Uganda Airlines has signed a major commitment with American aircraft manufacturer Boeing to acquire 10 new aircraft under the national carrier’s long-term expansion plan.
President Yoweri Museveni witnessed the signing ceremony at State House Entebbe on Wednesday.
Uganda Airlines acting chief executive officer Girma Wake signed the agreement on behalf of the airline. Boeing executive vice-president and head of sales for Africa, Anbessie Yitbarek, signed on behalf of the aircraft manufacturer.
Under the agreement, Uganda Airlines will acquire eight Boeing passenger aircraft. Each aircraft will have a seating capacity of 294 passengers.
The airline will also receive two cargo aircraft. These include a Boeing 767 wide-body converted freighter and a Boeing 737 Boeing Converted Freighter.
The government says the acquisition will expand Uganda Airlines’ fleet, increase direct international connections, support tourism and trade, and strengthen Uganda’s position as a regional aviation hub.
Government Defends Shs3.7 Trillion Investment
Speaking at the ceremony, Works and Transport Minister Fred Byamukama described the project as a strategic investment in Uganda’s global connectivity.
“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,” he said.
Mr Byamukama said the first phase will involve delivery of four large passenger aircraft. The remaining aircraft will arrive later.
“Previously, investors had to transit through other countries and make several stopovers. With the addition of these aircraft, we shall have more direct routes and connections,” the minister said.
He said Uganda will make the first deposit of Shs460b on Thursday.
“Tomorrow [today, Thursday], we are going to make the first deposit of sh460b. The entire project will cost about sh3.7 trillion. This money comes from taxpayers. We are finalising Kabalega Airport and expanding Entebbe Airport. We know that within the next 10 years, Uganda will be where it should be in terms of aviation development,” Mr Byamukama said.
He added that the investment is expected to boost Uganda’s tourism sector.
“Once we stabilise the expanded international operations, we shall embark on domestic flights so that Ugandans can easily fly to destinations such as Gulu, Kotido, Kidepo and Mbarara,” he said.
Mr Byamukama credited President Museveni’s “wise leadership” and strategic vision for driving Uganda’s aviation development agenda.
Boeing Pledges Technical Support
On behalf of Boeing, Mr Yitbarek pledged continued support for Uganda Airlines beyond the supply of aircraft.
He said Boeing will provide technical expertise, training and capacity-building programmes to support the national carrier.
Several senior government officials attended the ceremony.
They included former Works and Transport Minister Gen Katumba Wamala, former Finance Minister Matia Kasaija, Works and Transport Permanent Secretary Waiswa Bageya, and Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi.
Uganda Airlines board chairperson Priscilla Mirembe Sseruka and board members also attended.
Other guests included Boeing commercial sales and marketing Africa representative Herb Wallen and the chargé d’affaires of the United States Embassy in Uganda, Mikael Cleverley.
Katumba Hands Over Works Ministry
Earlier in the day, Gen Katumba Wamala handed over the Works and Transport Ministry to the new leadership.
Speaking during the handover ceremony, Gen Katumba said it had been a privilege to serve under President Museveni’s leadership.
He expressed confidence that the ministry would continue to make progress under its new leadership.
Gen Katumba congratulated Mr Byamukama, Works State Minister Siraji Musa Ali and State Minister for Transport Julius Maganda Wandera on their appointments.
He said the ministry has a strong technical team and several opportunities ahead.
Roads and Bridges Completed
Gen Katumba said the ministry registered several achievements during his tenure.
These included the completion of 55 road upgrade projects covering 2,126.51 kilometres.
He said the ministry also rehabilitated 12 road projects covering 643.5 kilometres.
The government completed 33 bridges during the same period.
Gen Katumba said 23 road upgrade projects covering 1,274.8 kilometres remain under implementation.
As of April, 12 road rehabilitation projects covering 943.9 kilometres were ongoing.
Another 30 bridges were under construction.
The ministry also has 16 in-house road construction projects covering 1,041.9 kilometres.
Gen Katumba praised the former Uganda National Roads Authority team for implementing oil roads that support Uganda’s petroleum sector.
Railway and Water Transport Works Continue
In the railway sector, Gen Katumba said the ministry, through Uganda Railways Corporation, rehabilitated sections of the metre-gauge railway.
He said the works support cargo movement between Uganda and Mombasa Port.
The Tororo-Gulu railway rehabilitation project has reached 71 percent completion.
Passenger train services have also been restored in Mukono.
The ministry expects services to resume in Jinja and Kyengera in Wakiso District.
Gen Katumba said the Gulu Logistics Hub had been completed.
He added that the procurement of locomotives, water vessels and full railway rehabilitation works is being supported by the African Development Bank.
On the Standard Gauge Railway, Gen Katumba said a contract had been signed with Yapi Merkezi. He said implementation had started under a limited notice to proceed.
Entebbe Airport Capacity Expanded
In aviation, Gen Katumba said expansion and modernisation works at Entebbe International Airport had improved passenger-handling capacity.
He said the works had also enhanced safety systems and strengthened Uganda’s position as a gateway for tourism, trade and investment.
The ministry also expanded water transport services through 16 ferries.
Gen Katumba said the ferries have improved marine safety for island and lakeside communities.
Construction of Port Bukasa has reached 95 percent completion in its first phase.
However, the project has faced challenges linked to project-affected persons.
Gen Katumba said rehabilitation of Port Bell and Jinja Pier is planned under African Development Bank funding.
Financing Gaps Remain a Challenge
Despite the progress, Gen Katumba cited several challenges facing the sector.
These include financing gaps for major infrastructure projects, delays in land acquisition and compensation, and road maintenance sustainability.
He also listed the competitiveness of Uganda Airlines among the sector’s key challenges.
In his remarks, Mr Byamukama pledged to build on the ministry’s achievements.
He said he will prioritise completion of delayed projects.
He also urged ministry staff to improve planning and ensure infrastructure projects come from ministry priorities rather than external lobbying.
