Uganda’s national carrier Uganda Airlines has agreed to purchase 10 new aircraft from U.S. planemaker Boeing in a deal aimed at expanding its fleet and boosting the country’s ambitions to become a regional aviation hub, the government said Wednesday.
President Yoweri Museveni witnessed the signing of the aircraft acquisition agreement between the state-owned airline and Boeing, according to Uganda’s State House.
“The fleet expansion, which includes passenger and cargo aircraft, will strengthen trade, tourism, and investment, and position Uganda as a key regional aviation hub,” State House said in a post on social media platform X.
The agreement marks one of the most significant fleet expansion moves since the relaunch of Uganda Airlines in 2019, as the carrier seeks to increase its regional and international reach while improving cargo capacity for exports.
Ugandan broadcaster UBC reported that the deal is valued at 3.7 trillion Ugandan shillings, equivalent to about US$984.64 million.
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The airline did not immediately disclose the specific aircraft models included in the purchase or the delivery timeline.
Uganda Airlines currently operates a relatively small fleet focused on regional African routes and select international destinations. The addition of 10 Boeing aircraft is expected to significantly increase its capacity, though analysts say operational success will depend on route planning, profitability and maintenance costs.
The government has repeatedly framed the national carrier as a strategic asset designed to reduce reliance on foreign airlines, support tourism growth, and improve Uganda’s export logistics, particularly for high-value agricultural products.
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Officials say the inclusion of cargo aircraft in the deal is intended to strengthen Uganda’s freight capabilities, a sector seen as critical for expanding exports of fresh produce, fish, flowers and other perishable goods to European and Middle Eastern markets.
Aviation analysts note that while fleet expansion can support growth, African state-owned airlines have often struggled with high operating costs, competition from established regional carriers, and sensitivity to fuel prices and foreign exchange pressures.
Uganda Airlines has in recent years been attempting to rebuild its brand after the collapse of the original national carrier in 2001, which was shut down amid financial difficulties. The revived airline has gradually expanded its network, but remains dependent on government support.
The Boeing agreement also highlights deepening aviation ties between Uganda and U.S. aerospace manufacturers, as African governments increasingly turn to major global suppliers to modernise ageing fleets and expand connectivity.
Boeing, one of the world’s largest aircraft manufacturers, has been competing with rival Airbus for contracts across Africa, where demand for both passenger and cargo aircraft is expected to grow over the coming decades due to population growth, urbanisation and rising intra-African trade under the African Continental Free Trade Area (AfCFTA).
Uganda’s government has argued that improved air connectivity will help position the country as a logistics and investment hub in East Africa, particularly as infrastructure investments continue in roads, rail and energy.
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However, economists have often cautioned that the success of such national carrier expansion strategies depends heavily on strong governance, commercial discipline and sustained demand growth, warning that state ownership can expose airlines to political pressure and fiscal risks.
The new aircraft acquisition comes at a time when many African airlines are reassessing fleet strategies following disruptions caused by global supply chain constraints and fluctuating aircraft delivery schedules in the post-pandemic aviation industry.
While details of financing arrangements were not immediately made public, large aircraft purchases of this nature are typically structured through a combination of export credit arrangements, leasing agreements and government-backed financing.
Uganda Airlines has said it expects the expanded fleet to support both passenger traffic growth and increased cargo volumes, particularly along regional trade corridors within East and Central Africa.
President Museveni has in the past described the airline as a symbol of national pride and economic ambition, urging its management to ensure efficiency and competitiveness in an increasingly crowded aviation market.
With the new deal, Uganda joins a number of African countries investing in fleet modernisation as governments seek to capture a larger share of intra-African air traffic and improve global connectivity.
The airline said further details on aircraft types, delivery schedules and route expansion plans would be communicated in due course.
