The revival of Uganda Airlines was intended to facilitate the growth of Uganda’s tourism sector by creating a direct connection between Uganda and its key tourist source markets, create a faster route for horticulture exports and integrate Uganda better into global value chains, Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury,(PSST) has explained .
Ggoobi further stated that the national carrier would also add impetus to the growth of Entebbe International Airport as an alternative hub in the region.
He said that Uganda’s new route from Entebbe to London Gatwick, which starts on May 18, 2025, will further improved air mobility and supported traffic growth at Entebbe International Airport, which last year reached the 2.2 million passenger mark.
“ With 14 destinations within Africa and one each to Europe, the Middle East, and India, Uganda has never been better integrated into the regional and global air transport system,” Ggoobi stated amid applause ,adding that Uganda Airlines Uganda Airlines, was a going concern, which is still under the investment phase .
Ggoobi was delivering a key note address at the well attended Uganda – Uk Business forum organised by Uganda Airlines management and held at Sheraton hotel Kampala Uganda.
The PSST told the audience which included the British High Commissioner to Uganda, Ms. Lisa Chesney, that although Uganda Airlines is government-owned, the national carrier was conceived to operate on an independent commercial model to offer the public a competitive air transport product.
“ I am happy to learn that the airline is making good progress towards closing the revenue gap, and we shall continue to give it all the support it needs in areas like fleet development. Very soon, we hope to add more passenger aircraft as well as a dedicated freighter for cargo, : he stated . adding that with the new London route, the company would increase its cargo operations – as the main driver, pushing the Ailrines’s revenue contributions from the current 8% to 25% by 2030 .
Ggoobi a former academic at Makererere Univerity’s Business School Nakawa, called for further improvements to fiscal management, especially prudent debt management, improved investment efficiency, stronger governance, and a commitment to tackle negative forces such as corruption in order to create a transparent, business-friendly environment.
“Reaching the goal of US500 billion economy over the next 15 years will also require us to double the size of the economy every five years. We will also need to sustain annual GDP growth rates above 10 percent and increase per capita income from the current USD 1,039 to USD 7,000,” he added.
Speaking figures
Ggobi said government was working to increase merchandise exports from 13-50 percent of GDP, while exports of medium and high-tech manufactured products will have to increase from 21-50 percent by 2040.
“To ensure that we don’t lean heavily on external borrowing, we need to ramp up domestic savings from about 21 percent today to about 40 percent of GDP. The tax-to-GDP ratio will have to rise from the current 13 percent to at least 25 percent while annual FDI flows will have to rise to USD50 billion during the ramp-up years.”
Investors’ perspective
He was happy to note that Uganda maintains a free foreign exchange rate, inflation is under control ,and growth is already looking up.
GDP growth was 6.7% at the end of the FY 2023/24. The economy has expanded from Shs.183 trillion (USD 48.8 billion) registered in FY 2022/23 to about Shs.202.13 trillion (USD 53.2 billion) in FY 2023/24.
“A national carrier opens up multiple opportunities. I would, therefore, like to use this opportunity to call upon the local and international business community here today to explore ways of leveraging the opportunities being opened up through Uganda Airlines expansion to support our vision for a Ten-fold increase in the Gross Domestic Product, he stressed.
Uganda Airlines CEO, Ms. Jenifer Bamuturaki , said that the London route was of great strategic importance because – UK remains a key source market for Uganda-bound and Africa-bound tourism, a vital destination for Uganda’s perishable exports, and a trusted origin of high-quality brands widely embraced by Ugandan consumers.
“Our service, operating four times weekly, will provide 1,032 seats and 72 tons of cargo capacity in each direction on the Entebbe–London route. This will be the only direct air service between Uganda and the United Kingdom, taking just nine hours with unmatched comfort aboard our Airbus A330-800neo aircraft,” she said.
Uganda Airlines wide-body aircraft offers a three-cabin configuration: 20 seats in Business Class 28 in Premium Economy 210 in Economy.
According to Bamuturaki , beyond Uganda, the national carrier’s growing African network covers East, Central, West, and Southern Africa- serving 14 African cities.
The airlines also operates scheduled flights to India three times a week, and to Dubai in the Middle East.
She told the audience that the London route will reduces travel time and cost and introduce greater choice and convenience to the market.
Caring for the Enviornment
Bamuturaki said that Uganda Airlines equipment is environmentally compliant because of its new generation configuration, which supports less fuel burn and the company will blend its fuel with 2% Sustainable Aviation Fuel (SAF) in compliance with the IATA 2025 Net zero targets.
The British High Commissioner , Ms. Lisa Chensey, said that at present the UK-Uganda trade was worth almost £1m (over 4 trillion UGX) and was optimistic that with direct flight cargo transport will be streamlined between the two friendly countries .
“With direct flights we can connect those on the bustling streets of London, to the impenetrable forests of Bwindi. We can foster stronger ties between our people, and our cultures,” Chensey said adding that Country Director for the UK’s Department for Business and Trade, Louis, will be taking part in the discussion on a renewed strategy for increasing tourism between the two countries.
In her speech Chensey talked the “elephant in the room” – the tough visa requirements for Ugandans intending to travel to the UK noting it was due to those that abuse the processes and overstay.
“The reality is those who overstay and don’t come back make it harder for everyone. However, with this direct flight and an increase in the volumes of responsible businesses and tourists going and coming back will help,” she explained .
