Targeting to stabilise sugar supply and control prices, Tanzania has imposed regulations on sugar production, importation and distribution within its borders.
Parliament has passed a bill containing amendments to the Sugar Industry Act that gave the National Food Reserve Agency (NFRA) exclusive mandate to import, store and distribute sugar for domestic consumption.
Finance Minister Mwigulu Nchemba said that the newly amended Sugar Act would help to control arbitrary shortages, hoarding of the commodity and inflating of prices.
“This amendment will monitor price stabilisation. It is the government’s responsibility to intervene during market failures,” Mr Nchemba said.
The newly amended Sugar Act gives the Sugar Board of Tanzania (SBT) discretion in issuing import licences. SBT will not issue licences unless it is satisfied that the local production is below the required level.
Read: Sugar price cap brews a storm in Tanzania
The new amendments require local sugar producers to declare their production costs then submit any relevant information that may be required by the SBT at the beginning of every production season.
Domestic manufacturers are also required to declare and publish in a widely circulated Tanzanian newspaper the names of their distributors in every region at the beginning of every production season.
The Act now directs issuance of provisional licences and registration of sugar manufacturers, small-scale sugar plant operators and industrial consumers through the SBT.
Tanzania Sugar Producers Association (TSPA) said in a statement on Monday that it is expected to raise production to 663,000 tonnes by 2026 to cater to the local demand.
TSPA Chairman Ami Mpungwe said that sugar production had decreased from 144,000 tonnes in 2017 to 30,000 in 2023, causing acute shortages of the commodity.
Mr Mpungwe said that seven sugar factories were issued with permits to import sugar in 2023 to fill the supply gap and push reduction of retail prices.
Read: Samia’s new food export rules to protect local market
The government has been spending about $150 million to import sugar from other countries to fill the deficit.
Shortages have pushed retail prices from Tsh2,800 ($1.05) to Tsh4,000 ($1.5) per kilo at in shops across the country.
Legal and Human Rights Centre (LHRC) director for Advocacy and Reforms Fulgence Massawe asked the government to attract more competitive sugar producers to increase production of sugar.
He said that the government should come up with better policies for land acquisition and ownership, friendly immigration laws for investors with friendly and prompt registration and provision of business permits within a day for foreign investors.
“Allowing the importation of sugar has significant impact on the balance of trade and use of forex. The government should promote domestic production and investment in sugar production,”, Mr Massawe 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
