Equity Bank has reaffirmed its position at the centre of Kenya’s financial system after emerging as the top institution at this year’s Think Business Banking Awards, a recognition that underscores its expanding influence across East Africa’s banking landscape.

The Nairobi-based lender secured the Overall Best Bank title at the annual ceremony, which convened industry executives, regulators and analysts to assess performance across the sector. The 2026 edition placed emphasis on building resilient, well-capitalised banks capable of sustaining growth while maintaining fair pricing for customers.

Equity’s dominance was evident not just in the headline award, but in the breadth of categories it captured. The bank took home 10 wins and finished runner-up in two additional segments, reflecting strength across retail, corporate and development-focused banking lines.

At the leadership level, group managing director and chief executive James Mwangi was named CEO of the Year, with judges pointing to his role in scaling financial inclusion initiatives, deepening digital transformation and steering the group’s regional expansion.

Speaking after the awards, Dr Mwangi framed the recognition as validation of a long-term strategy anchored on resilience and access. He noted that the lender will continue prioritising efficient capital deployment, broader credit access and technology-driven service delivery as it navigates an increasingly competitive financial environment.

Equity’s strong showing in agriculture and asset financing categories highlights its growing footprint in productive sectors of the economy. The bank has, in recent years, positioned itself as a key financier for farmers, agribusiness value chains and small enterprises—segments often underserved by traditional lenders but critical to economic growth.

Its performance in microfinance further reinforced this positioning, with the bank maintaining a focus on micro, small and medium-sized enterprises as well as low-income households. This strategy has been central to its business model, blending commercial returns with developmental impact.

Beyond core banking, Equity also led in corporate social responsibility, driven largely by programmes implemented through the Equity Group Foundation. These initiatives, spanning education, health and entrepreneurship, have become a defining feature of the group’s brand across the region.

The bank’s second-place rankings in trade finance and Tier One banking categories suggest that while it remains dominant in inclusion-led segments, it is also increasingly competitive in high-value corporate and cross-border financial services.

According to chief judge Priscillah Mogaka, the selection process involved a detailed review of 160 submissions, assessed against a comprehensive framework that balanced financial performance with governance standards, innovation and customer outcomes.

She noted that this year’s results reflect a sector undergoing rapid transformation, with banks investing heavily in digital platforms, strengthening risk management frameworks and reorienting services around customer needs.

Industry analysts observed that Equity’s recognition comes at a time when regional banks are under pressure to balance expansion with stability amid shifting economic conditions. With operations spanning multiple African markets and a growing digital ecosystem, the group’s performance signals a model increasingly built on scale, diversification and technology.

But as competition intensifies, the challenge for the lender will be to sustain this momentum while adapting to evolving regulatory demands and customer expectations.

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Somalia has taken a significant step in rebuilding its aviation sector with the launch of a pilot programme for the International Air Transport Association (IATA) Billing and Settlement Plan (BSP), a system designed to streamline airline payments and ease the repatriation of revenues.

The pilot was announced on April 30 in Addis Ababa, on the sidelines of the IATA Focus Africa Conference, which concludes today, marking a key milestone in Somalia’s gradual reintegration into the global aviation industry.

The BSP is expected to address one of the most persistent challenges facing airlines operating in emerging markets—efficient and timely access to their revenues—while also strengthening financial transparency and operational efficiency across the sector.

Four travel agents and several airlines, including Ethiopian Airlines, are participating in the pilot phase. Once fully implemented, the system will be opened to more than 300 travel agents operating in Somalia, significantly expanding its reach.

At its core, the BSP is a global financial platform that facilitates transactions between airlines and IATA-accredited travel agents. It tracks ticket sales, consolidates payments, and manages the flow of funds, reducing the complexity and risks associated with multiple bilateral financial arrangements.

Globally, the system is already a cornerstone of airline distribution. In 2025 alone, the BSP processed over 700 million transactions across more than 180 countries, with a total value of $242 billion.

For Somalia, adopting the system signals growing confidence in the country’s financial and regulatory systems, as well as its ambition to position itself as a regional aviation hub.

Somalia’s Minister of Transport and Civil Aviation, Mohamed Farah Nuh, described the initiative as a pivotal moment for the country’s aviation sector.

“Somalia stands at a pivotal moment of transformation in its aviation sector. Growing connectivity regionally and globally underpins our ambition to revitalise the economy and position Mogadishu as a transport hub on the Horn of Africa,” he said.

He noted that despite decades of instability, the government has made steady progress in rebuilding and modernising its civil aviation infrastructure, including regulatory systems and operational frameworks.

The introduction of the BSP adds a critical financial layer to these reforms, ensuring that airlines can operate within a more predictable and secure payment environment.

IATA officials say the move aligns with broader efforts under its Focus Africa initiative, which aims to unlock the continent’s aviation potential by addressing structural bottlenecks, including financial systems, regulatory frameworks, and cost barriers.

“We commend the steps taken by the Somali government to modernise and rebuild its aviation infrastructure,” said Kamil Alawadhi.

“The government recognises the significant economic benefits that air travel can deliver, and we are pleased to support them on that journey. Accelerating the implementation of secure, effective, and cost-efficient financial services is a key pillar of IATA’s Focus Africa initiative,” he added.

The development comes at a time when African aviation is grappling with broader structural challenges, including blocked airline funds, high operating costs, and limited intra-African connectivity.

Against that backdrop, Somalia’s move to implement a globally recognised financial settlement system could position it as a more attractive market for airlines, potentially boosting connectivity, trade, and tourism.

With a large diaspora and growing trade links across Africa and the Middle East, demand for air travel to and from Somalia has been steadily rising. Industry observers say that improving the financial infrastructure of the sector is essential to sustaining that growth.

