Uganda’s national carrier Uganda Airlines has hooked its hope in China, as the Government of Uganda seeks to revive the company.
Led by the Head of State President Yoweri Museveni, the airline seeks to secure multi-million loans from the power house nation to revive its operations both within and without the state. The airline hopes to begin operations by the end of year.
The former flag carrier has not been operational battling a buffet of challenges including mismanagement and political interference. President Museveni hopes their trading partner China will loan the Government some financial inclusion to kick start its operations earlier. The airlines is looking at adding tally to its fleet to increase its flights frequency.
Two-long range aircraft from Airbus and an additional four short-range aircraft from Canada (Bombardier) will kick start the company’s operations as they look to add more in the process. Lack of enough capital has robbed the airline opportunities to invest and reap in the aviation sector, lagging behind its fellow competitors.
The Government had allocated some funds in their 2018/19 financial year for the revival of the airline. The funds would be used for regional air services before they could extend their reach.
Having had a rough path with China, the latter has been cautious of its lending spree since 2017. Last year though, Uganda was confident it would pay off China its loans. China has been played a huge role in Uganda’s economy with its financial injection paying off in the country’s economy. However, the two have already signed off a $15 million loan to better the border inspection systems.
Source: exchange.co.tz
