Kenya Airways and Air Tanzania deepen regional cooperation to boost air connectivity and operational synergy

In a major step forward for East and Southern African aviation, Kenya Airways and Air Tanzania have signed a Memorandum of Understanding (MoU) to deepen strategic collaboration and improve regional air connectivity

The agreement lays the groundwork for expanded cooperation between the two national carriers, with a focus on building regional and international partnerships that favour cooperation over competition. Both airlines will combine resources and expertise to support sustainable, cost-effective growth in the aviation sector.

The MoU highlights key areas of collaboration including the exchange of knowledge and best practices in human resource training, aircraft maintenance, engineering, cargo services, technical cooperation, MRO (maintenance, repair and overhaul), safety, and innovation. This joint approach aims to deliver more integrated travel options and improve service efficiency across the region.

Speaking at the signing ceremony, Allan Kilavuka, group managing director and CEO of Kenya Airways, said, "This partnership underscores our commitment to building regional capacity to support economic growth, trade, and tourism across East Africa. By collaborating closely with Air Tanzania, we can jointly offer our passengers and cargo clients more flexible and efficient travel solutions."

Air Tanzania CEO Peter Ulanga added, "This collaboration marks a significant milestone in our efforts to expand our regional presence and better serve the growing demand for air travel in Africa. Together with Kenya Airways, we are creating a stronger, more connected aviation landscape that will benefit our economies and our people."

The MoU was formalised during a ceremony at the Johari Rotana Hotel in Dar es Salaam, Tanzania, where both CEOs signed the agreement.

This strategic partnership is expected to foster a more integrated, competitive, and sustainable aviation environment across Africa, opening new market opportunities and strengthening the economic fabric of the communities served by both airlines.

Dr Brook Taye (left), CEO of EIH, pictured with Shahram Falati, IVECO’s business director for Africa & Middle East. (Image source: IVECO)

This year, IVECO and AMCE celebrate 50 years partnership driving Ethiopia’s automotive sector

AMCE (Automotive Manufacturing Company of Ethiopia), a portfolio company of Ethiopian Investment Holdings (EIH), teamed up with global automotive leader IVECO in 1975, a collaboration that has played a defining role in Ethiopia’s transport and industrial development.

Established in 1970 and entering a joint venture with FIAT/IVECO shortly thereafter, AMCE has now assembled and delivered more than 30,000 IVECO commercial vehicles over five decades including the iconic 682N3 trucks, Trakker, IVECO T-Way, Leoncino buses, and specialized trailers built to serve Ethiopia’s growing logistics and public service sectors.

“For 50 years, AMCE and IVECO have worked hand-in-hand to deliver durable, reliable, and locally assembled vehicles that move Ethiopia forward,” said Antonio Caruso, AMCE general manager.

“We are proud of the legacy we’ve built together and look forward to continuing this journey of innovation and partnership.”

Founded in 1970, AMCE operates under a joint venture structure, with 70% ownership by IVECO and 30% by the Ethiopian government through EIH.

The impact of the AMCE and IVECO partnership extends far beyond assembly lines, however.

It has enabled technology and skills transfer across Ethiopia’s industrial ecosystem, spurring the growth of local manufacturers.

The after-sales and maintenance sector has similarly benefited, with technical expertise shared with workshops and service providers from Adama to Bahir Dar.

AMCE’s spare parts dealers throughout the country also allow IVECO customers access to genuine parts.

As Ethiopia continues to prioritise industrialisation and logistics modernisation, IVECO and AMCE remain committed to supporting these national priorities through advanced vehicle solutions, workforce training and local value creation.

“AMCE stands as a model of how joint ventures can deliver long-term economic and social value for Ethiopia,” said Dr Brook Taye, CEO of EIH.

“This partnership has been instrumental in strengthening Ethiopia’s automotive capacity and driving sustainable industrial growth.”

He added: “The next phase of our partnership will focus on addressing the logistics sector constraints in partnership with our portfolio companies and the private sector and introducing a wide range of IVECO’s electric vehicle options to the Ethiopian market.”

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African Development Bank funds feasibility for Rwanda’s US$100mn cable car to improve urban transport access. (Image source: AfDB)

The African Development Bank (AfDB) has approved a US$500,000 grant to fund a feasibility study for Kigali’s proposed aerial urban transit system, set to become sub-Saharan Africa’s first cable car network

The initiative is being spearheaded by Ropeways Transit Rwanda Ltd (RTRL).

The funding comes from the Bank’s Urban and Municipal Development Fund (UMDF) and will support the development of the Kigali Urban Cable Car Project. Valued at US$100mn, the 5.5 km transport solution is designed to alleviate traffic congestion, cut greenhouse gas emissions, and improve access to jobs and essential services for underserved communities.

Hosted by the African Development Bank, the UMDF provides technical assistance and financial support to cities, helping them identify and prepare investment-ready urban projects.

Phase 1 of the project will cover two main routes: from Nyabugogo Taxi Park to the Central Business District, and from the Kigali Convention Center to Kigali Sports City, passing key landmarks such as Amahoro Stadium, BK Arena and Zaria Court.

The feasibility study aims to attract international investment, potentially through platforms such as the Africa Investment Forum (AIF). UMDF has previously supported Rwanda’s Kigali Urban Transport Improvement Project to enhance investor confidence in the transport sector.

Construction is expected to begin in late 2026, with commissioning planned for 2028. Once operational, the system could carry over 50,000 passengers daily on a 15-minute end-to-end journey, fully integrated with Kigali’s broader transport network.

African Development Bank Group president Dr. Akinwumi Adesina said, “This transformative project aligns perfectly with the Bank’s vision for sustainable, green climate-resilient urban mobility infrastructure, and with the Bank’s Ten-Year Strategy, which focuses on urbanisation, and the Alliance for Green Infrastructure in Africa (AGIA), a global partnership initiative driven by the African Development Bank Group, Africa50 and the African Union. By financing Rwanda’s urban cable car system, we are investing in a scalable model of low-carbon, inclusive public transport that cities across Africa can emulate.”

The project also supports Rwanda’s climate targets, as outlined in its Green Taxonomy, E-mobility Strategy and Climate and Nature Finance Strategy, aiming to cut emissions by 38% by 2030 and reach carbon neutrality by 2050.

The cable car project will be implemented under a Public-Private Partnership (PPP), according to Imena Munyampenda, Director General of the Rwanda Transport Development Agency.

The feasibility phase will draw insights from successful cable car systems in cities like La Paz, Bolivia and Singapore, and will incorporate inclusive design principles for disabled access and employment opportunities for women, low-income groups, and youth.

Blended financing model

The project’s US$100mn financing will include grants, concessional loans, blended capital, and technical assistance. The UMDF grant will specifically support assessment of the viability gap. The Rwandan government will partner with the African Development Bank Group and others including IFC, Africa50, TDB, AFC, and private investors under the AGIA to structure blended and commercial finance.