Addis Ababa (Diplomat.so) - Ethiopian Airlines, the Addis Ababa-based carrier, on Thursday May 7, joined the IATA Billing and Settlement Plan pilot programme for Somalia during the IATA Focus on Africa conference in Addis Ababa, marking a step toward a nationwide rollout next month.
The International Air Transport Association (IATA) said the pilot phase includes Ethiopian Airlines and several other carriers ahead of the planned full activation of the Billing & Settlement Plan (BSP) in Somalia. The system is expected to be opened to all airlines and more than 300 travel agents operating in the country by the end of May, according to a statement released at the conference.
The BSP is a global financial settlement platform that streamlines ticket sales and remittance processes between accredited travel agents and airlines. It currently connects more than 400 airlines and tens of thousands of agents worldwide, processing high-volume transactions through a standardized clearing mechanism.
"Somalia stands at a pivotal moment of transformation in its aviation sector. Growing connectivity regionally and globally underpins our ambition to revitalise the economy of Somalia and position Mogadishu as a transport hub on the Horn of Africa,” said Mohamed Farah Nuh, Somalia’s minister of transport and civil aviation.
He added that the government is prioritizing aviation modernization as part of broader economic recovery efforts, emphasizing regulatory reforms and infrastructure rebuilding to attract international carriers and improve passenger and cargo movement efficiency.
Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, said the initiative reflects long-term cooperation between Somalia and international aviation bodies. "We commend the steps taken by the Somali government to modernise and rebuild its aviation infrastructure,” he said. "The government recognises the significant economic benefits that air travel can deliver, and we are pleased to support them on that journey.”
He further noted that accelerating secure and cost-efficient financial services remains central to IATA’s Focus Africa initiative. According to figures shared at the event, the BSP processed more than 700 million transactions across over 180 countries in 2025, with a total value exceeding USD242 billion.
Delegates at the conference in Addis Ababa described steady engagement between Somali officials, airline representatives, and travel industry stakeholders. A Mogadishu-based travel agent attending virtually told Diplomat News Network that the introduction of BSP could reduce delays in ticket settlement cycles and improve cash flow stability for local agencies.
Somalia’s aviation sector has undergone gradual rebuilding efforts in recent years following prolonged institutional disruption. Authorities have focused on restoring regulatory capacity, strengthening air navigation systems, and expanding international partnerships to improve connectivity with regional hubs.
The introduction of BSP is expected to align Somalia’s financial settlement systems with global aviation standards, reducing reliance on fragmented payment channels and improving transparency across airline-agent transactions. Industry observers view the rollout as a structural step toward integrating Somalia more deeply into international air transport networks, particularly along key Horn of Africa routes.
