TANZANIA: THE government’s ambitious plans to develop a vibrant and robust aviation sector that positions Tanzania as a preferred destination for investment, trade and tourism are being realised at an impressive pace.
This bold move spans from revamping the national Air Carrier–ATCL to the construction and rehabilitation of airport infrastructures as key areas that the government has been investing substantially.
While on a State visit to the Republic of Korea last month, President Samia Suluhu Hassan made it clear that the nation’s vision is to realise a robust aviation industry that will position the nation as a preferred destination for investment, trade and tourism.
The aviation sector has remained resilient despite various global shocks particularly the Covid-19, thanks to the huge investment made by the government.
Due to government investment, significant achievements in the aviation sector which are in line with the National Five-Year Development Plan (FYDP III – 2021/22 – 2025/26) and the ruling party CCM’s 2020-2025 Election Manifesto have been registered.
Reviving ATCL is among listed flagship projects of FYDP III, deemed critical on the basis of their large positive multiplier effects to the rest of the economy, particularly for the areas that can catalyse the aspired transition towards a competitive export economy.
It is anticipated that their implementation will yield clear and, in some cases, rapid tangible positive results in relation to the set objectives and targets of FYDP III.
As such, the choice of these projects is based on their ability to cultivate and sustain a national system of competitiveness that leads to accelerated export orientation and diversification, economic growth and inclusive human development.
According to FYDP III, in reviving ATCL, the government will continue to strengthen ATCL operations by purchasing eight new Aircraft (six passengers and two cargoes), trainings to pilots and engineers as well as opening new routes.
These efforts are expected to have a direct impact on tourism industry which currently is among large contributors of government revenue. The project requires high capital investments.
Beside the possible direct monetary gains, the return of these project can be very high in form of wider sector effects – reduced costs of production, faster access to domestic and hitherto untapped regional markets and enabling the country to fully exploit its geographical location advantage.
The project offers multiple income generation projects and others ‘enabling’ – investment, employment, improved welfare and an expanding tax base.
The mega investments also included the upgrading and maintenance of airport infrastructures and facilities, purchase of new aircrafts, construction of passenger and cargo terminals and ground transportation interchanges.
The statistics from the 2024/25 Transport Ministry budget and the Tanzania Civil Aviation Authority (TCAA) show that despite the impact of Covid-19, the number of international passengers has increased to 2,311,728 as of March this year, compared to 2,090,806 in 2020.
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Also, cargo volume has increased to 27,532 tonnes as of March this year, compared to 24,172.2 tonnes in 2020. The aircraft movements increased to 205,968 as of March this year, compared to 189,183 in 2020.
Commenting, aviation sector analyst, Mr Renatus Kyakalaba said the government investment in infrastructure developments in the aviation sector would contribute significantly to economic growth.
“These investments are positive catalysts that will bring about positive growth in the aviation industry,” he said.
He said a robust economy is an important prerequisite for the aviation sector to thrive and contribute to the country’s economic development.
The aviation sector’s statistics show it has been growing remarkably, contributing 2.5 per cent to GDP in 2023, up from 0.8 per cent in 2018.
Employment in the sector also has increased by 47 per cent from pre-pandemic levels, now employing around 10,000 people.
Mr Kyakalaba said there should be concerted efforts to boost an inclusive economic growth that encompasses various sectors like mining, trade and tourism that will contribute to the vibrant aviation sector.
“Efforts should be put to attract more foreign direct investments (FDIs), meaning to bring more money into the economy, jobs creation, interaction between Tanzania and other countries and consequently boost the aviation sector,” he said.
For his part, Mr Stanslaus John, horticulture sector stakeholder said the government investment in aviation sector has created an enabling environment particularly the easy access to the international markets.
“For example, with the Air Tanzania Company Limited (ATCL)’s Boeing 767- 300F freighter aircraft it is now possible to export avocado directly to India,” he said, noting that formerly they used regional flights which was not only costly but also involved some complex transport logistics.
Also, he said the Royal Tour documentary that featured and launched by President Samia has been a driving force to increase tourists flow into the country, which in turn needs an active and vibrant aviation sector.
“What the government is doing to increase investment in the aviation sector is significantly supporting the Royal Tour’s initiative and boost the tourism sector,” he said.
A Dar es Salaam based businessman Dennis Mageno, said the ATCL’s direct flights to Guangzhou, China from Dar es Salaam has enhanced transport convenience, saving time and money that would have been spent in a connecting flights.
“For importers, the government investment in new planes has eased movement of business people to the countries for accessing goods,” he said.
However, he said apart from revamping the ATCL, the government should continue putting the enabling environment for the private sector to thrive particularly by introducing low-cost carrier for domestic and regional routes.
“We need additional airlines into the Tanzania airspace particularly the low-cost airlines to cater for the lowincome earners,” he noted.
The ATCL’s Managing Director, Engineer Ladislaus Matindi said recently that the fleet of the national flag carrier has increased to 15 and this has inspired many customers to prefer flying than ever before, saying previously air transport was considered a luxury.
For example, ATCL ferried over 1 million passengers in the last financial year compared to only 160, 000 passengers in 2016/2017 fiscal year.
Air Tanzania currently operates domestic flights to more than ten destinations namely Dar es Salaam, Dodoma, Mwanza, Mbeya, Kilimanjaro, Arusha, Ruvuma (Songea), Katavi, Zanzibar, Mtwara, Tabora and Kigoma.
The regional and international trips include Dubai (UAE), Mumbai (India), Guangzhou (China), Bujumbura (Burundi), Entebbe (Uganda), Hahaya (Comoro), Harare (Zimbabwe), Lusaka and Ndola (Zambia), Nairobi (Kenya) and Lubumbashi (Congo).
Speaking recently during the 48th Dar es Salaam International Trade Fair (DITF), Mr Shadrack Chilongani from the Tanzania Airports Authority (TAA) said the government has launched a project to improve 10 airports across the country.
He said the initiative focuses on constructing new runways and installing lighting systems at these airports.