global air traffic.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
