Trade ties with Asia, Middle East attract airlines to Uganda

Aeroplanes at Entebbe International Airport. Middle-East airlines have moved to Uganda to facilitate trade between the two destinations. PHOTO BY STEPHEN WANDERA

What you need to know:

Growth in imports. Bank of Uganda figures indicate that in 2014, imports from the Middle East to Uganda rose to Shs1.73 trillion up from Shs1.69 trillion in 2013

Kampala.

There are now five middle-East based airlines with daily flights from Entebbe International Airport, widening travel options for tourists.

This month, Etihad Airways launched four times a week flights connecting people to its hub in Abu Dhabi, the capital of the United Arab Emirates (UAE). Other operators from the Middle East are Fly Emirates, Fly Dubai, Turkish Airlines and Qatar Airways. These airlines only started flying to Uganda after June 2010.

Before that, the market was mostly serviced by European airlines such as SN Brussels, KLM and British Airways. Their tide has since changed, especially for traders who are looking to finalise deals in the Middle East, China, India, South Korea and Japan.

Trade is at the major reason why the Middle-East airlines are moving to Uganda. Statistics from Bank of Uganda (BoU) indicate that in 2014, imports from the Middle East to Uganda rose to $577m (Sh1.73 trillion) up from US$566m (Shs1.69 trillion) in 2013. The UAE alone accounts for at least 70 per cent of these imports followed by Saudi Arabia and Bahrain.

“These flights will serve and enhance links to the nearby Ugandan capital of Kampala, one of the fastest growing cities on the African continent, and the centre of trade and commerce in the country,” says Mr Daniel Barranger, Vice President for Global Sales at Etihad Airways.
Connections are also important to businessmen who have a shorter turnaround time when they fly through the Middle East.

“The new service also provides an important link between emerging markets, providing travellers from Uganda with direct access to our home in Abu Dhabi, with convenient onward connections to key destinations across the Gulf region, Europe, Indian Sub continent, North Asia, Southeast Asia and Australia,” Mr Barranger further pointed out.

Uganda imports most of its goods from Asia and daily, businessmen move to India, China and Japan, among others, to purchase commodities.
BoU import statistics indicate that from Asia alone, Uganda imported goods worth $2.6b in 2014 down from $2.7b in 2013. India and China are the most dominant countries in terms of imports.

The carriers from the UAE, specifically Emirates and Fly Dubai, also have a selling point which is Dubai as a holiday destination.
“Dubai is a world-class leisure and business destination, offering accommodation for all budgets, as well as an extensive range of activities for all visitors, whether is for shopping, the beaches, culture, events or entertainment,” reads an email response from Emirates Airlines to the Daily Monitor.

Passenger figures
Tourists numbers. Civil Aviation Authority (CAA) says at least 60 per cent of all passengers that fly into Entebbe International Airport are tourists. CAA is yet to release the latest passenger traffic numbers for 2014. However, there was a projection it could close in on at least 1.5 million people.