If successfully implemented, the BSP could help reduce financial friction, improve cash flow management for airlines, and enhance confidence among international carriers considering expanding operations into the Somali market.

As the pilot progresses toward full implementation, Somalia’s aviation sector will be closely watched as a case study in how targeted reforms—particularly in financial systems—can help unlock growth in markets long constrained by structural and institutional challenges.

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African governments are holding nearly 80 percent of blocked airline revenues globally, leaving the region’s carriers trapped in a holding pattern of minimal survival, deepening losses, and limited capacity to grow—despite charging some of the highest airfares in the world.

The long-running issue returned to the spotlight this week as the International Air Transport Association (IATA) told stakeholders at the fourth Focus Africa Conference in Addis Ababa that governments across the continent were blocking the release of USD774 million in airline revenues as of the end of March 2026.

Algeria accounts for the largest share at USD258 million, followed by countries using the Central African franc (XAF) zone at USD105 million, Mozambique at USD82 million, Eritrea at USD78 million, and Angola at USD73 million.

“In Algeria, and all locations where airlines are denied access to their revenues, governments must engage with the industry to find a sustainable solution or risk the consequences on connectivity,” said Kamil Alawadhi, IATA’s Vice President for Africa and the Middle East region.

Alawadhi warned that the impact of blocked funds goes beyond balance sheets, striking at the fragile economics of African aviation. Even under normal conditions, airlines on the continent are projected to earn justUSD$1.3 per passenger—one of the thinnest margins globally.

That margin can quickly disappear if revenues are not repatriated on time and are eroded by currency depreciation.

The result is an industry that, despite enormous growth potential, remains structurally constrained.

Speaking at the same forum, Mesfin Tassew, Chief Executive of Ethiopian Airlines group and host of the conference, said many of the challenges facing African aviation are longstanding but have been intensified by recent global disruptions.

These include high operating costs, limited aircraft maintenance capacity, shortages of skilled aviation professionals, and gaps in airport and air navigation infrastructure.

More recently, the industry has also been hit by a global shortage of aircraft and spare parts, conflicts in the Gulf region, and rising jet fuel prices.

“In many cases, however, the primary challenge of African aviation is a misunderstanding of the role of the investment, absence of a harmonised enabling policy and regulatory framework, as well as limited governance and leadership capacity across the industry,” Mesfin said.

Beyond blocked funds, Africa’s aviation potential is further held back by weak intra-African connectivity, restrictive visa regimes, and high taxes and charges that make flying unaffordable for many.

According to IATA, nearly half of all intra-African travel still requires visas prior to departure, limiting mobility, tourism, and regional integration. Where visa restrictions have been eased, countries have recorded stronger tourism flows and more resilient air routes.

At the same time, the cost of doing aviation business in Africa remains about 15 percent higher than the global average, largely due to government-imposed taxes and charges.

Some of these charges directly affect ticket prices and travel decisions. In Tanzania, for example, a $45 one-way passenger data charge is among the highest globally, while similar fees in Angola, DR Congo, Nigeria, Ghana, and Kenya exceed international norms.

IATA warned that such costs distort ticket pricing and undermine the competitiveness of African destinations.

Yet, amid the challenges, there are signs of progress.

L-R: IATA Senior Vice President, Operations, Safety and Security Nick Careen, Ethiopian Group CEO Mesfin Tassew and Kamil Alawadhi, IATA VP for Africa and the Middle East, taking questions from a section of the African air transport and aviation press at Ethiopian Skylight Hotel, Addis Ababa on April 29.

Aviation safety across the continent has improved significantly, with the accident rate falling from 12.13 to 7.86 per million sectors between 2024 and 2025. However, this remains well above the global average of 1.32 and still the highest among all regions.

To sustain improvements, IATA is urging governments and industry players to increase compliance with international safety standards, improve the publication of accident investigation reports, and expand the use of global safety audit programmes.

Looking ahead, the association is calling for a coordinated strategy to unlock the sector’s potential, built around four key pillars: safety, cost competitiveness, ease of doing business, and sustainability.

Central to this is the need to ensure airlines can freely repatriate their revenues in line with international agreements. Failure to do so, IATA says, risks reducing connectivity as airlines scale back operations or withdraw from affected markets.

The association is also pushing for the implementation of a December 2025 decision by the Economic Community of West African States (ECOWAS) to eliminate aviation taxes and reduce selected charges by 25 percent.

On sustainability, IATA says Africa holds significant untapped potential, particularly in the production of Sustainable Aviation Fuel (SAF).

Sub-Saharan Africa could supply up to 106 million tonnes of SAF feedstock by 2050 from agricultural residues, forestry waste, and municipal solid waste, creating jobs and strengthening energy security in the process.

It also pointed to opportunities under the global carbon offsetting scheme for aviation, where African countries could generate climate finance by supplying eligible emission units.

As discussions continue in Addis Ababa, industry leaders are increasingly framing Africa’s aviation challenge not as one of demand, but of policy alignment.

With a rapidly growing population and rising demand for connectivity, the continent’s skies remain one of the world’s biggest untapped aviation markets.

But until governments ease financial restrictions, lower costs, and remove regulatory bottlenecks, airlines may remain grounded—financially—despite strong passenger demand.

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European aircraft manufacturer Airbus posted a sharp decline in first-quarter earnings for 2026, as fewer commercial aircraft deliveries and persistent supply chain disruptions—particularly shortages of Pratt & Whitney engines—dragged down profitability despite strong demand and a solid performance from its defence business.

