by Ben Taylor

Progress with financing for Standard Gauge Railway
The government has made further progress towards raising finance for work on upgrading the Central Line railway, after signing a loan agreement with Standard Chartered Bank Tanzania for $1.46 billion.

The money will go towards the estimated $14 billion cost of the project, which involves replacing the existing colonial-era line from Dar es Salaam to Dodoma and beyond with standard gauge track. Specifically, the Ministry of Finance and Planning said in a statement that the loan would fund the section from Dar to Matukupora, near Dodoma.

“Standard Chartered Tanzania acted as global co-ordinator, bookrunner and mandated lead arranger on the facility agreement that is the largest foreign currency financing raised by the ministry of finance to date,” the statement said, adding that most of the financing would come from Sweden’s and Denmark’s export credit agencies.

The loan repayments are spread over a 20-year timespan, but no details of interest rates were made public.

Road bridge brought down by floods

Floods in early March brought down a major road bridge on the main road between Morogoro and Dodoma. This effectively left travellers and traders without a simple road connection between the country’s economic and political.

Following the collapse of the Kiegeya Bridge near Dumila, bus operators were forced to divert via Iringa to connect between Dodoma and Dar es Salaam and individual travellers had to pay higher ticket prices. Those transporting cargo by truck had to wait for a temporary bridge to be completed. This applied also to those connecting from Dar through Dodoma to other major towns including Singida, Tabora, Mwanza, Kigoma, Geita and Shinyanga, and to Rwanda and Burundi.

The Prime Minister, Kassim Majaliwa, while touring ongoing work to build a temporary replacement bridge, ordered that the acting manager for Tanzania Roads Agency (Tanroads) in Morogoro, Mr Godfrey Andalwisye, be removed from office. The Prime Minister felt that negligence by Tanroads engineers, failing to conduct routine checks on infrastructure, had contributed to the collapse of the bridge.

Mr Majaliwa asked Tanzania People’s Defence Forces (TPDF) and road engineers in Morogoro and Dodoma to join their forces and ensure that they find an alternative route so that vehicles can start passing the area as construction work on the bridge continues. A temporary crossing was brought into use a few days later.

Dar commuter rail route expansion proposed
The Tanzania Railway Corporation (TRC) has proposed expanding its network of commuter rail services in and around Dar es Salaam. Their plan involves the construction of six new lines, in addition to the three lines currently providing services to commuters on sections of the Central line and TAZARA line.

The proposed new lines would link Mikocheni-Ubungo-Tazara (route A), City Centre-airport (route B), Mwenge-Bagamoyo (route C), Pugu­Kibaha-Kunduchi (route D), Mtoni-Tabata-Ubungo-Mwenge (route E) and City Centre-Kigamboni via Nyerere Bridge (route F). A feasibility study a preliminary design were completed in December 2019, according to TRC.

TRC’s director of Corporate Planning and Investment, Ms Nzeyimana Dyegula, noted that rapid population growth in Dar es Salaam meant increasing need for commuter transport services.

“The annual population growth in Dar city is an average of 6.1%,” she explained, “with expectation of reaching around 10 million people come 2030 from current six million. The increasing population will also need transport.”

Approximately 6 million passengers (around 20,000 per day) used the existing commuter rail routes in Dar es Salaam in 2018.

Another legal and financial blow to Air Tanzania
Longstanding disputes between Tanzania and various international suppliers and financiers have caused multiple problems in recent years, hampering the revival of the Air Tanzania (ATCL) spearheaded by President Magufuli. The latest case came when a UK court ruled that ATCL will have to pay a Liberian company $30 million in compensation for an aborted aircraft leasing deal.

The case involved a 2013 aircraft-leasing deal from Willis Trading, signed by former ATCL managing director David Mattaka. UK High Court Judge Christopher Butcher ordered ATCL to pay the money plus interest that reportedly amounts to $10 million to the Liberian company.

Willis Trading went to court to enforce its claim after ATCL pulled out of the lease contract and subsequent compensation agreement in 2014. The government had challenged the deal which President Magufuli has publicly condemned.

Mr Mattaka was in March 2016 charged in court with abuse of office and abuse of position for signing the lease without complying with the relevant procurement legislation. The case is still pending in court in Tanzania.

The UK court rejected ATCL’s efforts to shrug off the debt by blaming its former CEO Mattaka.

The lease agreement stems from the Tanzanian government’s 2007 decision to expand and modernize the fleet of Air Tanzania which it partially owned then. The Ministry of Infrastructure Development gave permission to Mr Mattaka to lease aircraft as an interim measure until certain Airbus aircraft were available starting in 2011.

The agreement required the airline to pay $370,000 (TSh 851m) per
month for the used Airbus airplane. But work needed to be done on the plane, which operated flights only between May and December 2008 before being grounded again for additional maintenance work.

