Rwanda is seeking $300 million to inject into the national carrier, Rwandair. The funds will be used to acquire three aircrafts on lease agreements.
The airline is preparing to expand operations to Europe, USA, and Asia.
Rwanda has requested the IMF for permission to raise its debt ceiling on new external debt, which will then allow Rwanda to expand its fleet.
Notably, the government had cut down spending on the airline from $56.2 million in 2015 to $53.8 million in 2016 and $47 million last year.
The airline is seeking financing “to operate deeper into Africa by adding new routes, and creating longer haul connections to Europe, America, and Asia.”
“Although the initial plan was to acquire two aircraft during the next fiscal year, an opportunity arose to acquire new aircraft following the folding of a European airline company, so RwandAir management quickly engaged the lease contracts,” Rwanda’s Finance and Economic Planning Minister Uzziel Ndagijimana was quoted by The East African.
“Going forward, leases for three additional aircraft are likely to be signed in 2018, to replace two aging aircraft. Hence, the government requests an increase in the indicative limit to $800 million to accommodate these leases,” the minister added.