A case for collaboration and consolidation in African air cargo

African air cargo faces challenges due to limited connectivity, profitability, and slow policy implementation. While demand grows, infrastructure, regulation, and workforce development lag. Technology and collaboration are key to unlocking the industry's potential, as stakeholders seek to optimise operations, safety, and trade.

African airlines saw 8.5 percent year-on-year demand growth for air cargo in 2024. While the continent showed moderate demand growth, its market share in global air cargo is just 2 percent, according to a January 2025 report from the International Air Transport Association (IATA). This tells a lot about the state of air cargo and aviation in the continent.

"We are sabotaging our own growth by not being as connected as we should.”

These are the words of Allan Kilavuka, Group Managing Director and CEO of Kenya Airways.

“The policy framework within the African continent does not effectively support connectivity. It is not just about granting traffic rights; we also need to reduce the cost of operations. Africa is an extremely expensive place to run an airline,” he added.

Kilavuka, who is also the chairman of the African Airlines Association (AFRAA) Executive Committee, spoke at the AFRAA's SkyConnect Dialogues webinar in February 2025, along with the association’s Secretary General, Abderahmane Berthe.

"We have 54 states in Africa, many of which want national carriers with fewer than five aircraft—this is simply not viable. We need to work together to build a sustainable aviation industry."
Abderahmane Berthe, AFRAA

Profitability challenges: A case for consolidation
Despite a strong post-pandemic recovery, African airlines continue to face connectivity and profitability issues. Kilavuka emphasised that Africa remains the least connected continent, which is limiting trade, investment, and economic growth. Berthe echoed these concerns, stating that while some progress has been made, the overall pace of improvement remains slow.

"We need to see decision-makers prioritising aviation and enforcing recommendations to drive air transport development," he said.

Berthe stressed that airline collaboration and consolidation are critical to ensure long-term sustainability.

"We have 54 states in Africa, many of which want national carriers with fewer than five aircraft — this is simply not viable," he said. "We need to work together to build a sustainable aviation industry."

In a December 2024 report on the profitability of member airlines, IATA noted that all regions are expected to show improved financial performance in 2025 compared to 2024 and deliver a collective net profit in both years.

“However,” the report reads, “the collective net profit margin of African airlines is expected to be the weakest at 0.9 percent while carriers in the Middle East are most likely to be the strongest at 8.2 percent.”

Kilavuka also warned that most African airlines operate at a subscale level, making them unsustainable in the long run.

"If we continue fragmenting the sector, we will remain subscale, expensive, and inefficient," he said. "Airline collaboration is not a new concept — it has been successfully implemented in Europe and North America. We must work together to scale operations, reduce costs, and increase bargaining power."

“The policy framework within the African continent does not effectively support connectivity. It is not just about granting traffic rights; we also need to reduce the cost of operations. Africa is an extremely expensive place to run an airline.”
Allan Kilavuka, Kenya Airways

One of the biggest hurdles facing African aviation is the slow implementation of key policies, including the Single African Air Transport Market (SAATM) and the African Continental Free Trade Area (AfCFTA).

"These policies are meant to open up Africa, facilitate trade, and improve movement of people and goods," said Berthe. "However, implementation has been slow because of national protectionism and lack of political will."

Kilavuka added that resistance to SAATM comes from fears among smaller airlines that opening markets would favour larger carriers. He suggested a phased approach, starting with regional implementation before expanding continent-wide.

"We need to stop trying to eat the whole elephant at once," he said. "Let’s start with East Africa and then roll it out over time."

To ensure long-term sustainability, he outlined four key priorities for African airlines: operational efficiency, growth, cost management and safety.

As Kilavuka puts it, "Safety is our license to operate.”

“Unfortunately,” he added, “Africa is ranked lowest in terms of safety, in terms of the number of accidents and safety incidences. The best way to solve that problem is to learn from each other. Kenya Airways can offer our expertise and support to other airlines to support their safety culture.”

"The 'big man culture' in some African countries makes it difficult for people to report openly and welcome failure. If admitting a mistake means getting fired, people will stay silent, and that’s a huge safety risk.”
Tom Kok, AviAssist Foundation

Safety as the license to operate

Clearly, workforce development and safety training is a domain where Africa struggles and there are multiple reasons why the continent should pay more attention to it.

"We’ve seen in the safety domain that professional development is not available as much as we believe it should be, and as much as the industry needs it," said Tom Kok, MD, AviAssist Foundation.

Established in 1995, AviAssist Foundation is a non-profit organisation dedicated to aviation safety promotion in Africa. Over the years, it has developed a multi-pronged approach to aviation safety, including short professional courses on topics such as ground operations, human factors, and dangerous goods handling.

According to Kok, in terms of ground operation safety, one of the biggest issues is the high turnover of ground handling staff, making it difficult for companies to provide consistent safety training. Additionally, many employees in air cargo lack formal safety education, which is crucial in handling dangerous goods and ground operations.

"The handling of dangerous goods is certainly a problem in Africa. There are destinations where bigger airlines would love to transport more, but the handling is not up to international standards," he added.