According to the judgement, after ATCL stopped paying for the lease, which resulted in a debt due to Wallis of more than $45 million, the parties reached a settlement in August 2013, in which the government agreed to pay $42 million (TSh 96.6bn). After making six payments up until October 2014, totalling more than $26 million (TSh 59.8bn), the government stopped making payments.

Previous cases have seen new or recently-purchased Air Tanzania aircraft impounded in Canada and South Africa following court decisions in favour of companies that have financial claims against the government of Tanzania.

by Ben Taylor

Growth and growing pains for Air Tanzania
The fleet of aircraft operated by Air Tanzania (ATCL) continues to grow, with the arrival in December of a new Bombardier Q400. This is the eighth aircraft (two Boeing 787-8 Dreamliners, two Airbus A-220-300 and four Bombardier Q400s) to be purchased under the administration of President Magufuli, who has committed to reviving the national airline, with plans (and orders) in place to expand the fleet to eleven.

The plane’s arrival took place a day after President Magufuli had announced that the aircraft, which had previously been impounded in Canada in November had been released. The President did not give details of what was done that led to the release of the aircraft.

According to Foreign Affairs Minister, Palamagamba Kabudi, the seizure was because of a dispute between Tanzania and a South African farmer, Hermanus Steyn, “seeking compensation for a farm and other properties that was nationalized in the 1980s”. Mr Steyn had filed a claim in Canada.

This was the third seizure incident of an Air Tanzania aircraft, and the second in Canada. The third took place in August, when South African authorities impounded an Airbus 220-300 leased by Air Tanzania.

In October, ATCL indefinitely suspended flights to and from South Africa. The reason for the suspension was not disclosed, though it followed on from a temporary suspension that Minister of Works, Transport and Communication, Isack Kamwelwe, had described as being “due to xenophobic violence”. However, suspicions remain that the court action in South Africa may have played a role. The temporary suspension was put in place in September, the day after the impounded plane was released.

The Dar es Salaam-Johannesburg route was launched in June 2019, with ATCL operating four flights a week. The maiden flight on the route saw a delegation from the national carrier turned away at the Oliver Tambo International Airport, blamed on a “miscommunication” between the airport and immigration officials. Two Tanzanian Ministers, several ATCL officials and journalists were denied entry into the airport for a welcome ceremony.

Progress with rail revival
Tanzania Railway Corporation (TRC) started operating a new scheduled train from Dar es Salaam to Moshi via Tanga in December 2019, following successful trial trip one week earlier.

TRC is restarting the route after 25 years with trains that will have eight passenger wagons and the capacity to transport 700 passengers.

Earlier in 2019, freight services connecting Tanga and Moshi were restarted, with the hope of reducing heavy transport of cement on the trunk roads connecting Arusha and Moshi with the coast. The route was briefly suspended in October following rain damage.

At the launch event for the freight route, the Prime Minister indicated that the long-disused section of the line between Moshi and Arusha would also be restored. TRC has also reported that a feasibility study for extending the line as far as Musoma has been completed.

The upgrade of the Central Line to standard gauge (SGR) has also seen progress. TRC Director General, Mr Masanja Kadogosa, said the construction of the first SGR section from Dar es Salaam from Morogoro has reached 72% completion while the Morogoro to Dodoma section has reached 22%. TSh 2.1 billion from internal sources has financed this work.

New ship to be called “MV Mwanza Hapa Kazi Tu”
Minister of Works, Transport and Communication, Isack Kamwelwe, has announced that a new ship under construction in Mwanza is to be called MV Mwanza Hapa Kazi Tu.

The new ship, costing TSh 89 billion, will be 92.6 metres long, 17 metres wide and 11.2 metres high, with a carrying capacity of 1200 passengers and 400 tonnes of cargo. Upon completion it will be owned and operated by the government, plying the waters of Lake Victoria.

‘Hapa Kazi Tu’ is a slogan President John Magufuli used during 2015 presidential campaign. The slogan translates as Just work, nothing else.
The minister explained that there is an official government committee that devises names for government projects.

While on a campaign trail in 2015, President John Magufuli promised to build a new ship to replace MV Bukoba which was involved in a tragic accident 1996.

Looks don’t matter at Air Tanzania, says Minister
Deputy Minister of Works, Transport and Communication, Atastashta Nditiye sparked laughter in Parliament by stating that the government does not use beauty as a key criterion when hiring staff for Air Tanzania. He was responding to an MP calling on the airline to emulate other carriers by hiring staff with aesthetic qualities that attract clients to improve the airline’s visibility.

