Uganda Air Cargo Plans Revival with $266 Million Recapitalization

Uganda Air Cargo (UCC), a subsidiary of the National Enterprise Corporation (NEC) under Uganda People’s Defence Force (UPDF) control, is set for a revival after receiving approval for a $266 million recapitalization. The Cabinet of President Yoweri Museveni sanctioned the funding earlier this year, marking a significant development for the dormant carrier.

Uganda Air Cargo Corporation (UACC) lost its air operator’s certificate (AOC) in 2014, leading to the grounding of its fleet, including two Lockheed Hercules and two Y12s. The loss of the AOC resulted in the cancellation of crucial contracts with entities like the United Nations Humanitarian Air Service. Despite various attempts at revival, the carrier has remained inactive.

The approved funding will be disbursed over four years in tranches of $103 million, $110 million, $23 million, and $3 million, starting in the coming financial year. General Manager General Nakibus Lakara informed a Parliamentary Committee on Defence and Internal Affairs that the funds would be utilized for avionics upgrades and the modernization of UACC’s L-100-30 Hercules (5X-UCF), currently undergoing maintenance in Jordan after a bird strike in Sudan.

The plan includes leasing an A320-200 for UPDF troop movements, securing an A330-200F (or equivalent payload) for cargo flights to the Middle East, Asia, and Europe, and procuring spares, components, and consumables. The recapitalization aims to bring the carrier back into operation and enhance its capabilities.

This development aligns with Uganda’s broader aviation aspirations, with state-owned Uganda Airlines also exploring opportunities to acquire freighters and tap into growing demand for agri-products export.