One of the main barriers to effective training in Africa is affordability and accessibility. Many existing IATA and International Civil Aviation Organization (ICAO)-certified courses are expensive, making them unattainable for most African operators. AviAssist counters this by offering high-quality yet cost-effective training, made possible by industry sponsorships from Airbus, Boeing, ATR, and other stakeholders.

As he puts it, "There are very good IATA and The International Air Cargo Association (TIACA) courses out there, but they are still very expensive. If you have a new staff member earning a salary of $300-400 a month, you’re not going to send them to a course in Geneva for $3,000."

Additionally, a cultural challenge exists in some African aviation sectors where hierarchical structures discourage open reporting of safety issues. Kok describes this as the "big man culture," where lower-level employees hesitate to report concerns due to fear of consequences. AviAssist’s leadership courses aim to cultivate a culture of safety, communication, and teamwork, which are critical to aviation success.

"The 'big man culture' in some African countries makes it difficult for people to report openly and welcome failure. If admitting a mistake means getting fired, people will stay silent, and that’s a huge safety risk," he explained.

AviAssist continues to expand its footprint beyond East and Southern Africa, recently establishing a presence in West Africa through a partnership with Landover Aviation Business School in Nigeria.

"Some stakeholders within the cargo supply chain do not necessarily have the software needed to communicate in real-time and reliably with the rest of the ecosystem."
Gerald Furlong, Maureva

Technology as the solution

As discussed earlier, Africa’s air cargo industry is plagued by infrastructure limitations, regulatory complexities, fragmented logistics networks, and high operational costs. Many airlines and cargo operators struggle with manual processes, lack of real-time data, and inefficiencies in handling, tracking, and compliance.

Gerald Furlong, Managing Director of Maureva is someone who believes technology can transform Africa’s air cargo sector. His company, Maureva, provides cloud-based cargo management solutions that help airlines and air cargo operators optimise their operations, revenue, and compliance. Maureva’s MARGO Cargo Management System (CMS) streamlines cargo operations, reduces delays, enhances revenue management, and provides real-time visibility across an airline’s cargo network.

“Data analytics and digital solutions play a crucial role in overcoming hurdles by enhancing efficiency, optimising revenue, and improving overall supply chain resilience. MARGO reduces reliance on manual processes, thus improving accuracy and reducing delays through automated cargo handling and tracking, which also minimises revenue losses due to misbilling, underreporting, and fraud detection," he said.

In January 2025, Maureva announced a partnership with AFRAA to help airlines safeguard revenues, reduce operational costs, digitalise cargo operations, optimise flight and crew management, enhance competitive advantage, and gain actionable insights for informed decision-making.

Throughout the cargo operations process, the integration of data from multiple stakeholders also enables proactive anomaly detection at an early stage.

“The digitisation of cargo operations generates a centralised and comprehensive data repository, enabling the deployment of business intelligence (BI) tools, which in turn facilitate in-depth analysis of cargo activities,” Furlong added.

With the rise of e-commerce and the increasing demand for fast and reliable cargo deliveries, African airlines need systems that can streamline booking, inventory management, and real-time tracking.

"MARGO provides airlines with a cargo booking platform that supports their e-commerce operations for time-sensitive shipments, such as pharmaceuticals, perishables, and high-value goods. Through integrated and automated flight operations and DCS messages, airline customers can submit booking requests based on updated, real-time flight schedules and available cargo capacity, all under the supervision of the cargo manager,” he said.

Despite the benefits of digitisation, many cargo operators in Africa lack the software infrastructure.

"Some stakeholders within the cargo supply chain do not necessarily have the software needed to communicate in real-time and reliably with the rest of the ecosystem. Our MARGO solution is designed to offer these stakeholders the possibility to work directly on the airline’s Cargo Management System (CMS) platform for operational efficiency," he added.

"We use mainly passenger aircraft to transport cargo, which is not enough. We should develop dedicated cargo planes and dedicated infrastructure."
Ali Tounsi, ACI Africa

Infrastructure challenges
The air cargo industry in Africa holds significant untapped potential, but realising this growth will also require strategic investments in airport infrastructure and regional connectivity, according to Ali Tounsi, Secretary General of Airports Council International for Africa (ACI Africa).

In a discussion on the state of African aviation during a January 2025 AFRAA SkyConnect Dialogues, Tounsi highlighted cargo as one of the pillars of the future development of the continent. He noted that Africa's export-driven economy, with its abundance of natural resources and agricultural products, provides a strong foundation for expanding air cargo operations.

However, Tounsi acknowledged that the current air cargo infrastructure across Africa is lacking. "We use mainly passenger aircraft to transport cargo, which is not enough," he said. "We should develop dedicated cargo planes and dedicated infrastructure."

The development of specialised cargo terminals and the attraction of dedicated cargo airlines will be crucial, Tounsi emphasised. He pointed to recent investments in new cargo facilities in countries like Egypt as positive steps but stressed the need for a more coordinated, continent-wide approach.

