Ethiopia has ruled out an immediate full opening of its aviation market to foreign private airlines, signalling a strategic push to strengthen domestic operators before exposing them to global competition.

Speaking at a sector meeting on Monday, February, 23, 2026, Yohannes Abera, director general of the Ethiopian Civil Aviation Authority, said the country must first reinforce its aviation ecosystem, legal structures, and financing frameworks.

“The broader aviation ecosystem and legal and financing frameworks must be strengthened before any liberalisation is considered,” Abera said, warning that the domestic sector still lacks the institutional depth to compete independently on the global stage.

The policy stance from Ethiopia, home to Africa’s largest aviation market, reflects a cautious balancing act between market openness and the protection of local industry growth. Officials say private domestic carriers continue to face structural hurdles, including regulatory constraints and operational bottlenecks.

Abera noted that reforms are already underway but will require time to deliver results. “The whole system needs adjustment,” he said, adding that concerns raised by operators are being addressed gradually.

One notable reform allows aircraft to be used as collateral for bank loans, a move aimed at improving access to finance for local airlines. Authorities are also reviewing additional sector-specific challenges affecting operators.

Ethiopia currently has 12 licensed private airlines, with two more companies in the process of entering the market.

While officials acknowledge that foreign participation could come later, any liberalisation will depend on the readiness and resilience of domestic carriers within a stronger regulatory framework.

The measured approach underscores Ethiopia’s ambition to build globally competitive aviation champions from within before fully opening its skies. (Business Insider Africa)

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