QUESTION: Zanzibar is currently executing its blue economy drive, how does your organization exploit emerging opportunities to help grow the economy?
ANSWER: The blue economy has many things and one of them is tourism. So, our insurance firm is well prepared to ensure hotels are covered to protect guests and owners in case of an uncertainty. By compensating them, it will enable the economy to regain and grow, increase number of tourists while locals would retain their jobs.
Recently, we launched medical evacuation insurance targeting tourists who mostly prefer beaches that are on the outskirts of the city where roads are yet to be fully developed.
With such a service, if a tourist develops a health emergency, a helicopter will pick them. This increases trust in the local tourism market, this is one of our contributions to the blue economy drive.
Also, we are in talks with the government to ensure that when a tourist arrives in the country, they get a travel insurance from a local firm. Once they pay the premiums, the money remains local and that adds the amount of foreign exchange that will remain here.
On the same note, Zanzibar has recently shown signs of oil and gas in the deep-sea, which is also another blue economy opportunity. We are now planning to build capacity of some of our employees so that they can be ready to provide insurance for those big projects when the time is ripe.
Personally, I recently went to Uganda to learn how they participate in the oil pipeline from Hoima to Tanga. I learnt of challenges they faced and how they tackle them in attempt to ensure some premiums remain in the country instead of going overseas.
Q: How do you tap the opportunity in Islamic Insurance (Takaful) which Tanzania Insurance Regulatory Authority (Tira) recently issued guidelines for its rollout?
Takaful has been positively received in Zanzibar and people need it. Basically, ZIC was the first to apply for the establishment of Takaful which is based on Islamic principles. So, when the guidelines came out, it was very great news. ZIC plans to establish a subsidiary company that will be dedicated to handle Takaful only.
We have already secured a consultant who will guide us on how to provide the insurance. We are also in negotiations with the government so that it can provide a guarantee of Sh2.5 billion which will be the initial capital of the subsidiary company.
Q: What was ZIC’s performance in the last three years?
Our performance has continued to accelerate year after year despite internal challenges and the presence of Covid-19. In that period, we were able to increase premiums from Sh19 billion to Sh20 billion.
Q: What are the strategies to make the organization more profitable?
After being appointed in June 2021, one of my responsibilities in reviving the organization to increase profits was to change the working culture and guide staff to do away with the ‘doing business as usual’ syndrome, instead of responding to the market needs.
Another thing was to change the communication system and strengthen the digital systems which have helped reduce operating costs and fraud loopholes because most of the systems were analogue.
I also established a performance management system that measures staff performance every year.
All the changes have helped to increase the performance we plan to increase premiums from Sh20 billion to more than Sh40 billion by the end of the year.
Currently, ZIC is run as a department instead of being a corporate entity. You know, private companies have quick decisions and go with the speed of the market. Right now, we are in negotiations with the government to allow ZIC to do modern business.
The government should give us a target and we meet at the Annual General Meeting. By doing so, it will therefore help many decisions such as purchases to be made quickly.
We are also looking at the possibility of bringing young people from the private sector with digital skills to make the business alive and respond to foreign customers who want quick answers.
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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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