Published on : 19/08/2022 – 16:26
International airlines are alarmed by restrictions on capital repatriation in some African countries. Some have therefore just announced a suspension of their activities.
Air transport is a globalized activity. Profits accumulate in a multitude of countries, but expenses are concentrated at the headquarters, in the country of origin of the company. For international carriers, no longer being able to repatriate their profits means exposing themselves to significant financial difficulties.
For months, the International Carriers Association (IATA) has been explaining this situation to the Nigerian authorities. Because, faced with an unprecedented currency crisis, Abuja has decided to strictly control, or even ban, capital outflows.
According to IATA, the Nigeria thus retains 450 million dollars belonging to foreign airlines. Among them, Emirates, which can no longer repatriate to Dubai a sum of around 90 million dollars. The Dubai company will therefore no longer serve Nigerian destinations from September 1. Nigeria is not the only country to have imposed such restrictions. Ethiopia, Zimbabwe, Eritrea and Malawi are doing the same.
According to IATA, a billion dollars are thus frozen by the central banks of these countries. African companies are also victims of these measures, specifies the association of African airlines (AFRAA). Kenya Airways has thus ceased its activities in Malawi. For AFRAA, there is currently no possible appeal. And there is a real risk of seeing other companies desert the skies of Africa.
