On the government’s side, essential support measures also remain pending. These include providing land, constructing a hangar and related infrastructure, facilitating route rights, and enabling full use of the airline’s air services licence.
Pressure is building on the Ugandan government to accelerate the revival of the Uganda Air Cargo Corporation, after the Auditor General highlighted slow progress and unmet commitments in a key joint venture.
According to the 2024/2025 audit report, implementation of the partnership with Dubai-based Alpha MBM DWC-LLC remains uneven a year after the agreement was signed. Several critical obligations on both sides have yet to be fulfilled, raising concerns about the future of the national cargo carrier.
The joint venture had been positioned as a central pillar in efforts to recapitalise and modernise the airline. However, expected benefits—such as fleet expansion, access to new financing, and improved market positioning—have yet to materialise.
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The audit notes that the foreign partner has not fully delivered on key commitments, including mobilising additional funding, increasing aircraft capacity, and executing marketing and strategic partnerships to grow operations.
On the government’s side, essential support measures also remain pending. These include providing land, constructing a hangar and related infrastructure, facilitating route rights, and enabling full use of the airline’s air services licence.
The Auditor General warns that continued delays could derail the intended turnaround of the struggling carrier, heightening concern among stakeholders.
Financial indicators paint a challenging picture. Outstanding receivables rose to sh33.96 billion by June 2025, while trade payables increased to sh9.26 billion, pointing to ongoing cash flow pressures.
Revenue performance also fell short of expectations, with the airline generating sh12.42 billion against a projected sh18.63 billion during the review period.
The report further highlights underutilised assets, including grounded aircraft, which contributed to a decline in return on assets from negative 6 percent to negative 22 percent.
Despite the government’s continued emphasis on the joint venture as key to long-term recovery, critics say the findings expose gaps in coordination, accountability, and urgency.
Stakeholders are now calling for clear timelines, stricter enforcement of contractual obligations, and decisive action to ensure the partnership delivers results and restores confidence in the national cargo carrier.
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