The company reported consolidated revenues of €12.7 billion for the three months ended March 31, down 7 percent from €13.5 billion in the same period last year. EBIT Adjusted, Airbus’ preferred measure of underlying operating performance, fell 52 percent to €300 million from €624 million, while reported net income declined 26 percent to €586 million.

Chief Executive Officer Guillaume Faury said the results reflected a difficult but manageable operating environment.

“The Q1 results reflect the lower level of commercial aircraft deliveries and a strong performance in our Defence and Space division. The operating environment remains dynamic and complex,” Faury said, noting that Airbus was also closely monitoring the fast-changing geopolitical situation in the Middle East.

The aerospace giant delivered 114 commercial aircraft during the quarter, down from 136 in Q1 2025. These included 19 A220s, 81 A320 Family aircraft, three A330s and 11 A350s.

The lower delivery volumes pushed revenues from Airbus’ commercial aircraft division down 11 percent to €8.4 billion, while EBIT Adjusted for the segment plunged to just €81 million from €494 million a year earlier.

Airbus said the main constraint continues to be engine supply shortages from Pratt & Whitney, which are slowing the production ramp-up of the A320 Family programme.

The manufacturer said it still expects to reach a production rate of between 70 and 75 A320 Family aircraft per month by the end of 2027, before stabilising at 75 aircraft monthly. It also maintained its target of producing 13 A220 aircraft per month by 2028.

Despite weaker earnings, customer demand remained robust. Gross commercial aircraft orders rose to 408 aircraft from 280 a year earlier, while net orders nearly doubled to 398 aircraft after cancellations. Airbus’ total commercial aircraft backlog now stands at 9,037 aircraft, underlining continued global demand for new-generation fuel-efficient fleets.

Its Defence and Space division provided a major cushion during the quarter, with revenues rising 7 percent year-on-year to €2.8 billion. EBIT Adjusted for the segment climbed 69 percent to €130 million, supported by stronger profitability across all business units and rising global defence demand.

Order intake by value in Defence and Space nearly doubled to €5 billion from €2.6 billion, largely driven by the Air Power business unit.

Airbus Helicopters remained broadly stable, posting revenues of €1.6 billion with deliveries increasing slightly to 56 units from 51. However, EBIT Adjusted slipped to €65 million from €78 million due to higher research and development spending.

The group’s free cash flow position, however, deteriorated sharply. Free cash flow before customer financing fell to negative €2.5 billion compared to negative €310 million in the same quarter last year. Airbus attributed this mainly to the lower delivery levels and planned inventory build-up linked to production ramp-ups across programmes.

Its gross cash position stood at €25.2 billion at the end of March, down from €27.2 billion at the end of 2025, while net cash declined 19 percent to €9.8 billion.

Even with the weak start to the year, Airbus left its full-year 2026 guidance unchanged, signalling confidence that production will improve in the coming quarters.

The company is still targeting around 870 commercial aircraft deliveries for the year, EBIT Adjusted of around €7.5 billion and free cash flow before customer financing of about €4.5 billion.

Analysts say the maintained guidance suggests Airbus expects supplier bottlenecks to ease gradually, though risks remain elevated due to global trade tensions, tariff uncertainties and geopolitical instability.

The company said its outlook assumes no additional disruptions to global trade, air traffic, supply chains or internal operations and already factors in the impact of currently applicable tariffs.

With its order book stretching years into the future, Airbus remains one of the strongest barometers of global airline confidence. But the first quarter results show that even strong demand cannot fully offset production constraints in an industry still navigating post-pandemic supply chain realities.

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Uganda Airlines has narrowed its net loss by 27 percent and posted strong revenue growth, signalling renewed momentum even as the carrier grapples with recent upsets to the network, especially long-haul operations

According to the airline’s latest board report presented during the Uganda National Airline Company Limited’s 4th Annual General Meeting (AGM), revenue rose by 32 percent from UGX347 billion in the 2023/24 financial year to UGX437.3 billion in 2024/25, while net losses reduced significantly despite continued operational challenges.

The figures were presented to shareholders during the AGM held on April 22 in the boardroom of the Ministry of Finance, Planning and Economic Development.

The meeting also marked the first AGM attended by Mr. Girma Wake, the management consultant and acting Chief Executive Officer of Uganda Airlines, whose appointment government officials described as a turning point for the carrier.

Uganda Airlines, a limited liability company wholly owned by the Government of Uganda through the Ministry of Finance and the Ministry of Works and Transport, continues to position itself as a strategic national asset supporting trade, tourism, cargo movement, and regional connectivity.

Speaking on behalf of Finance Minister Matia Kasaija, junior finance minister responsible for Privatisation and Investment, Evelyn Anite, welcomed Wake’s appointment and expressed confidence in his leadership.

“We are confident that Mr. Wake’s vast experience marks a new dawn for Uganda Airlines. The challenges previously faced will be addressed, and the airline is now on a stronger path,” she said.

Anite reaffirmed government’s commitment to supporting the airline, emphasising that Uganda Airlines remains a strategic investment with significant long-term growth potential.

“Government is committed to ensuring the airline operates efficiently and profitably. We will continue to provide the necessary financial support to meet its investment needs in a timely manner,” she added.

She noted that globally, airlines typically take more than a decade to stabilise financially, describing Uganda’s continued investment in the national carrier as both timely and strategic.

She further highlighted the airline’s importance in strengthening trade, tourism, and cargo operations in line with government’s Tenfold Growth Strategy.

Works and Transport Minister Gen. Katumba Wamala also described Wake’s appointment as timely and critical to the airline’s next phase of growth.

“We are fortunate to have a CEO with proven experience at a time when it is most needed. Since his arrival, there is renewed confidence and stability within the airline,” Katumba said, pledging full government support to management.

