Zanzibar foreign exchange earnings fall by 55%

Zanzibar foreign exchange earnings fall by 55%

Tanzania, Dar es Salaam: 

Zanzibar’s foreign earnings plummeted by 55 percent after price fluctuations and climate changes affected production and trading of cloves and seaweed which are key cash crops in the Island.

The Bank of Tanzania (BoT) data shows that the isles’ value of exported goods dropped to $19.4 million in the quarter ending September 2022, from $43.3 million earned in the corresponding quarter in 2021.

The amount of clove exports decreased by 62.3 percent to $14.94 million in September 2022 from $39.62 million, according to the BoT report.

The slowdown of earnings was a result of shrinking volume of the crop to 1,800 tonnes from 5,300 tonnes exported in 2021.

“The decline is related to the cyclical nature of the crop,” the central bank stated.

The clove price fluctuated to reach $10,963.3 per tonne in June this year before dropping to $8,184.2 per tonne in September this year.

As for the seaweed, the crop earnings had dropped by 11.7 percent by September this year to $1.09 million from $1.23 million the preceding year.

The crop volume during the period was also low by 32.1 percent as 2,100 tonnes were exported against 3,100 tonnes of 2021.

The impacts of ongoing unfavourable weather conditions are among the reasons that have affected seaweed production this year, according to the BoT.

From January to September 2022, Zanzibar produced 8,019 tonnes of seaweed, a slight decrease from 8,335.2 tonnes that were produced during the same period in 2021.

Speaking to The Citizen, public relations officer for Zanzibar State Trading Corporation (ZSTC), Ali Mohammed, said like any other agricultural produces, cloves and seaweed were vulnerable to weather changes in 2022, affecting their production levels.

“The crops yield was down compared to preceding recent years.

“There were also issues of market prices which are determined by the global markets and competitiveness from other producing countries like Madagascar,” he said. 

Zanzibar’s large export destination for its spices is Asia to countries like India.

“In 2023, we plan to sustain quality and production levels so that we can boost our exports and remain competitive on the global level,” said Mr Mohammed.

On the other hand, Zanzibar’s receipts from the services sector had improved significantly as tourism activities recovered.

The BoT said during the review period, service receipts rose by 49.5 percent to $63.6 million compared with a similar quarter in 2021.

Tourist arrivals rose to 165,231 from 89,956 in the similar quarter in 2021 with tourists from Europe dominating at 64.3 percent, followed by Africa at 13.1 percent.

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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Tanzania Foreign Investment News
Chief Editor

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).

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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