By Samuel Ssenono
Uganda Airlines has signed a Shs3.7 trillion deal with Boeing to buy 10 new aircraft, in what government says is a push to expand the national carrier’s reach and cut Uganda’s dependence on foreign transit hubs.
The agreement was signed on Wednesday at State House Entebbe, with President Yoweri Kaguta Museveni witnessing the ceremony.
Uganda Airlines Acting Chief Executive Officer Girma Wake signed for the airline, while Boeing Executive Vice President and Head of Sales for Africa Anbessie Yitbarek signed for Boeing.
The deal covers eight passenger aircraft and two freighters. Each of the passenger aircraft will carry 294 passengers. The cargo side includes a Boeing 767 wide-body converted freighter and a Boeing 737 Boeing Converted Freighter.
Works and Transport Minister Fred Byamukama said the project is expensive, but necessary if Uganda is to build an airline that connects the country directly to major markets.
“It is a very expensive project, but the President guided that we have no other option. We need to build our own airline. That is how Uganda can be connected to the rest of the world,” Byamukama said.
He said Boeing will first deliver four passenger aircraft before the rest of the fleet is brought in.
“Today we have signed the contract, and they will first deliver four aircraft, each with the capacity to carry 294 passengers at once,” he said.
Byamukama said the aircraft will help Uganda open more direct routes and reduce the number of travellers, investors and tourists who have to connect through other countries before reaching Entebbe.
“This means Uganda will be connected directly to the rest of the world. We shall bring many investors directly to Uganda,” he said.
Government is expected to make an initial payment of Shs460 billion. Byamukama said the money will come from domestic revenue collections.
“Tomorrow, we are going to make the first deposit of Shs460 billion. The entire project will cost about Shs3.7 trillion,” he said.
The minister linked the aircraft deal to other aviation projects, including the expansion of Entebbe International Airport and the completion of Kabalega International Airport in Hoima.
“We are finalizing Kabalega Airport and expanding Entebbe Airport. We know that within the next ten years, Uganda will be where it should be in terms of aviation development,” he said.
He also said government plans to start domestic flights once the bigger international operations settle, with possible routes to Gulu, Kotido, Kidepo and Mbarara.
The two freighters are expected to give Uganda Airlines more cargo muscle, especially for exports, regional trade and time-sensitive goods.
Boeing’s Anbessie Yitbarek said the company will support Uganda Airlines with technical expertise, training and capacity building as the airline expands.
Uganda Airlines says the new aircraft will increase its ability to serve regional, continental and long-haul markets, while supporting tourism, trade, investment and cargo movement.
The ceremony was attended by Finance Minister Henry Musasizi, former Works and Transport Minister Gen. Katumba Wamala, former Finance Minister Matia Kasaija, Permanent Secretary in the Ministry of Works and Transport Waiswa Bageya, and Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi.
Also present were Uganda Airlines Board Chairperson Priscilla Mirembe Sseruka, board members, Boeing Commercial Sales and Marketing Africa representative Herb Wallen, and United States Embassy Chargé d’Affaires Mikael Cleverley.
The deal gives Uganda Airlines a bigger fleet ambition at a time when government is betting on aviation to drive tourism, trade and direct access to global markets.