He noted that despite operational headwinds, Uganda Airlines continues to register steady progress, including capturing more than 38 percent of passenger traffic at Entebbe International Airport.

Within the African market alone, the airline carried 38 percent of passengers and generated 49 percent of revenue from Entebbe, underlining its growing influence in reshaping regional travel patterns.

Since commencing operations in August 2019, Uganda Airlines has expanded its network to 17 destinations across Africa, the Middle East, Europe, and Asia.

Presenting the Board’s report, Chairperson Priscilla Mirembe Serukka said the airline’s financial and operational gains reflect a deliberate strategy to transition from a startup airline into a competitive regional player.

“The airline reduced its net loss by 27 percent, signalling a positive trajectory toward financial sustainability. We have also strengthened management structures and internal controls,” she said.

Serukka also reported revenue growth from UGX349 billion to UGX437.3 billion, growth in connecting passengers, the opening of new passenger and cargo routes, and expanded partnerships with local suppliers.

The airline’s fleet has also grown to seven aircraft including a leased airframe, strengthening operational capacity as it seeks to deepen both regional and international connectivity.

“And we’re looking forward to opening new routes as well as progressing very well to open the maintenance unit,” Serukka said.

She added that Uganda Airlines currently holds a 27 percent market share of all traffic at Entebbe International Airport and is increasingly contributing to government revenues while supporting wider economic development.

To sustain that momentum, the Board has finalized a 10-year strategic plan that aims to expand the airline’s route network from the current 17 destinations to 32 destinations.

Planned long-term investments include a dedicated head office, a maintenance hangar, a cargo warehouse, a premium-class hotel, and a modern business-class lounge—critical infrastructure intended to strengthen the airline’s competitiveness and reduce long-term operating costs.

Serukka called on shareholders to approve an increase in working capital to strengthen liquidity and ensure smooth operations, while also emphasizing the need for timely release of government funding.

“Over the past years, the airline has continued to evolve as a strategic national asset. We are not only connecting people and places but also actively supporting the country’s broader economic ambitions under the Government’s Tenfold Growth Strategy,” she said.

The Board also committed to strengthening corporate governance, maintaining disciplined cost management, optimizing the route network, and improving passenger experience through digital transformation.

In another operational boost, the airline announced the return to service of its Airbus A330-800neo, registration 5X-NIL, which resumed operations with a flight to Dubai on April 17, 2026.

The return of the aircraft is expected to strengthen capacity across the international network, particularly on long-haul routes.

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The Air Transport IT Insights 2025 Report shows that while airlines in the Middle East and Africa are increasing investment in digital systems, airports are lagging behind—creating fragmentation across the aviation ecosystem. Only 43 percent of airports in the region plan to increase technology spending, compared to 63 percent globally.

In this interview with 256 Business News,’ Aviation & Technology Lead Michael Wakabi, SITA President for the Middle East, Africa and Türkiye, Selim Bouri, explains why data integration matters more than new terminals, why AI is only as good as the data behind it, and why Africa has a unique chance to build smarter aviation systems from the ground up.

Q: Your report suggests Africa and the Middle East are not getting the full value from aviation technology investments. What is the problem?

Selim Bouri: The issue is not that investment is too low—it is that the value coming from that investment is often limited because systems are still fragmented.

The challenge is global, not just African. Airlines and airports are investing more in technology, which is positive, but what they get from that technology depends on data quality, data integration, and how connected those systems are.

In Africa and the Middle East, airlines are investing aggressively, and all of them plan to continue doing so. But airports are moving much more slowly. Only 43 percent of airports in the region plan to increase technology investment, while 12 percent are actually considering reducing it.

That is worrying because aviation challenges today cannot be solved by infrastructure expansion alone. Building bigger airports or buying more aircraft takes time. Technology helps solve immediate capacity constraints, disruptions, and sustainability challenges right now.

Q: So how can airlines and airports harmonise performance across the ecosystem?

Selim Bouri: We are seeing progress. About 73 percent of airlines and a similar number of airports are investing in data-driven decision-making systems.

For airlines, this includes tools that optimise aircraft trajectories using data from weather, fuel consumption, and aircraft performance. For airports, it includes biometrics, self-service systems, passenger flow management, and AI-driven customer service.

The problem is that many of these solutions still operate in isolation.

You can optimise passenger flow in one terminal, but if that is not linked to aircraft turnaround, baggage handling, fuel coordination, or slot management, delays simply move somewhere else.

That is why integration is critical. Improving one point in the system is not enough. The next stage is linking everything together so the entire ecosystem improves at once.

Q: Why is integration still so limited? Is it a technology problem or a mindset problem?

Selim Bouri: It is a combination of both, but mostly complexity.

Air transport involves many players—airlines, airports, governments, border agencies, ground handlers, and passengers. Each has different systems, different standards, and different levels of data maturity.

Airlines are often ahead because they control more of their own operations. Airports are more complex because they must coordinate with multiple airlines, governments, and service providers.

The technology exists. The real challenge is agreeing on standards, funding models, and collaboration.

Even basic IT and telecommunications infrastructure is still the number one investment priority for 56 percent of airports globally. Without that foundation, you cannot even collect and trust the data needed for advanced systems.

Q: Are the costs of fragmentation that obvious?

The new addition to the departure terminal at Entebbe that is set to open in May

Selim Bouri: Absolutely—and Africa actually has an opportunity here.

In some regions, airports have had to keep layering new technology on top of outdated systems. That creates inefficiency. In Africa, many airports still have the chance to go directly to smarter systems from the start.

