Rwanda’s president Paul Kagame has suggested that the ongoing discussions around Qatar Airways acquiring a 49% stake in the country’s national airline, RwandAir, and a 60% stake in the new Bugesera International Airport outside Kigali are nearing completion after protracted negotiations.

“The Qatar-Rwanda partnership over the airline and the airport has made very good progress,” he said. While declining to be “precise with dates and amounts,” the Rwandan president said that “overall I can say there has been very good progress – it won’t be a long time until we see these things playing out […] certain things are being concluded.”

Qatar Airways and RwandAir have been in negotiations for around five years, with talks being delayed several times as a result of the Covid-19 pandemic and then the 2022 World Cup in Qatar. However, Qatar Airways has long been interested in acquiring a stake in RwandAir in order to advance its broader strategy of expanding its operations in East and Central Africa. The two airlines have already signed a codeshare agreement and launched direct flights between Kigali and Doha to strengthen ties.

The deal to acquire part of Bugesera International Airport, a $1.3bn project which is expected to be completed by 2028, would also see Qatar Airways establish its first cargo hub outside of Qatar.

However, despite President Kagame’s recent comments, it is not yet clear when or even if the deal will finally be concluded. Sindy Foster, an African aviation analyst and principal managing partner at London-based aviation consultancy firm Avaero Capital Partners, tells African Business that “many reports speak of an imminent announcement – but I’m not so sure […] we need to continue to wait and see.”

Foster notes, however, that “it’s clear that the interest in Rwanda is part of Qatar’s wider growth strategy. Investment in a Central Africa hub takes advantage of the geographical location to facilitate connectivity across the continent, thereby enhancing and feeding into the Qatar Airways route network.”

“Investment in the airport and airline establishes a strong foothold on the continent and will no doubt strengthen bilateral relations for the benefit of both countries,” she adds.

Qatar Airways makes African inroads

Qatar Airways has made further inroads in the African aviation market in recent months. Last August, for example, the airline acquired a 25% stake in the South African airline Airlink. Qatar Airways’ CEO Badr Mohammed Al-Meer said at the time that the investment “demonstrates how integral we see Africa being to our business’ future.”

Foster notes that Qatar Airways – and other global airlines – are seeking “access to Africa’s rapidly growing market and access to underserved routes in order to enhance their footprint in a high-potential market.”

“Increased connectivity [across Africa] strengthens their hub and spoke model and allows them to diversify revenue streams, including with respect to attractive cargo opportunities, which they have already targeted with the cargo hub partnership in Kigali with RwandAir.”

“Gaining a presence in Africa is the objective of many foreign airlines who are vying for a competitive edge.”