Nditiye explained there is a well laid down procedure that governs the hiring of staff at ATCL including that the applicant must be fluent in both Kiswahili and English and must have a certificate in either airport ground service or in-flight service. “Above all they must be of good conduct which has to be proven,” said Mr Nditiye.

by Ben Taylor

Dar Airport Terminal III open
President John Pombe Magufuli opened the Terminal III building at the Julius Nyerere International Airport on August 1, 2019. The new terminal has the capacity to handle 24 large planes concurrently, and six million passengers annually.

Together with the other two terminals, the entire airport will now be able to handle more than 8 million passengers each year. This represents a significant increase on the airport’s busiest year to date: 2016, when 2.5 million passengers passed through. It is expected that Terminal III will handle international flights, while Terminal II will in future only operate domestic flights. The old international terminal is now due for refurbishment and technical upgrading.

The construction of the new facility cost the government a reported TSh 705 billion (US$ 282m). Of this amount, the Tanzanian government paid 15% in cash, with the balance provided in the form of loans from a range of lenders including HSBC bank. “Terminal three has been built using taxpayers money. As it stands, they need to feel the benefit of their money,” noted the President. He therefore directed the Works, Transport and Communication Ministry to ensure that all business at the new premises should be Tanzanian-owned.

Construction of the new terminal building, by Dutch contractors BAM Group, began in 2014. It had initially been due to be completed in 2016, but this was delayed, reportedly due to shortage of funds and a dispute over VAT payments. President Magufuli ordered a probe into the airport project in February 2018 after project costs and construction schedules were derailed.

Terminal I was originally constructed in 1956 by the colonial govern­ment, with capacity of handling 500,000 passengers a year. Terminal II, with capacity of handling 1.5 million passengers, opened in 1984. (The Citizen, The Guardian)

Hello Mumbai, London to follow soon?
The inauguration of Terminal III at JNIA came two weeks after the relaunch of long-haul flights to Mumbai, India by the national carrier Air Tanzania. A month earlier, the national carrier launched a direct flight from Dar es Salaam to Johannesburg in South Africa. This brings to seven ATCL’s number of international routes.

Passengers on the inaugural flight included the Minister for Works, Transport and Communications, Mr Isaak Kamwelwe, senior govern­ment officials, ATCL staff and journalists.

Mr Kamwelwe expressed optimism that the new route would help in cutting the time spent by passengers who had to connect through Nairobi, Dubai and South Africa. He added that the Mumbai route is of great importance in cementing relationships between Tanzania and India, noting that it would spur the growth of tourism and trade between the two countries. “India has high potential as a tourists source market, and we must take advantage of this by ensuring that we maxi­mally utilize the available opportunities,” the minister said.

The Mumbai route – to be operated three times a week – heralds the airline’s foray into the Asian market. Other planned routes are Bangkok, Thailand, and the Chinese city of Guangzhou.

Air Tanzania spokesperson Josephat Kagirwa said they are also plan­ning flights to London, to Lagos in Nigeria and Accra, Ghana. In addi­tion, a route to Nairobi, Kenya is anticipated.

Significant moves towards establishing the London route have also been completed. The airline has secured three landing slots per week for London’s Gatwick Airport. It is expected that flights will connect both Dar es Salaam and Kilimanjaro Airports with Gatwick on Wednesday, Friday and Sunday each week.

Before this route can begin operations, ATCL need to secure European Union safety standards certification. If Britain leaves the EU later this year as planned, this will require two signatory bodies to approve instead of one: a double headache for the airline, which only regularised its membership with the International Air Transport Association (IATA) recently, by paying back owed membership fees. However, ATCL has already completed the IATA Operational Safety Audit (IOSA).

Currently, there is no direct route from London to Tanzania. British Airways stopped operating the route after four decades in 2013, explaining that it was unable to do so at a profit.

Bagamoyo port development stalled
Talks on a proposed $10 billion development of a port at Bagamoyo have stalled. According to Tanzania Ports Authority (TPA) director gen­eral Deusdedit Kakoko, this is because investors’ conditions were likely to deny Tanzania maximum benefit from the project. “The conditions include investors’ demand that they be allowed to set charges for cargo passing through the port. They also want tax exemption on various goods in addition to being compensated for any losses incurred during implementation of the project,” he told The Citizen newspaper in early May.

An initial agreement on the project was signed in 2013 during a cer­emony witnessed by President Jakaya Kikwete and Chinese President Xi Jinping. The project was to have been executed by China and Oman’s State General Reserve Fund (SGRF).

In November 2017, SGRF announced that the project would entail the construction in phases of a maritime port built to international stand­ards. The first phase was planned to include the construction of four berths, two of which were to have been set aside for containers, one for multiple uses and another for support services. However, these plans now seem to be in doubt.