It is like mobile networks. If you are building today, you do not start with 2G—you go directly to 5G.

The same logic applies in aviation.

For example, around 40 percent of airlines already use AI-based tools that optimise fuel consumption by 3 to 10 percent on the same route with the same aircraft. On a typical narrow-body flight, that can mean savings of between $75,000 and $150,000 without buying a new aircraft.

That is immediate return on investment.

Q: How can cash-strapped African airports avoid a patchwork approach as technology keeps evolving?

Selim Bouri: The answer is not chasing every new technology. It is focusing on the fundamentals.

The fundamentals are data collection, open interfaces, standardisation, modularity, and scalability.

Whatever system is chosen must be flexible enough to evolve without forcing the airport to rebuild everything later.

Airports are long-term investments. You are not building for one year—you are building for the next 10 to 20 years.

That means choosing technology that can scale with future traffic, future disruptions, and future operational demands.

Technology will change, but the need for interoperability will not.

Q: Is there a risk Africa could overinvest in hardware and underinvest elsewhere?

Selim Bouri: The bigger question is what strategic role a country wants aviation to play.

Do you want a national airline? A regional hub? A cargo gateway? A maintenance centre? A tourism destination?

Those choices determine investment priorities.

What is clear is that aviation is a major force for economic growth in Africa, and Africa is one of the fastest-growing aviation markets in the world.

Technology should be the first strategic pillar, not the last.

IT spending may represent only about 3.6 percent of airline revenue and around 8 percent of airport revenue, but it is often the most transformative investment an airport can make.

Q: If you had to prioritise, what are the top three things’ airports and airlines must do now?

Selim Bouri: First, implement AI where it creates operational value. Not because AI is fashionable, but because it helps make better decisions at the right time.

Second, improve data integration and data integrity. AI is only as good as the data behind it. If the data is weak, AI creates more disruption, not less.

Third, address capacity and sustainability in two stages—immediate technology upgrades first, and longer-term infrastructure expansion second.

Africa has a unique opportunity to build smarter from the beginning.

Instead of building first and fixing later, airports can use technology to define what should be built in the first place. That is where the real competitive advantage lies.

Q: Thank you for your time, Mr Bouri

Selim Bouri: Thank you for having me

The post SITA: Why African airports are investing more but getting less value appeared first on 256 Business News.

Michael Wakabi

The easiest answer in African aviation today may not be immune to hidden risk.

As airlines across the continent struggle with grounded aircraft, delayed spare parts, engine shortages, and fragile maintenance systems, many fleet planners are arriving at what appears to be the obvious conclusion: lean harder into Boeing.

The argument is simple enough. Boeing already commands roughly 70 percent of Africa’s commercial aircraft market. Its installed base is large. Engineers are familiar with its systems. Pilots are easier to source. Lessors are more comfortable financing it. Spare parts networks are deeper. Maintenance ecosystems emerge faster around scale.

On paper, it sounds like common sense. If Africa’s biggest aviation problem is weak support infrastructure, then surely concentrating around the largest existing platform is the safest route.

That logic mistakes convenience for resilience. What Africa needs is not deeper dependence on a single manufacturer, but deliberate fleet diversification. As recent events have demonstrated, concentration can easily become exposure.

This is not an argument against Boeing. It is an argument against dependence. And in aviation, overdependence can turn one manufacturer’s problem into a continental crisis.

This is not even a uniquely African problem. From Kenya Airways and Uganda Airlines to Air Tanzania and Ethiopian Airlines, airlines across the continent have felt the consequences of global supply chain fragility. Beyond Africa, reliability challenges involving Rolls-Royce and Pratt & Whitney powerplants have shown how quickly propulsion bottlenecks can ripple across global fleets.

That a carrier with the scale and technical depth of Ethiopian Airlines can feel that pressure should reinforce the need for greater margin within fleet strategy.

The propulsion systems market itself has also become dangerously concentrated. The growing Airbus A350 fleet, for example, depends heavily on a narrow engine supply ecosystem, effectively reducing competition and leaving operators exposed to the vulnerabilities of a single supplier chain. If a major technical issue were to arise beyond routine advisories, the implications for operators would be severe.

This is precisely why Africa should resist the temptation to simply “buy more Boeing.”

The issue is not that Boeing is the problem. The issue is that dependence is.

When too much strategic capacity sits inside one OEM ecosystem, a certification issue, labour strike, production bottleneck, regulatory crisis, or safety event at that manufacturer can trigger cascading disruption across the continent.

One catastrophic event should not have the power to paralyse African aviation at scale. Yet that is exactly the risk concentration creates.

There is another danger too—one that receives less attention, but may be even more costly over time. When dependence grows, competition dies.

The assumption that Boeing scale automatically creates efficiency ignores how monopolistic dominance shifts bargaining power. Airlines become price takers rather than strategic customers. Pricing hardens. Support responsiveness weakens. Localisation promises become optional rather than necessary.

Africa already sits low in the global priority queue behind North America, Europe, the Gulf, and Asia. If the continent voluntarily narrows its options further, it surrenders competition, one of the few negotiating tools it has.

A strong Airbus presence matters. So does stronger support for ATR, Embraer, and other aircraft types suited to African markets. Diversity at scale is not fragmentation. It is leverage.

Without it, Africa becomes a customer to be sold to, not a market to be built with.

There is often resistance to this argument because fleet diversification appears inefficient. Multiple aircraft types mean more training requirements, more maintenance complexity, and less standardisation. For airlines already operating on thin margins, simplicity is understandably attractive.

But over the long term, diversification is not inefficiency. It is strategic insurance.

No serious energy system depends on one fuel source. No financial system depends on one lender. Aviation should not depend on one manufacturer.

