Ethiopia prioritises local airlines over liberalisation

Ethiopia has ruled out fully opening its aviation market to foreign private airlines for now, saying the country must first strengthen its local industry, according to an APA News report on February 23rd. 

Yohannes Abera, Director General of the Ethiopian Civil Aviation Authority, said, “The broader aviation ecosystem and legal and financing frameworks must be strengthened before any liberalisation is considered.”

He explained that the system needs improvement before any liberalisation can take place; the legal rules, financing systems and the overall structure of the sector must be strengthened. 

He noted that domestic private airlines still lack the capacity to operate on their own if the market were opened to strong international competitors. According to him, the sector faces several challenges, including regulatory limits and operational difficulties.

Abera said reforms are already underway, but will take time to show results. “The whole system needs adjustment, including the legal frameworks and the concerns raised by operators,” he added, noting that many of the issues are being addressed step by step.

As part of recent changes, the government has allowed aircraft to be used as collateral for bank loans. This move is meant to help local airlines gain better access to funding. Officials are also reviewing other sector-specific problems that impact private operators.

At present, Ethiopia has 12 licensed private airlines. Two more companies are in the process of entering the market. One of Ethiopia’s major air carriers, Ethiopian Airlines, recorded a revenue of $4.4 billion in the first half of the 2025/26 fiscal year. Additionally, Ethiopia’s economy is expected to grow by more than 10% this year. 

While the government has not ruled out opening the sector to foreign investors in the future, Abera said this would only happen once local operators are stronger and the regulatory system is better prepared.

For now, Ethiopia’s focus remains on building local capacity and creating a more stable and competitive aviation environment before taking further steps toward market liberalisation.

 

APA News, Maghrebi