Mozambique has left the top position among countries with airline funds blocked from repatriation, having reduced this amount by half in six months, to the equivalent of US$91 million, according to data from IATA, the International Air Transport Association. In a report released at the beginning of June, IATA stated that airlines had, at the end of April, US$1.300 billion in blocked funds for repatriation in several countries, in a list led by Mozambique, which was then withholding US$205 million. In the report released on Wednesday, 10 December 2025, IATA states that blocked airline funds reached US$1.200 billion in October, with Mozambique dropping from first to fourth place with US$91 million, followed by Angola with US$81 million, in a list now led by Algeria with US$307 million.
“Out of total blocked funds reported, 93% are trapped in Africa and Middle East. IATA called on governments to lift all restrictions on currency repatriation and allow airlines to access their revenues in US dollars from ticket sales, cargo sales and other activities, as guaranteed in bilateral air service agreements and treaty obligations,” the IATA statement reads. On the other hand, IATA adds that these “restrictions include burdensome or inconsistent procedures to obtain repatriation approval, delays in obtaining approval, shortage or lack of foreign exchange or other limitations imposed by governments or central banks.” “Airlines need reliable access to their revenues in U.S.
dollars to keep operations running, pay their bills, and maintain vital air connectivity,” said the IATA director-general, quoted in the same report. Willie Walsh adds that, “with low margins and significant dollar denominated costs,” airlines “depend” on governments fulfilling that commitment: “It is also in the interest of governments to foster the economic catalyst that airlines provide by connecting their economies globally. That’s why we urge governments to facilitate the efficient repatriation of airline funds and prioritize this in foreign exchange allocations, even when currency is in short supply,” Walsh adds.
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The Confederation of Economic Associations (CTA) of Mozambique had already warned on 18 February that the lack of foreign currency in the market was then leading airlines to limit activity in the country, calling for urgent measures. “Airlines are starting to cut the Mozambican market because they are unable to repatriate their capital and meet the costs involved in their operation, which is natural. From the moment a business becomes unsustainable, any minimally prepared manager has to take action,” said, at a press conference, Muhammad Abdullah, then responsible for the Tourism area at the CTA.
Without access to foreign currency in the exchange market, he further noted, airlines began taking measures, which in a first phase involve offering fares in meticais (Mozambican currency) “more expensive” than in foreign currency, then moving on to reducing frequencies and cutting sales in the Mozambican market. He pointed at the time to Ethiopian Airlines as an example, which maintained operations to Mozambique but, he said, “blocked” sales in the country, which can only be made from abroad, in foreign currency.
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