The International Air Transport Association (IATA) has revealed that Mozambique is among the countries blocking airline revenues totalling 9.1 billion meticals (127 million dollars), according to Lusa.
According to IATA, these revenues are withheld due to restrictions that limit the repatriation of funds by airlines. In order for the companies to transfer the revenue to their home countries, they need government authorisation to convert the local currency into foreign currency, something that is not always allowed.
Overall, the value of the blocked revenue amounts to 113 billion meticals, of which around 63.8 billion meticals is concentrated in African countries, including Angola, Mozambique, Guinea-Bissau, Equatorial Guinea and Algeria.
IATA says that in the CFA franc zone of Central Africa, 16.8 billion meticals are being held in countries like Cameroon, Congo, Gabon, Equatorial Guinea, the Central African Republic and Chad. In West Africa, the blocked amounts totalled 5.2 billion meticals, covering countries such as Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo.
Among the African countries highlighted by IATA are Angola, with 5.7 billion meticals withheld, and Eritrea, with 5.3 billion meticals.
On the global stage, Pakistan tops the list of revenue withheld, with 22.2 billion meticals, although this figure has fallen by 6.3 billion meticals since April.
Despite a slight decrease in the total value of blocked revenue, which at the end of April totalled 114.9 billion meticals, IATA warns of the economic impact of this situation. ‘The withholding of revenue directly affects the financial sustainability of airlines and limits global connectivity, jeopardising economic growth,’ the statement said.
The association, which represents 340 members responsible for more than 80 per cent of the world’s air traffic, is calling on governments to take steps to resolve this issue and facilitate the repatriation of funds. Mozambique, along with other identified countries, is urged to adopt policies that comply with international standards and guarantee the regularisation of airline revenues.
