Almost 60% of airline funds, blocked from repatriation by governments around the world, were being held back by African countries, the International Air Transport Association (IATA) has reported. (IATA is the global representative body for the airline industry.) Of the global total of $1.7-billion in blocked airline funds, about $1-billion were being held by African countries.

The total of $1.7-billion did represent a slight improvement over the total for blocked airline funds in April, which had been $1.8-billion. And there had been changes in the list of the worst-offending countries, with some falling down the list or even leaving it entirely, but others moving up it. Currently, just nine countries and currency blocs account for 83% ($1.43-billion) of all blocked airline funds.

“Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria and Ethiopia,” highlighted IATA director-general Willie Walsh. “At the same time, amounts are rising in the XAF/XOF zones and Mozambique. Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines. This unfortunate game of ‘whack-a-mole’ is unacceptable. Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.”

Pakistan still ranked first in terms of amount of funds being withheld, at $311-million. But this was an improvement on the figure of $411-million being held in April. The main problem with Pakistan is the very slow processing of audit and tax exemption certificates.

The second worst offender is the XAF Zone – that is, the Central African CFA Franc Zone, composed of Cameroon, the Central African Republic, Chad, the Republic of Congo, Equatorial Guinea and Gabon (not all of these countries are blocking airline funds). Countries in the XAF Zone held back $235-million in airline funds.

Then followed Bangladesh ($196-million – but this was a large decrease from the $320-million blocked in April), Algeria ($193-million, but again a decrease over the April figure, which had been $286-million), Lebanon ($142-million), Mozambique ($127-million), Angola ($80-million), Eritrea ($75-million) and the XOF Zone ($73-million). (The XOF Zone is the West African CFA Franc Zone, composed of Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo; again, not all of these countries were blocking funds.)

Ethiopia is no longer on the list of the worst offenders, having cut its blocked funds total from $149-million in April to $43-million now. But Bolivia has entered the category of countries blocking airline funds, with $42-million blocked so far. Since April, the amount of funds blocked by the XAF Zone has increased by $84-million, the total being blocked by Mozambique has also risen by $84-million, and the amount being withheld by the XOF Zone has grown by $73-million.

“No country wants to lose aviation connectivity, which drives economic prosperity,” pointed out Walsh. “But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly.”