The federal government and the African Export-Import Bank (Afreximbank) unveiled AVLEASE, a continental aircraft leasing platform headquartered in Lagos, on Wednesday, 14 July 2021, in a bid to reduce African airlines' dependence on foreign lessors.
Officials said the platform, capitalised with an initial $100 million in support from Afreximbank, would provide Nigerian and other African carriers with leasing terms structured to account for the continent's foreign exchange constraints, an issue that has repeatedly strained airline balance sheets.
Addressing a Long-Standing Bottleneck
Industry analysts said the near-total absence of aircraft leasing and financing capacity based on the continent had long forced African airlines to lease aircraft from lessors in Europe, Asia, and North America, often at higher cost and on terms poorly suited to local market conditions.
Aviation minister Hadi Sirika said the platform was expected to begin its first lease transactions within the following year, with Nigerian carriers among the airlines expected to be considered for early agreements as the platform builds out its initial aircraft portfolio.