A diversified fleet spreads operational risk. It protects airlines from grounding shocks. It reduces vulnerability to OEM bottlenecks. It creates competitive pressure among manufacturers. It gives airlines options when the global supply chain breaks.

The objective should not be fleet simplicity at all costs. It should be survivability.

And this is where the conversation must move beyond aircraft choice itself.

Airspace Africa, in a recent article, correctly argued that Africa is not buying aircraft it cannot afford. It is buying aircraft it cannot sustain. That diagnosis is right.

But the answer is not choosing the biggest OEM. It is forcing every OEM to localise support.

Fleet acquisition should no longer be treated as a procurement exercise. It should be treated as industrial policy.

Small narrow bodies such as the Embraer’s E190 series are key to increase intra-African connectivity

Every major aircraft order should come tied to enforceable commitments: regional MRO facilities, local spare parts inventory, certified technical training academies, engine maintenance partnerships, engineering support, and real transfer of technical capability.

Aircraft should not arrive alone. They should arrive with systems.

If manufacturers want African scale, they must build African roots—not just sales offices.

Airbus opening a customer support centre in Johannesburg is a step in the right direction. Boeing should be expected to do the same at greater depth. Engine makers should be held to the same standard. Lessors and financiers too.

Governments must also stop treating aircraft deliveries as political trophies and start seeing aviation as industrial infrastructure.

China’s aviation strategy offers an important lesson here. Fleet planning was never treated simply as airline procurement—it was embedded within a broader national industrial strategy that included MRO capability, technical training, supply chains, financing structures, and eventually indigenous manufacturing ambition.

Africa must think in similarly strategic terms. Tax incentives, financing guarantees, bilateral agreements, and public-private partnerships should all be used to ensure that aircraft procurement leaves behind maintenance ecosystems, engineering jobs, and technical sovereignty.

Ethiopian did not become Africa’s strongest carrier because it flies Boeing aircraft. It succeeded because it built training depth, MRO capability, technical redundancy, and institutional discipline.

Africa’s next aviation mistake would be choosing convenience over resilience. Buying more Boeing may feel like the easiest answer. It may even work in the short term.

But the continent has already seen what happens when supply chains fail, engines disappear, and grounded aircraft become balance-sheet disasters.

The answer is not to concentrate more risk. It is to distribute it intelligently.

Fleet diversification—paired with aggressive localisation of maintenance, technical support, and industrial capability—is the only serious long-term strategy.

But fleet diversification without labour mobility and geopolitical awareness would still leave Africa exposed.

Diversification cannot simply mean buying different aircraft from different manufacturers. It must also mean distributing operational capacity intelligently across the continent, with a clear understanding of geopolitical risk, technical concentration, and labour realities.

Africa’s aviation support system today is unevenly distributed. A handful of countries—most notably Ethiopia, South Africa, Kenya, Morocco, and to a growing extent Rwanda—carry a disproportionate share of the continent’s MRO capability, technical training infrastructure, and certified engineering talent. Large parts of the continent still depend heavily on external maintenance support or on ferrying aircraft long distances for technical work.

That concentration creates another form of vulnerability.

If geopolitical instability, regulatory disruptions, currency crises, or bilateral tensions affect one of these hubs, the impact can spread far beyond national borders. Fleet diversification therefore must also be geographic diversification.

Africa needs multiple centres of technical excellence, not a single dominant node. This requires intentional policy support. Governments cannot leave this entirely to market forces because aviation infrastructure is too strategic and too capital-intensive to emerge organically at the speed the continent requires.

The uneven distribution and scarcity of technical talent make labour mobility just as important as aircraft choice. Engineers, technicians, instructors, inspectors, and licensed maintenance personnel must be able to move across borders with far less friction than they currently face. Visa barriers, licensing incompatibilities, slow work permit systems, and fragmented regulatory frameworks all weaken the continent’s ability to build a truly integrated aviation ecosystem.

An aircraft grounded in West Africa should not wait unnecessarily because the right certified engineer is trapped behind administrative barriers in East or Southern Africa.

This is precisely why the conversation must be embedded within the broader pursuit of the Single African Air Transport Market (SAATM).

Too often, SAATM is discussed mainly through the lens of passenger rights, market access, and airline competition. But its real long-term success depends just as much on the invisible infrastructure behind the flights: maintenance, certification, training, technical labour, and cross-border operational cooperation.

A single market for aircraft movement without a single framework for technical support is incomplete. SAATM should therefore evolve beyond traffic rights and become a platform for aviation industrial integration.

That means harmonising licensing standards, accelerating mutual recognition of technical qualifications, supporting regional MRO hubs, and enabling free movement of aviation professionals across the continent.

Aircraft diversity without talent mobility creates fragmentation. Talent mobility without technical infrastructure creates dependency. Both must move together. Africa’s aviation future will be secured by building a continent where aircraft, skills, and support systems can move with equal efficiency.

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Uganda’s insurance industry is growing fast, but at the 8th Annual Insurance Brokers Association of Uganda (IBAU) Conference in Mbarara this week, the conversation was less about expansion and more about something harder to quantify—trust.

Held at Hotel Triangle from April 23 to 24 under the theme “Trust Reimagined: Delivering on the Promise,” the conference brought together regulators, brokers, insurers, and financial sector leaders to confront a pressing question: can the industry sustain growth without strengthening confidence where it matters most—claims settlement?

The numbers suggest momentum. Gross written premiums rose to UGX 2.02 trillion in 2025, up from UGX 1.76 trillion the previous year. Claims payouts also climbed sharply to UGX 950 billion, nearly half of total premiums, reflecting greater responsiveness across the sector.