According to Mr Kakoko, it was odd that the developers sought tax exemptions on the grounds there was insufficient cargo in the country. “If the country has insufficient cargo, why do they seriously consider Tanzania for investment in railways and ports? The condition requiring the government to compensate the companies in case of losses is the worst. Who knows that they will incur losses? This demand can render the country bankrupt,” he said.

According to him, the doors for discussions were still wide open, noting that the interests of Tanzania will have to take priority. “We are waiting for them. We will be ready for equal participation provided they relax their conditions. They should just bring in the money and be ready to share it with the country, but they should forget about getting 100 per cent preferential treatment,” said Mr Kakoko.

A month later, the stakes were raised further when President Magufuli weighed in on a related matter. The President expressed his strong opposition to the proposed Bagamoyo Special Economic Zone, a 3,000-hectare port and industrial city north of Dar es Salaam.

According to the President, allowing the Bagamoyo initiative to pro­gress would halt expansion of other ports including Tanga and Mtwara, and would entail long tax breaks for investors in the special economic zone. The government has also argued that it would also lose some sovereignty in the management of the project.

The President suggested corruption may have been involved in the government’s payment of billions of shillings as compensation for local residents to create room. “This project has very difficult conditions. They are exploitative and awkward. We can’t allow it,’’ said President Magufuli.

China is in the process of establishing transport and trade infrastructure across Africa, Asia and Europe under the ambitious ‘Belt and Road Initiative’. The Bagamoyo investment was an important part of this global strategy to strengthen the country’s trade and other interests, drawing on the ancient Silk Road trading route.

Opposition leader Zitto Kabwe said President Magufuli was opposed to the project from the beginning. “The conditions he is saying is just diversionary,” said Mr Kabwe, adding that the project would put Tanzania in the world maritime map.

The Speaker of Parliament, Job Ndugai who has publicly expressed sup­port for the Bagamoyo project and challenged the government to roll it out, yesterday backtracked. “We didn’t have information about the stringent conditions that were attached to the project, as was explained by the President,” he said.

Horrific petrol tanker explosion in Morogoro
More than 80 people have been confirmed dead and 50 others serious injured after a fuel tanker exploded into flames at Msamvu in Morogoro town on August 10. Many of the dead were reportedly motor cyclists who were at the scene collecting the spilled fuel and food vendors who conduct their business along the Dar-Morogoro Highway.

The accident occurred about 200 metres from the Msamvu Bus Station in Morogoro town. “The lorry overturned and spilled fuel over 100 metres along the road,’’ said Morogoro Regional Commissioner, Dr Steven Kebwe.
President John Magufuli said he received the news with deep shock. “I have been saddened to learn such a big number of Tanzanians who lost their lives due to the accident. I am extending my condolences to the families of those, who lost their beloved ones and I wish a speedy recov­ery for those, who were injured in the accident,” he said in a statement.

by Ben Taylor

Limits to President Magufuli’s bankrolling of Air Tanzania?
A recent audit report by the Controller Auditor General for 2017/18 shows that Air Tanzania Limited (ATCL) has more than halved its losses over the period of three years since President Magufuli began efforts to revitalise the airline. The airline has domestic flight schedules to Bukoba, Dodoma, Kilimanjaro, Mtwara, Mbeya, Mwanza, Songea, Tabora and Zanzibar and six regional routes to the Comoros, Uganda, Burundi, Rwanda, Zimbabwe and Zambia. It currently has a fleet of eight planes, including six purchased under President Magufuli.

Speaking in January, President John Magufuli ruled out the possibility that the government will protect ATCL even if it makes losses as in the past.

Inaugurating the latest addition to the ATCL fleet, a second Airbus A220-300, the President told the ATCL management to ensure that the national flag carrier does not become a burden on tax payers. “I will not hesitate to transfer ownership of ATCL aircraft and other assets, let us say to Precision Air in case the ATCL management fails to ensure that the public airline maintains high level of efficiency,” he said.

Nevertheless, the President showed no signs of slowing down in its campaign to revamp the national flag carrier. He promised that the government will purchase two more aircraft, including another Dreamliner and another Airbus by next January. “In the next 10 years I want the country to have at least 100 aircraft,” he said, “in order for ATCL to compete with other foreign airlines on relatively equal footing.”

The ATCL Chief Executive Officer, Mr Ladislaus Matindi said at the same occasion that the ATCL-Five Year Plan which kicked off in 2017, was going on well.

In addition to the expanded fleet, he said the airline has recorded a number of achievements in the past three years. This includes an increase in the number of pilots from 10 to 50 with a plan to recruit 10 more by the end of this year and attaining a workforce of 380.

Under the Medium Plan for the next 20 years, ATCL has a vision to expand cargo services within the country and internationally with capacity to compete with international airlines flying to Far East, Europe and Americas. Canadian High Commissioner to Tanzania, Pamela O’Donnell said that the purchase of such modern aircrafts had signalled renewed cooperation between Canada and Tanzania that has lasted for decades since independence in 1961.

