AU Group MEA and EIRS Introduce New Aviation Finance Platform to Expand Access to Aircraft Financing across Africa
AU Group MEA, the global specialist in credit and political risk insurance, and EIRS, the insurance arm of ETG Group, have announced the launch of AU EIRS Aviation Cover, an aviation financing solution designed to help unlock capital for airlines and aviation stakeholders across Africa and the Middle East.
The launch comes at a time when Africa’s aviation sector is experiencing strong growth but continues to face significant financing constraints.
The International Air Transport Association estimates that aviation contributes approximately US$75 billion to Africa’s GDP and supports 8.1 million jobs, while passenger traffic across the continent is projected to continue growing strongly over the coming decades.
Yet despite growing demand for air travel, access to financing remains a major challenge across many African markets. More than 1,500 aircraft are currently on order across Africa (and the wider Middle East region), while many airlines continue to rely on ageing fleets and limited funding sources.
Banks often remain cautious about emerging-market airline credit exposure, mid-life aircraft financing remains underserved, and traditional export credit agency structures are frequently lengthy and restrictive.
AU EIRS Aviation Cover was developed to address these challenges directly. Backed by A-rated global insurers, the solution protects lenders against borrower default on aircraft and engine financing transactions, providing up to 90% indemnification of missed principal and interest payments.
Unlike traditional aviation non-payment insurance structures, the platform covers new aircraft, mid-life and refurbished aircraft, new and refurbished engines, allowing financiers to support the assets that many African airlines use to grow and modernize their fleets.
Built for Africa’s Aviation Reality
Africa’s airline sector differs from many mature aviation markets. The average fleet age of African carriers is approximately 13 years, and many airlines expand through quality used aircraft, refurbished fleets and engine acquisitions rather than factory-new deliveries.
While existing aviation financing platforms have traditionally focused on new aircraft transactions, AU EIRS Aviation Cover was designed specifically to support the realities of fleet development in emerging markets.
“Our objective is simple: help remove barriers that limit access to aviation capital across Africa and the Middle East,” said Aurélien Paradis, CEO of AU Group MEA.
“By transferring lender risk to highly rated insurers, we can help create greater confidence among banks and financiers while providing airlines with access to financing solutions that better reflect how aviation growth occurs in this region.”
Combining Global Capacity with Regional Expertise
The partnership leverages AU Group MEA’s nearly century-long experience in credit insurance, surety and political risk advisory alongside EIRS and ETG Group’s extensive footprint across African markets.
AU Group MEA brings access to global insurer capacity and expertise in structuring complex risk-transfer solutions, while EIRS provides regional relationships, local market intelligence and on-the-ground insights.
“Too often, financing solutions are developed outside the region without fully reflecting local market realities. This partnership combines international expertise with regional knowledge to create a platform built specifically for Africa,” said Abhishek Jain, CEO, EIRS.
Supporting the Next Phase of Aviation Growth
The launch comes as African aviation continues to demonstrate strong momentum. African airlines recorded robust passenger growth in recent years and continue expanding networks, investing in fleet renewal and strengthening regional connectivity.
Leading carriers such as Ethiopian Airlines, Airlink, and RwandAir have continued to add routes and invest in fleet growth to meet increasing travel demand across the continent.
However, financing remains one of the sector’s most significant constraints. By reducing lender risk and broadening financing options beyond traditional structures, AU Group MEA and EIRS believe the new platform can support increased investment, fleet modernization, stronger regional connectivity and long-term aviation sector growth.
