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Ecowas Targets Tax Cuts to Lower Air Travel Costs in West Africa

Daba Finance/Ecowas Targets Tax Cuts to Lower Air Travel Costs in West Africa
AFRICAN BUSINESS AND ECONOMYJanuary 22, 2025 at 10:03 AM UTC

TLDR

  • Ecowas Transport Ministers met in Lomé in November 2024 to address the high cost of air travel in West Africa
  • Taxes and fees on international plane tickets emerged as a key focus, with commitments to reduce these burdens by January 1, 2026
  • The union plans to cut passenger and security-related fees by 25% and eliminate non-compliant taxes to boost passenger traffic

Transport Ministers across West Africa's regional body Ecowas met in Lomé in November 2024 to address the high cost of air travel in the region. Taxes and fees on international plane tickets emerged as a key focus, with commitments to reduce these burdens by January 1, 2026.

An analysis by Jeune Afrique reveals disparities in ticket taxes across major airports. In Cotonou, taxes can reach 92,560 CFA francs (€141) for economy flights within Ecowas and 128,560 CFA francs for first-class tickets to non-ECOWAS countries. Abidjan imposes the lowest taxes: 30,000 CFA francs for African destinations, rising to 52,500 CFA francs for others. Lomé’s charges range from 37,500 to 42,500 CFA francs.

The union plans to cut passenger and security-related fees by 25% and eliminate non-compliant taxes to boost passenger traffic, regional integration, and economic growth. But axes are only part of Africa’s air travel cost challenges. ICAO opposes taxes not directly linked to aviation, including VAT, calling them trade barriers. Cotonou’s "tourism development tax," amounting to 55,000 CFA francs in business and first class, exemplifies the issue.

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Key Takeaways

Fuel prices, 12% above the global average, and high operational costs—aircraft leasing, maintenance, and personnel—also drive ticket prices. —while ECOWAS aims to standardize taxes, the broader goal of affordable travel requires addressing these structural challenges. Regional airlines argue that infrastructure costs often passed to passengers, should be seen as part of national development planning. Even with Ecowas’s planned ton ax reforms, achieving a regulatory framework remains uncertain. Addressing taxes alone will not resolve pricing issues, as competition, fuel, and operating costs continue to play significant roles in shaping ticket prices.

Business
Travel
Tourism
Aviation
Ecowas
West Africa

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