Uganda Airlines Plans $95 Million Procurement Boost, Targets 700,000 Passengers

Summary:

• Uganda Airlines plans to spend $95 million on procurement in 2024/25, aiming to increase support for local suppliers. They anticipate reaching 700,000 passengers by 2024, emphasizing growth and local supplier development amid quality challenges.

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KAMPALA, (Examiner) – Uganda Airlines plans to allocate $95 million for procurement in the upcoming 2024/25 fiscal year, with a focus on bolstering support for local suppliers to increase their share of this expenditure. The budget will be divided across supplies, services, and infrastructure projects.

The national carrier anticipates reaching a milestone of 700,000 passengers by the end of 2024, driven by expansions in capacity and flight frequencies on key routes.

These announcements were made at Kampala’s inaugural supplier forum, where local vendors were briefed on current and emerging opportunities with the airline. CEO Jenifer Bamuturaki highlighted that the airline’s local supplier base has grown to 200, with USh120 billion ($32.3 million) disbursed to local contracts over the past five years.

Despite this progress, Bamuturaki expressed concerns about challenges in maintaining consistent quality, which often necessitates sourcing products internationally instead of domestically.

She emphasized the need for local suppliers to enhance their global competitiveness to align with Uganda Airlines’ growth, particularly in supporting cargo operations and national exports.

As Uganda Airlines expands its network to 13 destinations and increases flight frequencies, including adding a leased 156-seat A320 to its fleet, the demand for locally-sourced onboard consumables has risen significantly.

Looking ahead, the airline forecasts carrying 480,000 passengers by the end of fiscal 2023/24, with expectations to exceed 700,000 passengers in 2024. This growth is underpinned by increased capacity on regional routes and enhanced flight frequencies.

Bamuturaki reaffirmed the airline’s commitment to collaborating with local suppliers to broaden their product offerings competitively. She encouraged them to focus on improving packaging, consistency, and quality standards to meet both domestic and global aviation industry requirements.

Moreover, she highlighted new opportunities for suppliers to engage in sustainable aviation fuel initiatives, starting with cultivating feedstock for energy production, as the airline moves towards launching dedicated freighter services.

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