MEA now accounts for 93% of the world’s blocked airline funds as Algeria tops the list

Algeria has overtaken Mozambique to become the world’s most difficult market for airlines’ revenue repatriation, with USD 307 mn — out of a global total of USD 1.2 bn — now trapped in the country. Unlike previous years when “blocked funds” were largely a byproduct of raw FX shortages, the bottleneck in Algeria is mainly bureaucratic after a new regulation from the Trade Ministry reportedly added months to the FX funds repatriation cycle.

Not just Algeria: The Middle East and Africa region (MEA) accounted for a staggering 93% of the world’s total as of October 2023. Lebanon remains a constant feature on the list, with USD 138 mn frozen — largely a symptom of the country’s multi-year FX liquidity problems. Other countries involved include Angola, Eritrea, Zimbabwe, Ethiopia, Pakistan, and Bangladesh.

Why it matters: stable air connectivity to these markets is at risk

This concentration of funds repatriation risk in the MEA corridor could force carriers to reconsider their connectivity to unstable markets. When airlines cannot access ticket and cargo revenue to pay for USD-denominated leases and fuel, the inevitable result is a contraction in route frequency, making it harder for businesses to manage time-sensitive cargo and international trade flows.

Remember Nigeria? Emirates suspended all passenger flights to Lagos in 2022 after USD 85 mn in revenue became trapped, before returning to Lagos in 2024 after the Central Bank of Nigeria cleared 98% of the backlog. Etihad also halted its Nigeria routes in 2022, before resuming them earlier this year.