On August 19, a signing ceremony was held to mark the shareholder agreement with IDC Group CEO, Mateyo C. Kaluba, and Ethiopian Airlines Group CEO, Tewolde Gebremariam, that will effectively see the revival of Zambia Airways.

As strategic equity partners on the national airline project of Zambia, IDC will hold 55% equity in the carrier, with Ethiopian Airlines holding 45%. The initial investment as the start-up of the national carrier commences will be US$30 million.

In a joint statement, IDC and Ethiopian Airlines said: “Obviously, as we operate the airline, we will facilitate the financing necessary to support its growth.”

It is expected that the new airline will operate 12 aircraft and carry more than 1.9 million passengers by 2028.

The statement further read: “As shareholders, we have a clear sense of the direction we need to take in order to ensure the fortunes and secure growth of the national airline. We will instil a performance-driven culture through strong corporate governance structures, and make Zambia Airways commercially viable.”

Zambia Airways will launch local and regional routes, while intercontinental routes, including Europe, the Middle East and Asia will be added in the near future.

For Ethiopian Airlines, this investment is consistent with its Vision 2025 Multiple Hubs Strategy in Africa.

Gebremariam said in the statement: “As an indigenous and truly Pan-African airline, we believe that African carriers will only get their fair share of the aviation industry and African market through partnership with other African carriers.”

Speaking on behalf of IDC, Kaluba said: “For IDC, this investment represents our commitment to deepening and strengthening Zambia’s industrialisation. The establishment of the national airline will spur growth in the tourism sector, and will have significant multiplier effect on job creation through the different businesses in the aviation supply chain such as hotels, restaurants, travel agencies, publisher and others.”

With the Zambian Government’s drive to build transportation infrastructure from the new airports, good road networks, and now the airline, IDC and Ethiopian Airlines are confident that Zambia is destined to become Southern Africa’s regional aviation and logistics hub.

In closing, the statement read: “We look forward to growing this partnership from strength to strength and seeing Zambia Airways take to the skies this year.”