Rostam backs Magufuli on ATCL

Dar es Salaam. Tanzanian tycoon Rostam Aziz has backed the government’s decision to revive Air Tanzania Company Limited (ATCL), saying the national carrier can be run successfully.

In the coming days, the government is expected to increase its fleet of aircraft to six, with the anticipated arrival of a brand new Airbus A220 this month. ATCL seeks to revive its flagship airline Air Tanzania that is fully owned by the State.

Against this backdrop, Mr Aziz, who spoke during an exclusive interview with The Citizen in Dar es Salaam on Saturday said President Magufuli is taking the right direction with his investment plan as the Head of State but also the government is on the right trajectory with the highly ambitious plan in airline business.

“Most airlines that still survive until today are subsidized and state- owned. Airline is a business that should be run by governments because it demands a lot of financial investment,’’ he said.

Mr Aziz, is supporter of the ruling party CCM and former Igunga MP who announced quitting politics in 2011 to concentrate on private business.

His latest comment on the country’s airline business, among other things, was prompted by a question from The Citizen that sought clarification on the state of doing business in Tanzania from a perspective of the billionaire businessman who last month made a surprise visit at State House in Dar es Salaam and held talks with President John Magufuli.

After his meeting with Dr Magufuli on November 13, the former politician told the media outside State House that Tanzania must work to avoid what he termed as ‘distortions’ in doing business if the country seeks to boost economic growth.

During an interview on Saturday, Aziz clarified further on what he exactly meant by ‘distortions” in business, saying, “When I said we need to avoid distortions, I meant creating a level playing field for doing business. This is what the current government is trying to solve now,’’ he explained.

“In a business environment where some pay tax and others, either evade or pay less tax, it means there is no fair competition…In the long run, a few businessmen achieve more at the expense of others. We should try to avoid this, and I thank the president for emphasizing on it,’’ he noted further. Mr Aziz said that it was time for the country to grow its economy and raise its revenues to be able to finance big projects, such as reviving the Airline and financing the construction of the Sh6.5 trillion hydro-power project at Stiegler’s Gorge, situated in Rufiji Basin, Coast Region. “With the airline, the truth is, it may not make profit and that’s understandable. But, believe me, the airline has wider economic benefits for the nation, even as it may continue making losses…it will help boost tourism, the cost of flying will go down, it will create jobs and increase other businesses associated with it,’’ he explained.

“What the country stands to gain from running the airline is far bigger than the profits that the airline itself is supposed to generate,’’ he insisted. “Private airlines are not what the country should be banking on...they are not reliable…,’’ he said.

“Why should it not succeed?” queried Mr Aziz when The Citizen questioned the sustainability of running the airline.

Investing in big projects

Mr Aziz was categorical that when it comes to investing in big projects, it was a matter of putting the right argument on the table. He singled out the Stigler’s Gorge project as an example.

“The project cannot stall if the government has the right argument…in foreign countries, a number of power projects have sailed through despite strong opposition from other stakeholders…the success came because there was a strong argument on the table. This is what I see with the Stigler’s Gorge Project which has been opposed by environmentalists,’’ he said.

He was critical of the business index reports released by international agencies which show that Tanzania was backsliding in the ease of doing business index.

“Those should have interviewed the right business people…Tanzania is open for investment...those who are saying Tanzania is not business friendly, that’s nonsense…let’s strive to woo investors to come to this country and do business, the media too, has a role to play in this…” said Mr Aziz.