New routes
Air Tanzania launched new international routes to Lusaka in Zambia and Harare in Zimbabwe in February. Further, in April the airline announced that a new route to Johannesburg in South Africa was scheduled to begin operations in July 2019. “We will start advertising the route and reveal fares soon after we start selling tickets,” said the company managing director, Mr Ladislaus Matindi.

Mr Matindi added that preparations for flights outside the African continent – specifically to Mumbai in India and Guanzhou in China – had reached an advanced stage. “The Mumbai and Guangzhou flights will be inaugurated when negotiations with authorities in targeted countries to enable us to land are completed.”

by Ben Taylor

New ship purchased for Lake Victoria
President John Magufuli attended the signing of a contract to build a new ship, which will ply Lake Victoria between Mwanza and Bukoba, Musoma and ports in Kenya and Uganda. The signing took place two weeks before the tragic sinking of the MV Nyerere (see earlier article in this section.)

The new ship, which will be built at the cost of TSh 88.76 bn, will be 90 metres long, 17 metres wide and 10 metres high, and will have a capacity of carrying 1,200 passengers and 400 tonnes of cargo including 20 cars.

The project is to be implemented by two South Korean companies in collaboration with the National Service-economic wing, Suma JKT.

The construction of a new ship comes four and seven years after MV Victoria and MV Butiama respectively suspended operations because of technical issues, which greatly increased transport costs and times around the Lake Zone. It also comes 22 years since the MV Bukoba sank causing close to 1,000 deaths.

Speaking after witnessing the signing of the contract, President Magufuli said the projects were funded domestically. “There is not a single shilling from South Korea. Their ambassador is here to ensure that we get the value of money from the projects,” the President said. He added that citizens’ participation in the projects – through Suma-JKT – “would ensure that part of the money remains in the country.”

The project is scheduled to be completed within a year.

Welcoming the Head of State, the minister for Works, Transport and Communications, Mr Isack Kamwelwe, said they now have a challenge of increasing cargo to neighbouring countries.

“Together with the minister for Finance and Planning Dr Phillip Mpango and Industries, Trade and Investment minister Charles Mwijage, we will meet Kariakoo traders to understand their challenges in realising this endeavour,” he said.

FastJet and ATCL
The revived national airline, Air Tanzania Company Limited (ATCL), has been reinstated in the International Air Transport Association (IATA) Clearing House (ICH) after meeting its obligations. This allows ATCL to resume use of the IATA ticket platform and opens the possibility of flights to Mumbai, India.

The national carrier lost its IATA membership in 2008 due to non­payment of debts, a development that saw the ATCL banned from all international aviation transactions.

Further, in mid-December, ATCL took delivery of another new aircraft, the first of two Airbus A220 aircraft. A sister aircraft is expected in January 2019.

With a range just over 5,000km, the A220 will bring many points in Central and West Africa within range of Dar es Salaam, while giving the carrier a low-risk option to venture into the Middle East or grow frequency on existing domestic and international routes.

This will bring Tanzania’s active fleet to seven aircraft, comprising four propeller-driven Bombardier Q400s, a Boeing 787 Dreamliner and now the two A220s. A further Bombardier Q400 is also expected in 2019.

Meanwhile, the continued re-emergence of ATCL has taken place alongside growing difficulties faced by low-cost rival airline, FastJet.

FastJet Tanzania, which as recently as August had been planning to lease several new aircraft for routes within Tanzania, has since met with regulatory and financial difficulties. In September, Fastjet PLC – then the majority shareholder of FastJet Tanzania – disclosed in filings with the London Stock Exchange (LSE) that it was considering closing down its operations in Tanzania, on account of the “continued losses generated in the country.” The statement showed a $14.6 million net loss on $30.1 million in revenues for the six-month period to June 30, 2018.

Laurence Masha, a former Minister of Home Affairs who was on November 6, 2018 appointed as the first executive chairman of the FastJet Tanzania, told The Citizen newspaper in early December that had he bought 47% of the company shares owned by locals and other 17 owned by FastJet PLC, making him the new majority shareholder.

However, the new owners immediately ran into difficulties with the Tanzania Civil Aviation Authority (TCAA), which seized one of the airline’s two aircraft, citing unpaid debts. As the other aircraft was undergoing repairs, the company was forced to cancel all scheduled flights in December and January while it sought a new aircraft. At the time of writing, there are conflicting reports as to whether TCAA will allow this newly leased aircraft to enter the country and to operate flights.

“Fastjet Tanzania has paid some debts and others were paid by Fastjet PLC. We spent the remaining money to lease the plane and pay regulatory charges. They should now allow me to resume operations to get money for paying the remaining debts,” said Mr Masha.

