Qatar Airways is expected to acquire a 49 percent stake in Rwanda’s flag carrier RwandAir as early as July as part of the Gulf airline’s strategy to expand in Africa, which is in media, and according to some hint from the carrier's top leadership.
When Qatar Airways, in Dec-2019, signed an agreement with Rwanda’s government to acquire a 60% stake in the new Bugesera Airport, presently under construction, it was initially considered a strange decision for the airline. But, the decision on Rwandair makes things clear that the Doha-based airline attempts to capitalise on one of the world’s fastest-growing markets.
Rwanda and Qatar Airways signed agreements on an investment partnership for the airport project, witnessed by Sheikh Tamim bin Hamad Al-Thani and Paul Kagame in Kigali, 9 December, 2019. © Lv Tianran/Xinhua/Newscom/MaxPPP
Previously, Portugal’s Mota-Engil held an 85% stake in the facility. The Rwandan Government then bought this from the Portuguese construction company, giving it 100% ownership. It then signed the agreement with Qatar during a state visit by the Arabian Gulf state’s Emir Sheikh Tamim bin Hamad Al-Thani.
Qatar Airways had agreed to take a 60% stake in the project, which as a whole was valued at around $1.3 billion. The new airport is being redesigned initially to accommodate seven million passengers per annum, with a second phase for 14 million passengers a year expected to start by 2032.
Now, Qatar Airways’ stake purchase in the national carrier will boost Rwanda’s aviation sector and allow RwandAir to expand its operations and fleet, Financial Times reported, quoting RwandAir CEO Yvonne Makolo.
Due to a code-share agreement, RwandAir has access to Qatar Airways’ network. It owns three widebody aircraft for its Brussels, London and Paris flights.
The International Air Transport Association (Iata) said Africa accounts for just 2 percent of global air traffic despite being home to about 18 percent of the world’s population.
But the intentions are straight forward, the carrier positions itself not only to take a 49% stake in RwandAir, but also potentially in a so far unnamed Southern African airline.
The objective of this effort is basically to make sure that Rwanda becomes an African hub where everyone will be transiting either for tourism, but also for business and different industries, and Central/East Africa could do with a genuine continental level hub.
Well ! there were a lots of speculation, as Qatar Airways CEO Badr Mohammed Al Meer said recently that the company was planning to announce an investment in an airline in southern Africa in May-2024 or Jun-2024.
Mr Al Meer added that the investment would complement the airline’s proposed acquisition of a 49% stake in RwandAir and its 60% stake in Kigali Bugesera International Airport.
They are working on this, Mr Al Meer, who became the airline’s CEO in Nov-2023, sees the southern part of Africa as a gap in Qatar Airways’ network coverage that it should fill.
Although Qatar Airways already flies to around 30 cities across Africa, the southern part of the continent is regarded as being the “last piece of the equation”, and one that would help it to gain greater scale where there has been rising travel demand in recent years.
On its fleet consolidation, Qatar Airways has also issued a tender to Airbus and Boeing a few months ago to
"reduce the type of aircraft we have in our fleet, to have more consistency in what we're giving our passengers and to have a better streamline in our operations", Mr Al Meer said.
For the past five years, Qatar and Rwanda have been working on the deal, which has been delayed, partly, by the Covid-19 pandemic and by Qatar hosting the Fifa World Cup.
Yvonne Makolo, the Rwandair Chief Executive says this strategic alliance is driven by a confluence of factors: Qatar Airways' ambition to capitalize on Africa's burgeoning aviation market and RwandAir's strategic positioning to become a major player within it.
“It’s been going on for a while, we have been discussing it for almost five years. So, now, we’re really at the tail-end of it,” Makolo said.