Yet beneath the growth lies a more fragile reality. Brokers now handle 28.03 percent of premiums, down from over 30 percent in previous years, signaling changing market dynamics and growing concern over whether customer confidence is keeping pace with industry expansion.

Opening the conference, Insurance Regulatory Authority CEO Alhaj Kaddunabbi Ibrahim Lubega warned that trust in insurance is not built through marketing campaigns or policy documents, but through the claims experience.

“Trust is not built in policies or presentations,” he told delegates. “It is tested at the moment of claims. That is where the industry either proves its promise or loses it.”

His remarks struck at the core of the sector’s long-standing challenge. In insurance, value is often invisible until a crisis occurs, and delays, disputes, or poor customer experience during claims processing can quickly destroy years of relationship building.

Bank of Uganda Deputy Governor Augustus Nuwagaba expanded the discussion beyond the sector itself, describing insurance as a key pillar of economic resilience rather than a luxury product.

“An economy is not stable if its people are unprotected,” Nuwagaba said. “We have macroeconomic stability, low inflation, a resilient financial system, but millions remain exposed to risk. That gap is not just financial, it is structural.”

Despite economic progress, insurance penetration in Uganda remains low, especially among informal workers, rural households, and small businesses. For many Ugandans, insurance is still seen as expensive, complex, and disconnected from daily realities.

It is within this context that ICEA LION positioned itself not just as a conference sponsor, but as a voice pushing for a more connected and data-driven future.

Speaking during the conference, ICEA LION Group CEO Ambrose Kibuuka argued that trust in modern insurance must be built through stronger, continuous engagement rather than isolated customer interactions.

“In the digital economy, trust is no longer built in isolation,” Kibuuka said. “It is built through connection.”

He described the future of insurance through the idea of the “connected carrier,” where insurers move beyond the traditional cycle of onboarding, renewals, and claims to create real-time engagement supported by seamless data sharing and predictive insights.

The approach reflects how digital behaviour already shapes modern consumer expectations—from personalised recommendations to real-time service delivery—and Kibuuka believes insurance must evolve in the same direction.

ICEA LION Life CEO Emmanuel Mwaka reinforced that message, stressing that data itself is not the solution unless it is used responsibly and meaningfully.

“The real value of data is only realised when it is shared responsibly, interpreted properly, and used meaningfully,” Mwaka said.

That means breaking down silos not only within insurance firms but across the broader value chain, including brokers, intermediaries, and customers. The goal, he said, is to shift from transactional insurance to relationship-driven insurance, where companies anticipate and help prevent risk rather than simply responding after loss occurs.

This remains especially important in Uganda’s broker-driven market. With only 55 licensed brokers among more than 140 insurance players, brokers remain critical to helping customers understand products, assess risks, and navigate claims.

However, their declining share of premiums suggests the industry is changing in ways that demand adaptation.

ICEA LION’s argument is that the answer may not be more products alone, but better listening, faster responses, and simpler customer journeys.

Still, conference participants repeatedly returned to one unavoidable truth: execution matters more than strategy.

“We can have all the strategies and frameworks,” said Isabella Akareut, CEO of ayo Insurance Brokers Uganda, “but without execution, nothing changes.”

That execution gap remains most visible in claims management, where delays, paperwork, and customer frustration continue to undermine confidence across the sector.

For ICEA LION, technology is not meant to replace human relationships, but to strengthen them. Artificial intelligence, data analytics, and digital platforms are only valuable if they make insurance faster, clearer, and more dependable for the people who rely on it.

Because ultimately, insurance is not about policies or premiums. It is about families protecting livelihoods, businesses managing uncertainty, and institutions delivering support when it matters most.

As the conference closed, one message stood out clearly: trust is no longer a branding exercise—it is an operational requirement.

And in a business where promises are tested only in moments of vulnerability, the insurers that succeed will be those that deliver not just coverage, but confidence.

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As Uganda approaches the long-anticipated milestone of first oil, it does so at a moment of profound contradiction in the global energy narrative. On one hand, the world is accelerating toward a low-carbon future, with growing consensus around the need to scale renewable energy.

On the other, recent geopolitical shocks—including tensions in the Middle East—have once again exposed the fragility of global energy systems and the enduring centrality of oil to economic stability.

If the global economy were truly ready to transition at pace, this would have been the moment. Instead, what we have witnessed is a sharp reminder: oil remains deeply embedded in the architecture of global growth. It is within this context that Uganda’s energy journey must be understood.

A balanced path in a polarised debate

In the years leading up to first oil, Uganda’s ambitions have faced strong resistance from sections of the international community, particularly around investments such as the East African Crude Oil Pipeline (EACOP). Critics have argued for an accelerated pivot away from fossil fuels.

These concerns are not without merit. Climate change is real, urgent, and demands decisive global action. However, the pathway to a low-carbon future is neither linear nor uniform. For emerging economies—especially in Africa—the transition must be pragmatic, sequenced, and inclusive.

At Stanbic Bank Uganda and by extension Standard Bank Group, our position has been consistent: support a just and patient energy transition—one that invests in the future of renewables while recognising the present-day role of fossil fuels in unlocking growth, industrialisation, and energy access. Uganda’s first oil is not a contradiction of the energy transition. It is part of it.

From resource extraction to economic transformation

The true measure of Uganda’s oil and gas sector will not be the number of barrels produced, but the extent to which it catalyses structural transformation across the economy.

At Stanbic, our commitment to projects such as EACOP is anchored in our purpose: “Uganda is our home, we drive her growth.” This is not merely about financing infrastructure—it is about enabling a broader ecosystem of value creation.