Capacity challenges

Tounsi’s wish to see more freighters is in line with the needs of African economies and exporters in the continent. For instance, the Kenyan floriculture sector, which accounts for 18 percent of the country’s total exports, is in the midst of one of its top seasons of Valentine’s Day but is struggling with air freight rates and capacity.

“Year after year we have seen a sharp increase in air freight cost on top of further reduction in freight capacity out of Kenya to major export destinations,” says the CEO of a prominent flower grower and exporter in Kenya.

Meanwhile, Darryl Judd, Director - Advisory Services, Logistics Executive Group, pointed out that Kenya’s flower industry is facing a critical airfreight capacity crunch with airlines shifting capacity towards more profitable routes, particularly to China, in a recent LinkedIn post.

“Kenyan growers are struggling to get their products to European markets. Some exporters are being forced to destroy as much as 20 percent of their produce due to lack of space on flights,” he wrote.

“The ongoing disruptions in ocean freight, exacerbated by Red Sea security risks, have further limited alternative transport options, making the situation even more fragile. While other flower-producing regions benefit from backhaul e-commerce capacity, Kenya lacks this cushion, leaving exporters vulnerable to shifting market dynamics,” he added.

Kenya’s flower industry has traditionally relied on airfreight to ensure fast delivery of day-fresh exports. Major events like Valentine’s Day and Mother’s Day create peak demand, making speed and reliability crucial. Any delays could lead to unsellable flowers and lost market opportunities.

For instance, the recent report by COLEAD on the Kenyan flower industry pointed out notable differences between Ethiopia and Kenya in the organisation of air freight for flower exports.

Ethiopia operates a highly integrated system, with Ethiopian Airlines playing a central role in supporting the floriculture sector.

“The airline has invested in advanced cargo facilities, including a state-of-the-art terminal comparable to those at Schiphol, Singapore Changi, and Hong Kong,” it reads.

During the Covid-19 pandemic, Ethiopian Airlines maintained and even expanded its cargo capacity, supporting the continuity of flower exports

In contrast, Kenya’s air freight infrastructure is less centralised, relying on multiple airlines and logistics providers, which has led to higher transportation costs and logistical inefficiencies.

“These challenges were especially present during the Covid-19 pandemic, resulting in limited freight capacity and increased costs for flower exports,” the report reads.

“Additionally,” it added, “the Kenyan government is less directly involved in the air cargo sector than in Ethiopia, where government collaboration with Ethiopian Airlines provides consistent support to the floriculture industry.”

"There are a lot of potential opportunities for linking Africa with Europe, having alternative airports within the networks, and offering alternative solutions for carriers to come into Europe.”
Fabrice Pauquet, XCR Airport

Building strong connections
Many companies and institutions worldwide are trying to leverage the growth potential of African air cargo by establishing and strengthening the connection today.

For instance, Fabrice Pauquet, the Managing Director of Paris Châlons Vatry Airport (XCR Airport), sees significant potential in expanding the airport's reach into the African market.

XCR Airport, located just 150 kilometres from Paris, is positioning itself as an attractive alternative for carriers looking to connect Africa with Europe. Its key advantages include a long 3,800-meter runway that can accommodate all aircraft types and the flexibility to handle oversized cargo and dangerous goods without the restrictions faced by larger hubs.

"There are a lot of potential opportunities for linking Africa with Europe, and to have alternative airports within the networks and offer alternative solutions for the carriers to come into Europe," said Pauquet.

Importantly, XCR has no curfew or slot limitations, allowing it to offer 24/7 operations. "We can accept aircraft which are not anymore accepted within the same huge airport facilities you can have so within Europe," Pauquet explained. This makes XCR an appealing option for carriers looking to bypass congestion and noise restrictions at major European airports.

While XCR's current connectivity to Africa is limited to charter flights, primarily for the automotive industry, Pauquet is eager to change that. "We want to attract some carriers from Africa because we have the flexibility to adapt our resources to indulge the flight, even day or night, without any problem," he said.

The airport's strategic location and excellent road connectivity, with the ability to move cargo from tarmac to truck in under three hours, position it well to serve as a distribution hub for e-commerce and other time-sensitive goods flowing between Africa and Europe. Pauquet noted that e-commerce currently accounts for 80 percent of XCR's business, with the majority of that traffic originating from China.

In fact, XCR Airport is participating in the upcoming air cargo Africa 2025 exhibition in Nairobi to showcase its capabilities to a wider African audience. "We can make some tailor-made services for every single customer," Pauquet said. "If they are coming with a dedicated process for the cargo, we can adapt our staff and our facility to handle the request."

The African air cargo industry presents a compelling case for collaboration and consolidation. While demand for air cargo grows, airlines grapple with connectivity, profitability, and policy implementation challenges. Technology offers solutions for optimisation and efficiency, but infrastructure investment and workforce development are also essential. By addressing these multifaceted issues and fostering collaboration, Africa's air cargo sector can unlock its full potential and contribute significantly to the continent's economic growth and global trade.

The article was originally published in the February 2025 issue of The STAT Trade Times.