Chairman Al Hayat Development and Investment Company, Sheikh SalimAl Harthy, has revealed that the Omani consortium will soon inject a Sh 160 billion ($100 million) into Tanzania’s national carrier, Air Tanzania Company Limited (ATCL).
“We (Omani Consortium) intend to sign an agreement with Air Tanzania to invest 100 million dollars and lead a consortium of other investors that we have close relations with,” Sheikh Harthy said in a statement.
The funds are intended to revive the ailing airline.
While a Memorandum of Understanding (MoU) will be signed between the two partners by the end of next week; Sheikh Harthy revealed that the plan is to build an airline training centre, good offices for the ATCL, buy planes and engage in other development activities which they plan to start within six to ten months this year.
The Omani Consortium noted that Tanzania is the home to some of the World’s most attractive tourist destinations. It affirmed that in recent years there has been an increase in the number of Omani visitors travelling to Tanzania and this has been catalyzed by the resumption of direct flights to Tanzania by Oman Air.
“This has been a building factor in consolidating trade and cultural ties between the two countries.”
“Tanzania, the largest of the East African nations with geography as varied as in its spectacular, also holds out promising prospects for investment in its tourism sector,” it noted.
Meanwhile, ATCL Acting Chief Executive Officer, Captain Milton Lazaro, described the development as good news that is likely to see the airline “stand on its feet once again.”
He revealed that Tanzanian president, Jakaya Kikwete has already outlined the areas that need investment and with such money, they were ready to expand the company.
Lazaro posited that the MoU would elaborate the extent of investment and in which areas the money would go. “That is an amount of money which can change the company. We believe with this, we will be back on our feet,” he said.
President Kikwete had visited Oman last October following an invitation of His Majesty Sultan Qaboos where they exchanged views on how to strengthen further bilateral co-operation in business, education, culture and many other areas.
