UGANDA PLANS TO RAISE $388 MILLION TO REVIVE ITS NATIONAL CARRIER
If all goes well, Uganda will revive and launch its national carrier, Uganda Airlines, by September, thanks to a plan by the government to raise....
If all goes well, Uganda will revive and launch its national carrier, Uganda Airlines, by September, thanks to a plan by the government to raise about $388 million.
This follows the Cabinet’s approval of a blueprint last year detailing how Uganda Airlines could start flights from Entebbe across East Africa before going international.
The government, which is the principal shareholder, will raise $70 million in four tranches over a three-year period. The first injection could be in the upcoming budget statement. Another $318 million required for aircraft acquisition will be raised through a mix of financing tools.
“The business and implementation plan proposes that these funds be sourced from external financiers, through a combination of banks, private equity firms, international aircraft finance lenders, lessors, government borrowing, export credit agencies and/or cash.”
The airline was grounded fifteen years ago. The plan proposes an initial a fleet of four Bombardier CRJ900 and two wide-body A330-200 aircraft.
Works and Transport minister, Ntege Azuba, has been tasked with the responsibility of supervising the project for which a taskforce was appointed in 2016. It is the taskforce that drew up the financing plan.
Mr Ntenge said the re-establishment of Uganda Airlines aims at improving air transport connectivity to and from Uganda in order to enhance the country’s competitiveness.