“We really need the wisdom of the regulators and supportive cooperation from the government because we cannot manage to pay the debts while we are not doing business. I have talked to TCAA and the minister and I’m looking forward to getting their support after the festive season,” he added.

“Fastjet PLC thought the company would get cooperation from the government when it had a local investor but I don’t see it happening. There was a time I did not sleep for five days when I was busy looking for strategic investors to put their money into the company. They always ask if we have this supportive cooperation with the government,” he said.

However, TCAA Director General Hamza Johari told reporters that it was not true that they denied the airline the permit but that the applications were submitted late and were yet to be processed because of Christmas holidays.

He said that the authority received three letters from Fastjet Tanzania on December 24th, including one in which the company requested to bring in the Boeing 737-500 plane from South Africa and another on its business and financial plans.

“We will respond to all the letters in accordance with the law,” he said, adding that “if they really want to invest in the aviation sector, they must be more serious.”

The TCAA boss also denied allegations that it was favouring Air Tanzania Limited Company (ATCL) in order to give the state-owned airline a monopoly over the local market. He said such claims were unfounded as the sector was already competitive.

by Ben Taylor

“Dreamliner” lands with Air Tanzania
A much-anticipated Boeing 787-800 Dreamliner aircraft arrived in Tanzania in July, and moved swiftly into operation on domestic routes for Air Tanzania. It is expected to begin international routes – to Mumbai in India, Bangkok in Thailand and Ghuanzhou in China – from September, once pilots and cabin crew have gained experience with the new aircraft.
The Dreamliner is the fourth and largest plane to be bought by the government since the 2015 election of President Magufuli. Plans are underway to purchase three others to make the total of seven planes aimed at reviving Air Tanzania Company Limited (ATCL) that had only one plane previously with a capacity of carrying 51 passengers. Three further aircraft are to be delivered, including two mid-sized planes later this year and a second Dreamliner in 2020.

At list prices, the new plane is valued at US$225 million. It has a seating capacity of 262 passengers. Three previous planes purchased for use by Air Tanzania were 76-seater Bombardier Q400 planes worth US$32 million each.

The plane is branded with the “Hapa Kazi Tu” slogan that President Magufuli adopted as his main campaign slogan in 2015. Speaking at Julius Nyerere International Airport (JNIA) prior to the arrival of the plane, the President explained why his government had decided to revive the national airline.

“It’s shameful for a country rich in natural resources like Tanzania not to have commercial aircraft of its own. We wanted to do away with this shame,” he said. “Before bringing the Bombardier-Q400,” he noted, “it was very expensive to fly to destinations like Bukoba. One needed at least TSh 1 million as return fare (from Dar) to Bukoba. But, with ATCL’s Bombardier, it now costs a maximum TSh 400,000.”

The President added that a third reason for reviving ATCL is to boost Tanzanian tourism. “We did an analysis and established that countries owning airliners also receive the highest numbers of tourists,” the president stated, citing as examples Morocco, South Africa and Egypt, each with over 10 million tourist arrivals annually. “We’re hopeful that the Boeing 787-8 Dreamliner will boost the number of tourist arrivals in Tanzania,” he stated.

Etihad suspends flights to Tanzania

Etihad Airways – the national airline of the United Arab Emirates – has confirmed suspension of flights between Dar es Salaam in Tanzania and Abu Dhabi. This move, which is part of an ongoing strategic review that involves scrapping unprofitable routes, will come into effect on October 1, 2018. After this date, travellers from Tanzania will be re-routed through Kenya Airways to Nairobi and then connected through Etihad to Abu Dhabi.

The Airline launched its first flights to Tanzania in December 2015, the airline’s third destination in East Africa after Nairobi in Kenya, and Entebbe in Uganda.

by Ben Taylor

New Air Tanzania plane arrives, finally!
A new Bombardier Q400 aircraft has arrived in Tanzania, after extensive legal delays in Canada, from where the 76-seater aircraft was purchased for USD $32 million. The aircraft is the third such plane to arrive in Tanzania under the efforts of President Magufuli to revive the national flag-carrier airline, Air Tanzania. Three further deliveries are scheduled for later this year, including two Bombardier CS300 planes and one Boeing 787-8 Dreamliner.

The new aircraft was initially scheduled to arrive in the country last year, but was seized by a court order requested by the construction firm Stirling Civil Engineering Ltd. Stirling’s claim stems from a 2010 com­pensation ruling by the International Court of Arbitration over a road construction contract that was terminated a number of years back, and which had not been paid by the Tanzanian government.

