Qatar Airways is considering an acquisition of up to 20% of South African-based airline Airlink, Bloomberg reports, citing people with knowledge of the matter. Airlink and Qatar Airways representatives declined to comment on the matter. The move comes as the airline seeks to expand its continental presence on the continent as the “last piece of the equation” to having a more dominant presence in the region, CEO Badr Mohammed Al-Meer told Bloomberg News in May.

The transaction appears to be the final stages, with Al-Meer indicating in May that it was “in the final stage” of investing in a southern African based airline. Qatar Airways flies to some 30 destinations across Africa and wants to expand its network through a series of partnerships and investments, Bloomberg writes.

Who owns what? Airlink ownership is split between co-founders Foster and Barrie Webb, investment firm Coronation Capital, and Sishen Iron Ore Community Development Trust, which holds a 32.5% stake in the company, the Financial Times reports.

A strategic move: The South African carrier has an operational fleet of some 66 aircrafts and operates routes to over 15 sub-Saharan African countries, including Botswana, Tanzania, and South Africa.

What could be holding things back? South Africa’s air licensing rules specify that South Africians must retain 75% control over domestic airlines, and residents must “substantially” own cross-border airlines, Bloomberg writes.

Qatar Airways already has other plans in place: The airline is currently finalizing the acquisition of a 49% stake in RwandaAir. The carrier acquired a 60% stake in a USD 1.3 bn international airport development in Rwanda back in 2019, which is slated for completion in 2027. The carrier also inaugurated its first cargo hub outside of Qatar last year at Kigali International Airport in Rwanda in partnership with RwandAir.

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