Dar es Salaam. A new venture spearheaded by a consortium of American investors, is planning to seek local funding through capital markets to build a five-star hotel near the Serengeti National Park.
The hotel will be built at Robanda Village, adjacent to the Fort Ikoma Gate of the iconic Serengeti, according to a statement issued by the company named Maendeleo Hospitality Ventures (MHV).
The company said it is now preparing to raise the funding through an initial public offering (IPO) which will have to go through regulatory procedures.
“Our vision is to redefine hospitality in Tanzania through luxury hotels that celebrate our cultural heritage and stunning landscapes. The Serengeti, known for its extraordinary wildlife and the iconic great migration, marks the perfect launch pad for our journey,” said the chairman of MHV, Mr Rishen Patel.
The firm said it’s now engaging Core Securities Limited – a licensed member of the Dar es Salaam Stock Exchange – to guide it for the IPO.
The plan is to list 31 percent of shares specifically for Tanzanian investors, with three percent allocated to local communities and an additional two percent for local staff, according to the company statement.
“The timing is perfect for launching a public hospitality company,” Mr Patel said.
“We are ready to meet the growing demand for high-quality accommodations that uphold international standards. Our flagship hotel in the Serengeti is just the beginning, with future projects planned for Zanzibar, Ngorongoro, and Kilimanjaro, aimed at attracting discerning travellers from around the globe,” he added.
Core Securities Ltd chief executive officer, Mr George Fumbuka, confirmed the company’s role in facilitating the IPO for MHV.
He announced that the company is in advanced discussions to establish an advisory team to navigate the necessary regulatory approvals, aiming for the IPO launch within the next month.
The ambitious timeline aligns with the MHV’s goal to inaugurate its luxury hotel by July 2025.
“We are proud to be involved in such a remarkable project, backed by the investor’s international credentials and business expertise. We congratulate MHV for making the right decision, as they are actively empowering a broad segment of Tanzanians through widespread ownership of shares on the Dar es Salaam Stock Exchange,” said Mr Fumbuka.
Serengeti is one of Tanzania’s most visited destinations in northern Tanzania. The park is renowned as the arena for the world’s greatest mammal migration.
The new hotel seeks to not only bolster Tanzania’s reputation as a top-tier travel destination but also stimulate the local economy.
Preliminary statistics for August 2024 indicate an ambitious uptick to over two million international visitors to Tanzania and about $3.5 billion in economic contributions.
The trend underscores effective governmental initiatives designed to improve infrastructure and promote sustainable tourism practices.
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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
