QATAR Airways is poised to finalise its acquisition of a significant stake in RwandAir, Rwanda’s national carrier, as early as next month, according to RwandAir’s CEO Yvonne Makolo.
In an interview with the Financial Times (FT), Makolo revealed that the discussions, which have been ongoing for nearly five years, are now approaching their conclusion. ‘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,’ she stated.
The long-awaited deal involves Qatar Airways purchasing a 49 percent stake in RwandAir, though the financial terms of the agreement remain undisclosed. This strategic investment is expected to bolster RwandAir’s operations and expand Qatar Airways’ footprint in Africa.
Background of the negotiations
The negotiations between Qatar and Rwanda began five years ago, with both parties working towards a partnership that would enhance their respective aviation sectors. While Qatar Airways has declined to comment on the deal, and RwandAir did not immediately respond to requests for comments, the investment is seen as a crucial step for both airlines.
Earlier this year, Qatar Airways CEO Badr Mohammed Al Meer hinted at an imminent investment in an airline in southern Africa, further indicating the Gulf nation’s strategic interest in the African aviation market.
Qatar Airways’ investments in Rwanda
Qatar Airways has been strengthening its ties with Rwanda over the past few years. In 2019, the airline acquired a 60 percent stake in a new $1.3bn international airport under construction in Rwanda. Additionally, Qatar Airways has established code share agreements with several African airlines, including RwandAir, enhancing connectivity and collaboration within the continent.
Implications for RwandAir and Qatar Airways
The acquisition of a 49 percent stake in RwandAir by Qatar Airways is expected to significantly impact both carriers. For RwandAir, the investment will likely provide much-needed capital and resources to expand its operations and improve service quality. For Qatar Airways, the deal represents a strategic move to strengthen its presence in Africa, a rapidly growing aviation market.
This partnership is anticipated to create new opportunities for both airlines, fostering increased connectivity and cooperation in the aviation industry across Africa. The finalisation of this deal will mark a significant milestone in the collaboration between Qatar Airways and RwandAir, paving the way for future growth and development.
As the aviation industry continues to evolve, the partnership between Qatar Airways and RwandAir stands out as a significant development. The expected finalisation of Qatar Airways’ acquisition of a 49 percent stake in RwandAir next month will not only enhance the operational capabilities of both airlines but also contribute to the broader growth of the aviation sector in Africa.
