Mbarara's Grand Airport Vision Faces Economic Hurdles

President Yoweri Museveni has directed the development of a new international airport in Mbarara City, envisioned by its promoters as a significant transit and refueling hub between China and Brazil. This ambitious project, named Nyakisharara International Airport, is projected by its backers to potentially triple Uganda’s economy.

However, the project’s viability is being questioned due to the absence of a crucial feasibility study. Details regarding the airport’s cost, projected passenger and cargo volumes, and its inclusion in national development plans remain undisclosed. Aviation experts point to the slow, decades-long development of aviation hubs in other countries like Ethiopia, which were supported by robust national carriers and consistent demand. Uganda, in contrast, has struggled to maintain a viable national airline and is simultaneously developing several international airports, including Kabalega and Kidepo, alongside upgrades to Arua and planned facilities in Ntungamo.

Concerns have been raised about the proposed airport’s location at an altitude of 4,600 feet, which could impose payload restrictions on aircraft due to thinner air density. Experts suggest that Uganda should instead focus on strengthening domestic and regional aviation markets and developing an airport closer to Kampala to complement the capacity-constrained Entebbe International Airport. The proposed transit route via Mbarara between Brazil and China is also debated, with some analyses suggesting it might not offer significant time or cost savings compared to existing European routes.

While government officials have been reluctant to comment on the economic feasibility, economists note that substantial investment in supporting infrastructure like utilities, security, and healthcare would be required. The project is planned under a Build, Operate, and Transfer (BOT) model, but critics warn of risks associated with inaccurate business projections and potential funding shortfalls. Regional aviation hubs in Kenya, Ethiopia, and Rwanda are also undergoing significant expansion, intensifying competition.

Despite expert skepticism, local leadership and residents in Mbarara have welcomed the airport idea, anticipating economic growth and increased investment. However, concerns about speculative land pricing and the need for community involvement in the planning process have also surfaced. The Uganda Tourism Board anticipates the airport will boost high-value tourism to western Uganda’s national parks and cultural sites, while the hotel industry sees it as a catalyst for growth. The Mbarara City Business Community, however, expresses cautious optimism, acknowledging the potential for speculation but advising strategic engagement.

Source: Daily Monitor (Uganda) https://www.monitor.co.ug/uganda/news/national/mbarara-airport-dream-runs-into-viability-headwinds-5505876