Summary

  • Qatar Airways will finalize the 49% stake acquisition in RwandAir, boosting its presence in Central Africa.
  • The deal will allow RwandAir to expand its fleet, routes, and staff skills.
  • Qatar Airways also plans to make an equity investment in a Southern African airline.

Qatar Airways, which has been trying to acquire a 49% stake in RwandAir for the past five years, is reportedly set to finalize the deal within the next month. Qatar Airways has been collaborating with the Rwandan government and national carrier for many years and looks to continue boosting its presence in the region.

Five years of negotiations

RwandAir Chief Executive Officer Yvonne Makolo told the Financial Times that Qatar Airways is expected to finalize its purchase of a 49% stake in the Kigali-based carrier as early as next month. Qatar Airways has been eyeing a stake in RwandAir since 2019, but the deal was delayed by the COVID-19 pandemic and the 2022 FIFA World Cup in Qatar. Yvonne Makolo said,

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.

According to the Financial Times, Senior Executives close to the matter expect the agreement to be “executed” as early as July 2024. A stake in RwandAir would significantly boost Rwanda’s aviation sector and allow the national carrier to expand its operations. Similarly, Qatar Airways would also increase its footprint in East and Central Africa.

RwandAir Boeing 737-800 in Johannesburg

Photo: Thiago B Trevisan | Shutterstock

The two national carriers have already partnered on multiple levels. In 2021, they signed a codeshare agreement to offer customers access to over 65 destinations worldwide. The agreement came about two months before RwandAir launched flights from Kigali International Airport (KGL) to Doha Hamad International Airport (DOH). Last year, Qatar Airways partnered with RwandAir to launch a cargo hub in Kigali, its first outside of Qatar.

Increased presence in Central Africa

According to ch-aviation, RwandAir has a fleet of 14 aircraft (11 active;3 inactive). This comprises seven Boeing 737s, three Airbus A330s, two CRJ900ERs, and two DHC-8-Q400s. The Kigali-based carrier flies to 22 international destinations, mainly in Africa but also in Europe and the Middle East. Makolo added that the Qatar Airways deal would help the airline expand its fleet and routes and upskill its staff.

RwandAir Airbus A330-200 Delivery

Photo: Airbus

Qatar Airways will acquire a 49% stake in RwandAir for an undisclosed amount, helping the African airline “scale up much faster.” Meanwhile, the Doha-based carrier has a 60% stake in Bugesera International Airport, a new $1.3 billion project in Kigali. The airport, expected to be completed by 2027 or 2028, will be a key regional hub, given Rwanda’s strategic geographic location at the center of Africa.

Speaking at the Qatar Economic Forum on May 15, as shared by Bloomberg TV, Qatar Airways CEO Badr Al Meer said that Kigali was the best location for the airline and its partners to develop a regional hub. Data from Cirium, an aviation analytics company, shows that RwandAir operates six weekly flights between Doha and Kigali.

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Investing in a Southern African airline

At the Qatar Economic Forum, Badr Al Meer also disclosed that Qatar Airways would make an equity investment in a Southern African airline. This would help the carrier boost its presence in Southern Africa, which the CEO described as “the final piece of the puzzle.” The deal would complement the operations of RwandAir and Kigali as a regional hub.

A Qatar Airways Boeing 787-9 about to land.

Photo: InsectWorld | Shutterstock

Al Meer said the airline was at the final stage of the equity investment and would announce it in two to three weeks. However, it has been over a month, and Qatar Airways has yet to announce which Southern African airline it would be. The QR boss narrowed it down to two or three airlines. Industry experts suggested that it could be South African Airways, which sought an equity partner not too long ago, or Air Zimbabwe, which aims to find a path to recovery.

What do you think of this story? Which Southern African airline will Qatar invest in? Please share your thoughts in the comments!

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