Dar es Salaam. The National Social Security Fund (NSSF) has injected $11 million (about Sh25.5 billion) into the Eastern and Southern African Trade and Development Bank (TDB).
Such an investment aims at expanding the bank’s portfolio and increase the access of funds to its members which will enable them to buy 800 shares, an equivalent of 0.64 percent.
The amount of shares, will therefore give the social security fund an assurance of a 25 percent in dividend annually.
“The investment makes the bank with a large capital in member countries. NSSF will also increase its income and the ability to service members’ benefits on time,” said the Prime Minister’s Office (Policy, Parliament, Labour, Employment, Youth and the Disabled) director of social security Festo Fute.
He made the remarks in Dar es Salaam yesterday during the share certificate handover ceremony, where he commended the fund for its decision that would enable it to benefit from stakeholders, who are also members of the bank in 20 countries.
According to him, the government was confident that the capital will help in strengthening investment.
He said the purchase of 800 shares was a huge capital investment that allowed the bank’s board to pay a 25 percent dividend annually, saying the income will significantly help in timely paying benefits to the fund’s beneficiaries.
According to him, this was an opportunity for other security funds to look at their investment capacity and tap the opportunity since they were encouraged by the government to invest in profitable investments.
NSSF director general Masha Mshomba said Tanzania has invested in TDB with 6.03 percent of shares, ranking it at ‘grade A,’ noting, however, that the fund has financed eight development projects valued at $580 million (about Sh1.3 trillion).
“This investment is expected to increase our income…through the annual dividend and the increase in the value of shares. I thank the government for further opening up borders, and allowing us to invest in regional member states,” he said.
According to him, the investment will increase the scope of opportunities and the determination existing in the region. It will also promote resilience of funds and increase liquidity as well as timely payment of members’ benefits.
For his part, TDB group president and chief executive officer Admassu Tadesse said “Tanzania’s NSSF has become the second new institution to invest with the bank, joining a community of shareholders, over and above other equity capital investment from existing shareholders.”
Alongside the sovereign shareholders such as Tanzania, the continued confidence of institutional investors in ability to deliver on mandate is a strong driving force behind the concerted efforts for sustainable development across the region, he said.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
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