In August 2017, when the seizure of the plane was first reported by opposition politician Tundu Lissu, this was initially denied by the gov­ernment. A spokesperson later told reporters that the delays resulted from a conflict masterminded by a few unpatriotic Tanzanians, arguing that lawyers who filed a case before seizing the government property had no legal locus standi to do so, but were pushed by a few local politi­cians who wished the country ill.

The government has made no statement on why the situation has now changed and the plane has been released, or whether the money demanded by Stirling Civil Engineering has been paid.

On its arrival, President John Magufuli called for unity and patriotism among Tanzanians. “Elsewhere, people are always united when advanc­ing their countries’ development agenda. We need to put national inter­ests first. We should not get divided because this plane which arrived today is for our own benefit,” he said.

Air Tanzania currently operates between Dar es Salaam and Kilimanjaro, Mwanza, Kigoma, Kagera, Dodoma, Mbeya, Ruvuma, Mtwara, Zanzibar and the Comoros. (The Citizen, Daily News)

President Magufuli urges rapid delivery of rail project
President Magufuli has called on the contractor to ensure timely com­pletion of the Standard Gauge Railway (SGR) project, saying it will benefit the country and its people a lot, as well as help increase govern­ment revenues. He urged the Turkish firm responsible for this section of the project, Yapi Merkezi Insaat VE Sanayi, to do all it can to complete work ahead of schedule, stating that upon completion it will create at least 30,000 direct and about 60,000 indirect employment opportunities.

The President was speaking in Ihumwa, Dodoma Region, at the launch of the second phase of the project to upgrade the Central Railway – build over 100 years ago – to standard gauge, and to electrify the line. This phase will connect Morogoro to Makutupora in Dodoma Region, covering 426 kilometres, part of the overall 1,219km route from Dar es Salaam to Mwanza. The total project is expected to cost TSh 15 trillion.

Further connections are anticipated to Kigali, in neighbouring Rwanda, through a project partly financed by the government of Tanzania from its own sources. This will connect to the Dar-Mwanza line in the town of Isaka, to the south of Mwanza. Attracting Rwandan business to the SGR is thought to be key to the project’s viability, against competition from road freight and the rail route through Kenya and Uganda. Speed – and thus electrification – is seen as a key factor in this regard: Rwanda and Tanzania are targeting passenger speeds of 160kmph and cargo train speeds of 120kmph, compared to 80-110kmph on the diesel-powered Kenya route.
Minister of Works, Transport and Communication, Makame Mbarawa, said the Ministry will cooperate with the contractors in trying to complete the project on time.

The Turkish ambassador to Tanzania, Mr Ali Davutoglu, assured President Magufuli of the Turkish government’s commitment to continued cooperation with Tanzania in implementing this and other development projects. He said the SGR project would act as a catalyst to Tanzania’s efforts to transform itself into a middle-income economy by 2025.

Uber establishes firm foothold in Dar es Salaam
The disruptive taxi firm, Uber, has established a firm presence in Dar es Salaam since its launch in the city in 2016. According to a statement released by the company, there are 53,000 active Uber users in Dar es Salaam, and 1,000 active drivers.

The figures show Tanzania well behind continental leaders, South Africa (around 1 million users), and indeed behind neighbouring Kenya (360,000 users). Nevertheless, the number of users in Dar has rapidly achieved the critical mass that means users can generally rely on the service to find a vehicle for them when needed, and that drivers can depend on a steady stream of income from passengers.

Uber has now innovated further in Tanzania, introducing a new part­nership with the mobile phone company, Tigo. Under the new arrange­ments, Tigo users will be able to use the Uber app on their phones with­out incurring any data charges, and to make payments to Uber drivers using the Tigo Pesa mobile money service. (Daily News)

by Ben Taylor

Arguments flare over Air Tanzania plane seized in Canada A new commercial aircraft, purchased by the government as part of President Magufuli’s efforts to boost the previously-ailing Air Tanzania (ATCL), has been seized in Canada by a construction firm in dispute with the Tanzanian government over a long-standing debt. The aircraft – a Bombardier Q400 – had been expected to arrive in Tanzania in July 2017, but remains in Canada at the time of writing. The Canadian firm, Stirling Civil Engineering Ltd, seized the plane in Canada over a $38 million lawsuit before it could be delivered by Bombardier Inc to the Tanzanian government. The claim stems from a 2010 compensation ruling by the International Court of Arbitration over a terminated contract to construct a road between Bagamoyo and Wazo Hill / Kunduchi.

The government plans to revive ATCL involve the purchase of at least six new aircraft, including one Boeing 787 Dreamliner. The new planes are reported to have been placed under the ownership of the Tanzania Government Flight Agency – a state-owned firm – to avoid possible confiscation of the planes from lawsuits related to Air Tanzania’s multi million-dollar debts from previous suppliers.

