The AU announced a US$30bn program at the Luanda financing summit to upgrade airports, air navigation systems and institutional capacity, backing a gap analysis by AFCAC, ICAO and the World Bank.
The African Union has launched a US$30 billion aviation modernization plan to upgrade airports and continental airspace systems, the bloc announced at the III Financing Summit for Africa’s Infrastructure Development in Luanda on 29 October 2025. The programme, designed to advance the Single African Air Transport Market (SAATM), allocates about $10bn for airport upgrades, $8bn for communications, navigation and meteorological systems, and $12bn for institutional reforms and private sector mobilisation.
The AU says the funding target responds to a Continental Aviation Infrastructure Gap Analysis conducted with the African Civil Aviation Commission (AFCAC), ICAO and the World Bank that estimates Africa will need US$25-30 billion over the next decade to close critical aviation infrastructure shortfalls. The announcement comes amid forecasts that passenger traffic could grow from about 160 million in 2024 to near 500 million by 2050, intensifying the case for accelerated investment.
Why the African Union $30 billion aviation plan matters for SAATM and trade
- Connectivity and trade: Better airports and airspace integration underpin the AU’s Single African Air Transport Market and the AfCFTA by lowering transport costs and shortening cargo lead times.
- Safety & efficiency: Modern communication, navigation and meteorological systems (CNS/ATM) such as A-CDM and SWIM will reduce delays, improve predictability and strengthen safety oversight.
- Green and digital transition: The AU plans to integrate renewable energy at airports and digital management systems to attract climate finance and build resilient infrastructure.
Timeline & funding mechanics
- Announcement: 29 October 2025, III Financing Summit, Luanda.
- Total target: US$30 billion over the next decade.
- Allocation (approx.):
- $10bn; airport and aerodrome infrastructure.
- $8bn; communication, navigation, meteorological systems.
- $12bn; institutional reforms, project preparation, attracting private investment.
- Mobilisation strategy: $10bn in catalytic public finance to leverage ~$20bn in private/institutional capital via DFIs and AUDA-NEPAD.
Context & expert perspective
The AU’s plan builds on a continental gap analysis led with AFCAC, ICAO and the World Bank, which found significant shortfalls in runway capacity, terminal facilities, air navigation services and meteorological coverage. ICAO and the World Bank’s regional reports have repeatedly flagged the financing gap and the need for coordinated reform to unlock private capital.
Industry experts say prioritising air navigation modernisation (CNS/ATM), safety oversight capacity and green energy at airports can deliver outsized benefits: lower operating costs, fewer delays and better integration of intra-African routes into global supply chains. However, experts also note that success depends on robust project preparation, transparent procurement, regulatory harmonisation and credible commitments from member states. (AU press materials and the gap analysis highlight these prerequisites.)
Potential impacts
- Passenger & cargo growth: Improved capacity and predictive operations could support intra-African connectivity and tourism.
- Economic: Lower logistics costs and faster cargo movement could benefit regional manufacturing and trade under AfCFTA.
- Jobs & skills: Airport projects and air traffic modernisation are expected to drive demand for construction, avionics, MRO and air traffic management skills.
Risks & caveats
- Funding pipeline: securing $20bn in private/institutional investment will require bankable projects and clear legal/regulatory frameworks.
- Oversight & execution: past infrastructure programmes in the region have struggled with delays and cost overruns; strong project preparation is critical.
What’s next? Industry outlook
Implementation will centre on project preparation via AUDA-NEPAD and DFIs, harmonising regulatory standards across states, and staged procurement for airport and CNS upgrades. If executed well, the programme could accelerate SAATM delivery and position Africa to capture a larger share of global aviation growth, but outcomes hinge on political commitment and finance mobilisation.
Sources
- African Union, press release: “African Union Commissioner Outlines US$30 Billion Infrastructure Investment Plan at Luanda Summit”, 29 Oct 2025.
- Nairametrics, “African Union to spend $30 billion on Africa’s airports and airspace systems”, Caleb Obiowo, 30 Oct 2025.
- ICAO / Continental Aviation Infrastructure Gap Analysis (background).
- World Bank, Air Transport Annual Report / sector context.
