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Uganda Airlines to give local suppliers preference in $95 million procurement spend

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Uganda Airlines is looking into measures to help local suppliers get a larger share of the $95 million it wants to spend on procurement during the 2024–2025 fiscal year. The funds will be divided between works, services, and supplies.

By the end of 2024, the national carrier anticipates reaching the 700,000 passenger mark thanks to increases in capacity and frequency on important routes. At the airline’s inaugural supplier event this week in Kampala, where local suppliers were briefed on both current and upcoming prospects at the flag carrier, the numbers were revealed.

In the five years that the airline has been in business, local contracts have paid out Ush120 billion ($32.3 million), according to Chief Executive Officer Jenifer Bamuturaki. The database of local suppliers has expanded to 200. She also bemoaned, meanwhile, the difficulties the airline has had maintaining consistency and quality, which has frequently compelled it to import goods that might be made domestically.

According to Ms Bamuturaki, local suppliers must consider being globally competitive for their expansion to assist the carrier’s cargo operations and domestic export market.

The demand for onboard consumables is rising as the airline expands its network and the number of passengers rises, according to her, with 90% of them coming from local vendors.

Uganda Airlines anticipates reporting 480,000 passengers flown during fiscal year 2023–2024, based on preliminary figures. Nonetheless, it is anticipated that there would be roughly 700,000 passengers in 2024.

The network, which currently has 13 destinations, is growing due to up-gauging aircraft on regional routes, increasing frequency on important routes, and network development. The airline expanded its fleet in May by adding a leased A320 with 156 seats.

In addition to making space for additional frequencies, the aircraft has allowed the carrier to meet the increasing demand on routes like Nairobi, Kinshasa, and Johannesburg.

Nairobi, which is now served sixteen times a week, will expand to two flights a week starting in July. That is three flights each day, six days a week, excluding Saturday. There will be six instead of five days per week in Kinshasa, and four more days of double daily flights in Juba, for a total of nine flights per week.

After severing ties with Zanzibar, Dar es Salaam will now run five flights per week instead of just one. Kilimanjaro and Zanzibar will now be combined, with three weekly flights between the two locations.

“We remain committed to working with you to expand the range of products that you can supply on competitive terms. But we also want you to grow with us by transforming into globally competitive companies that can supply quality products not just Uganda Airlines but the global legacy airlines.”

“But you will need to concentrate effort on improving quality across packaging, consistency in taste and supply,” Ms Bamuturaki said.

She further stated that because its suppliers will help fill the cargo capacity, the company—which plans to start a specialized freighter service—sees their success as essential to its sustainable expansion.

She also directed them toward new growth opportunities, such as planting feedstock for energy firms as the first step in the sustainable aviation fuel value chain.

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Ethiopian PM reveals country could get $10.5 billion if talks with World Bank, IMF succeed

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If lengthy negotiations with the World Bank and the International Monetary Fund (IMF) are successful, Ethiopia would get $10.5 billion in support over the next few years, Prime Minister Abiy Ahmed announced on Friday.

The most populous nation in East Africa had severe inflation and ongoing shortages of foreign currency in December, making it the third country on the continent to experience a debt default in as many years.

If lengthy negotiations with the World Bank and the International Monetary Fund are successful, Ethiopia will get $10.5 billion in support over the next few years, Prime Minister Abiy Ahmed announced on Friday.

The most populous nation in East Africa had severe inflation and ongoing shortages of foreign currency in December, making it the third country on the continent to experience a debt default in as many years.

“We have been having a wide range of talks, negotiations and discussions with the IMF and World Bank. Because we were a bit tough with them and they were also tough with us, the (talks) took five years,” Abiy told lawmakers.

“Now with the support of some friendly countries, it seems like many of our ideas have been accepted. If this succeeds and we can agree on the reforms, Ethiopia will get $10.5 billion in the coming years,” he said.

Without going into further detail, Abiy continued, “There were some reforms the government was unwilling to undertake right away.”

“There are some areas we think should be reformed now, and there are things we think should stay as it is. If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden,” the prime minister said.

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Nigeria beats competitors to host Africa Energy Bank

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Nigeria, the continent’s largest oil producer, defeated three rival nations to win the rights to host the newly established Africa Energy Bank (AEB), the country’s oil minister announced on Thursday.

Nigeria will be at the vanguard of Africa’s energy future thanks to a decision made at an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO), according to a statement from Minister of State for Petroleum Resources, Heineken Lokpobiri.

After ratifying the bank’s charter and President Bola Tinubu approved an investment of $100 million, surpassing the needed $83.33 million for member nations, Nigeria’s quest to host the AEB was reinforced in late May.

Funded by Afrexim Bank and APPO, the fossil fuel-focused bank seeks to assist the continent’s energy transformation objectives and finance energy projects across the continent.

“This decision reflects our collective ambition to create African solutions to African energy challenges,” Lokpobiri said.

“The African Energy Bank will be instrumental in providing the financial backbone for energy projects that will drive growth and development across the continent,” he added.

When the AEB launches later this year, its first spending authority is $5 billion. According to analysts, Nigeria, one of Africa’s leading energy producers and an original member of APPO, has expressed a great deal of interest in the bank as it launches a fresh initiative to attract investment into its flagging oil and gas sector.

“Hosting the bank would be a vote of confidence in Nigeria at a time its energy industry badly needs a boost,” Clementine Wallop, director for sub-Saharan Africa at political risk consultancy Horizon Engage, said before the announcement.

After Ivory Coast and South Africa failed to meet the requirements, Algeria, Benin, and Ghana are the three other countries that bid to host the AEB.

 

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