Zanzibar’s surging debt is unsustainable, says ACT

Zanzibar’s surging debt is unsustainable, says ACT

Unguja. The opposition party, ACT Wazalendo, has expressed grave concerns over Zanzibar’s escalating public debt, deeming it unsustainable and warning of its potential to ensnare citizens in a perpetual cycle of poverty.

Addressing a public rally at the Kilimahewa Grounds in Unguja, on Sunday June 9 the party’s Vice Chairman, Ismail Jussa Ladhu, voiced bewilderment at the government’s accumulation of debt totaling Sh1.1 trillion within just three years of the current administration.

Jussa highlighted the staggering increase in foreign debt, which surged from Sh155.8 billion in 2020 to the current amount, representing a 609.3 percent rise, with little tangible progress to show for it.

He specifically criticised the construction of markets in Mwanakwerekwe, Jumbi, and Chuini, noting that although these markets were intended to be under local government administration, they have been usurped by the central government.

According to him, the original cost estimates for these projects have ballooned significantly beyond the initial projections provided by the contractor.

“The Chuini market was initially budgeted at Sh31 billion, Mwanakwerekwe at Sh29 billion, and Jumbi at Sh13 billion. However, these costs have since escalated from a total of Sh75 billion to Sh102 billion,” remarked Jussa.

He further underscored discrepancies in the costs of construction materials, citing inflated prices compared to prevailing market rates.

For instance, while cement typically sells for Sh17,000 per bag in ordinary shops, the same product is priced at Sh23,000 per bag in these projects. Similarly, iron rods and bars, which typically cost Sh2.5 million per tonne in common hardware shops, are quoted at Sh3.2 million per tonne for these projects.

He was, however, full of praise for the Union President, Samia Suluhu Hassan, whom he said cares a lot for Zanzibar, citing a recent Sh427 billion loan to construct a new referral hospital at Mbinguni, Unguja, which was acquired during the president’s recent visit to South Korea.

Additionally, the party reiterated its readiness to assume governance in 2025, citing the departure of CCM from the principles espoused in the ASP manifesto established by the late Abeid Aman Karume.

Jussa emphasised the foundational importance of freedom, as articulated by Karume in the 1961 ASP election manifesto, which heralded the end of colonial and foreign rule.

Quoting provisions of the Zanzibar constitution, he lamented the failure of the current government to uphold the principles outlined therein, particularly regarding accountability to the public.

Despite the challenges, Jussa affirmed the party’s commitment to fulfilling its constitutional duties and holding the government accountable.

He asserted that the people of Zanzibar are now more discerning and steadfast in rejecting deception.

Regarding CCM’s deviation from ASP principles, Jussa underscored the loss of faith among citizens and emphasised Karume’s legacy of rapid development without incurring massive debts for personal gain.

Mansour Yussuf Himid, a member of the party’s Central Committee, echoed sentiments regarding the importance of equality and unity, emphasising the vision articulated by Maalim Seif against social divisions.

Himid criticised what he called CCM’s divisive tactics and highlighted the imperative of strong leadership principles to foster unity and progress.

Jussa and Himid urged for a return to the values of solidarity and fairness championed by Zanzibar’s elders, rejecting divisive politics and advocating for a future characterised by love, solidarity, and equitable opportunities for all citizens.

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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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