Uganda seeks $388 million funding to revive its national air carrier Uganda Airlines

In a bid to revive and launch the national carrier, Uganda Airlines, Uganda seeks to raise $388 million.

Uganda Airlines will be launched by September following the Cabinet approval of a blueprint last year that stated how the airline could start flights from Entebbe across East Africa before going international, the East African reports.

The government, which is the major shareholder, will raise $70 million in a period of 3 years, while the rest of the remaining $318 million will be raised through other financial tools.

Banks, private sectors, international aircraft finance lenders, lessors, government borrowing, export credit agencies, will help raise the remaining money. The minister of Works and Transport, Ntege Azuba is in charge of the project for which a task force was appointed in 2016.

Uganda Airlines had been grounded for 15 years and it could take a while before the company takes to the skies again due to the capital requirements. It aims at improving air transport connectivity to and from Uganda hence enhancing the country’s competitiveness. Read more on this here.