Africa's largest airline group, Ethiopian Airlines, has signed an agreement with the government of Zambia to establish and run the country's new national carrier - Zambia Airways.

The agreement was was signed in Lusaka, Zambia on 19 August by Matayo Kaluba, the Chief Executive Officer of Zambia's Industrial Development Corporation and the Chief Executive Officer of Ethiopian Airlines, Tewolde Gebremariam.

According to the agreement, the Industrial Development Corporation will hold 55% share of Zambia Airways while Ethiopian Airlines will hold 45%.

The initial investment as the new airline begins operation is USD30 million. The new airline is expected to have 12 aircraft and carry more than 1.9 million passengers by 2028.

The full statement released by the Industrial Development Corporation and Ethiopian Airlines can be downloaded here.