Through the establishment of a dedicated Oil and Gas Department, we have built the institutional capability required to support a complex and highly regulated sector. More importantly, we are working to ensure that the economic benefits of oil extend beyond extraction.

“A nation’s resources belong to its people. The opportunity before us is to ensure that the oil dollar circulates within our economy—creating enterprises, jobs, and enduring prosperity.”

Building local capacity for lasting impact

Local content remains central to this ambition. Through the Stanbic Business Incubator Limited (SBIL), in partnership with the African Development Bank, more than 200 Ugandan enterprises have attained internationally recognised ISO certification.

This is a critical step in transforming local firms from peripheral participants into competitive suppliers within the oil and gas value chain. This is how resource wealth becomes national wealth.

There is no doubt that oil presents a significant economic opportunity. The International Monetary Fund projects that Uganda’s GDP growth could rise sharply with the onset of production.

Yet history offers clear lessons: without strong institutions and prudent financial management, resource wealth can introduce volatility.

Stanbic’s role therefore extends beyond capital provision. We provide risk management, transactional banking, and advisory solutions designed to help both public and private sector players navigate price fluctuations, manage foreign exchange exposure, and build long-term resilience.

Our platinum sponsorship of the annual Oil & Gas Convention—organised by the Uganda Chamber of Energy and Minerals in partnership with the Ministry of Energy and Mineral Development and the Uganda National Oil Company—reflects our belief that sustained dialogue is essential to sector maturity.

As the industry transitions from planning to execution, collaboration between government, investors, and local enterprises will be critical in ensuring that Uganda fully realises the promise of first oil.

Beyond first oil

Energy independence is not an endpoint—it is a foundation. Uganda’s first oil should be viewed not as a departure from the future, but as a bridge to it. Revenues generated today can—and must—be reinvested into renewable energy, infrastructure, and human capital to power the next phase of growth.

The global energy transition will take time. And until it is fully realised, oil will remain a central pillar of economic activity.

Uganda is stepping into that reality with clarity and conviction. At Stanbic Bank, we are proud to stand alongside the nation—not only financing its energy future but helping to shape it. We are not just banking the oil. We are banking on Uganda.

The author is Chief Executive at Stanbic Bank Uganda, a member of the Standard Bank Group.

The post Beyond the Barrel: Stanbic’s vision for Uganda’s first oil appeared first on 256 Business News.

As airlines grapple with rising fuel uncertainty linked to disruptions in Middle East supply chains, technology providers are increasingly positioning artificial intelligence as a critical tool for balancing operational efficiency with sustainability goals.

Global air transport technology firm SITA says its AI-powered solution, SITA OptiFlight®, is helping ITA Airways significantly cut fuel consumption and carbon emissions, offering a model for carriers navigating volatile fuel markets and tightening environmental regulations.

The Italian national carrier is using the system to optimise aircraft climb performance, a phase of flight that can heavily influence overall fuel burn. According to SITA, the deployment is expected to save more than 7,100 tonnes of fuel and reduce over 22,100 tonnes of CO₂ emissions across 2025 and 2026.

The development comes at a time when airlines across Europe, Africa and the Middle East are facing renewed concerns over fuel pricing and supply resilience as geopolitical tensions in the Middle East continue to disrupt energy flows. Aviation analysts say such pressures are forcing carriers to look beyond traditional cost-cutting measures and toward data-driven operational efficiency.

SITA OptiFlight uses aircraft-specific performance data combined with real-time four-dimensional weather intelligence to calculate the most efficient climb profile for every flight. The system adjusts factors such as airspeed, altitude transitions, acceleration and climb Mach to ensure optimal performance without compromising safety or operational reliability.

Unlike standard flight optimisation tools, the platform applies tail-specific modelling for each aircraft, allowing for more precise recommendations based on the aircraft’s unique performance characteristics and changing operational conditions.

Francesco Presicce, Chief Innovation and Strategic Projects/Vision at ITA Airways, said the technology aligns with the airline’s long-term sustainability and growth strategy.

“At ITA Airways, we know that innovative technologies are key to delivering our long-term growth and sustainability strategy. Data-driven insights and artificial intelligence allow us to achieve significant fuel saving and emissions reductions without compromising efficiency or safety,” he said.

He noted that the initiative forms part of the airline’s broader effort to pursue more sustainable and responsible aviation while maintaining operational excellence.

The system has now been rolled out across ITA Airways’ fleet, underscoring the carrier’s ambition to position itself among Europe’s leaders in sustainable airline operations.

For SITA, the partnership reflects a wider industry shift in which fuel efficiency is becoming both an environmental and financial priority.

Yann Cabaret, Chief Executive Officer of SITA for Aircraft, said fuel consumption remains one of the biggest operational and regulatory challenges facing airlines worldwide.

“Fuel consumption is one of the biggest hurdles for airlines facing increasing regulatory and environmental pressures, and with it being one of the biggest costs in day-to-day operations, the need for intelligent solutions has never been greater,” Cabaret said.

He added that real-time predictive modelling enables airlines to reduce emissions while preserving optimal flight performance, making digital transformation central to aviation sustainability.

Industry observers note that while sustainable aviation fuel remains a long-term solution for decarbonisation, immediate gains are increasingly being found in operational technologies such as AI-assisted route planning, predictive maintenance and climb optimisation.

For carriers operating in Africa and the Middle East—where fuel logistics can be especially vulnerable to regional instability—such technologies could provide a significant competitive advantage. And as the world’s airlines seek to shield themselves from fuel volatility while meeting investor and regulatory demands for greener operations, solutions like SITA OptiFlight may increasingly become an operational necessity.

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