The seizure of the aircraft came to light after two opposition MPs, Zitto Kabwe (ACT Wazalendo) and Tundu Lissu (Chadema), asked questions about the late arrival of the new plane. Kabwe raised the matter on social media and then Lissu held a press conference. In response, the then acting director of Information Department

Services, Ms Zamaradi Kawawa, described the “Bombardier fiasco” as “dirty games” by some members of the opposition. “The government is aware that some of the opposition leaders are behind this. They hold malicious intentions towards efforts done by President Magufuli on bringing development in the country, but their days are numbered, their betrayal is intolerable,” she said, accusing them of being unpatriotic.

Lissu asked “who is patriotic between me and the government that didn’t want to tell its people about the court case and subsequent seizure of the plane? Who is sullying the image of the country internationally between me and the government which is failing to adhere to international standards and clear the debt since 2010?”

A few days later, Lissu was arrested and his residence in Dar es Salaam was searched by the police. Two weeks later, in early September, he was shot multiple times by unknown assailants outside his home in Dodoma. He narrowly survived the attack. (See politics section, this issue).

The government of Tanzania has appealed through diplomatic channels to the government of Canada to intervene to ensure the plane’s release and delivery to Tanzania. Further, the government has promised to challenge Stirling Civil Engineering’s claims in court. (The Citizen, Reuters)

Former ATCL chiefs found guilty
Two former senior officials of the same national airline (ATCL) have been found guilty of conspiracy, abuse of office and occasioning loss. Former Managing Director David Mattaka and his Chief Finance Officer Elisaph Ikombe were each sentenced to 21 years imprisonment or fines of TShs 35m each. They are expected to pay the fines. The trial magistrate, Victoria Nongwa, also gave the two convicts a one-month ultimatum to compensate ATCL with 143,442 US dollars (over TShs 320m), representing the loss they had caused.

The court found that while discharging their duties in 2007, the two intentionally abused their positions by inviting tenders to supply ATCL with 26 motor vehicles without approval of tender board, by procuring the motor vehicles from a Dubai-based firm without conducting competitive tendering, and by authorising payments for purchase of the motor vehicles without a formal procurement contract.

Tanzania purchases new radar equipment
The Tanzania Civil Aviation Authority (TCAA), has signed a TShs 61 billion contract with the French firm Thales Air Systems to install a new surveillance radar system. The system will involve installation of new equipment at four airports: Julius Nyerere International Airport (Dar es Salaam), Kilimanjaro International Airport, Songwe Airport in Mbeya and Mwanza Airport.

The Minister of Works, Transport and Communication, Prof Makame Mbarawa, spoke at the signing ceremony, explaining that a shortage of the relevant equipment in Tanzania has meant the eastern triangle portion of the country’s airspace is currently being monitored by Kenya. He noted that this has been denying TCAA up to $1m in fees annually from airlines using that portion of the airspace.

TCAA director general Hamza Johari said the project was part of wider efforts to secure the country’s air space. He added that TCAA would purchase the radars with internally sourced funds, of which 45% would be from the authority’s various sources and the government will provide the remaining 55%. He explained that the French firm won the tender through competitive bidding which involved five bidders.

New railway law
The Tanzanian Parliament has passed a new law – the Railways Act, 2017 – which will, among other things, enable the establishment of a new railway company, the Tanzania Railway Cooperation (TRC). The new company will be responsible for handling all rail matters including transportation services, developing, promoting and managing infrastructure assets in the country. The new law also facilitates the disbandment of Tanzania Railways Limited (TRL) and the Rail Assets Holding Company (RAHCO). “All the contracts and agreements entered by TRL and RAHCO will be accommodated into the new company that means even the debts that the two entities had,” said Minister of Works, Transport and Communication, Prof Mbarawa. He added that the new law will replace the 2002 Railways Act.

Bulldozer goes to work around Ubungo

President Magufuli has directed that the Tanesco headquarters building on Morogoro Road in Ubungo, Dar es Salaam must be demolished as it encroaches on the road reserve. The 10-story building is located within 90m of the centre of the road, in contravention of the Road Reserve Act. On the other side of the road, a boundary wall for the offices of the Ministry of Water also encroaches, and has already been demolished following the President’s instruction.

Potential demolition of the Tanesco building was raised in 2011 while President Magufuli was Ministry of Works. He had then instructed the National Roads Agency (Tanroads) and Tanesco to demolish the building, only to find himself overruled by the then Prime Minister, Mizengo Pinda.

Demolition of the building has become more urgent as the space is required for construction of a new $88m flyover interchange at Ubungo, similar to the interchange already under construction at TAZARA. Around 1,300 houses, public buildings and houses of prayers have been demolished this year by Tanroads to pave the way for the expansion of the Kimara-Kiluvya section of Morogoro Road.