in Business & Finance

Harare open to all forms of investment in Air Zimbabwe

Posted 25 January 2018 · Add Comment

The Zimbabwean government is open to all forms of partnership with Air Zimbabwe and is even prepared to waive a cap on 49% foreign ownership to entice investors to the ailing state-owned carrier, reports ch-aviation.

Since coming to power in November's de-facto military coup, President Emmerson Mnangagwa has sought to ease pressure on the national fiscus through, among other measures, the restructuring and privatization of underperforming and lossmaking parastatals. In a bid to lure more foreign investment into Zimbabwe, Minister of Finance Patrick Chinamasa said in his budgetary speech in December last year that the country will scrap its highly contentious indigenization policy which had curbed foreign participation in certain "reserved" sectors of the economy.

Minister for Transport and Infrastructural Development, Joram Gumbo, said the extent to which government is willing to divest equity in Air Zimbabwe will depend on the proposals put forward.

"We are open to all possibilities and all forms of partnership," he said. "But we will consider each on a case-by-case basis."

Among the options include the possible spinning off of Air Zimbabwe Technical Operations which oversees the carrier's MRO requirements and which operates two substantial hangars at Harare Int'l.

Although Gumbo confirmed that thus far, three serious bids have been tendered for the airline, he declined to name who they are. He also declined to comment on whether government had indeed committed itself to absorbing Air Zimbabwe's debt, estimated to stand at USD300 million. The resolution of the overhang has been cited as a significant stumbling block to any potential investment. 

In December, Gumbo told the local press that Air Zimbabwe was currently running at a monthly loss of USD2 million.

* required field

Post a comment

Other Stories
Advertisement
Latest News

First landing on an unpaved Runway for the PC-24

The PC-24 has made its first landing on an unpaved runway.

Turkish Airlines adds Moroni in Comoros to its network

Turkish Airlines added Moroni - the biggest city and the capital of Comoros Union to its network on 18 June 2018.

ZAF remembers the Spartans

The Zambian Air Force (ZAF) will substantially improve its transport capabilities with the arrival of two Leonardo C-27J Spartan tactical airlift aircraft.

Sudan's glimmer of hope

For a decade, Sudan Airways has struggled to maintain services in the face of US sanctions against the African nation. Those sanctions have now been eased, but the airline still faces problems, as deputy general manager, Yasir Timo,

Aero South Africa set to go

Messe Friedrichshafen, the global show for general aviation, has set its sights on a new destination....South Africa.

Boeing and FedEx express announce order for 24 medium and large freighters

Boeing and FedEx Express today announced a new order for 12 767 Freighters and 12 777 Freighters as the world's largest air cargo carrier continues to invest in the industry's most capable freighters to better serve its customers.

Routes African SK1505180718
See us at
AAD2018 BTGroundHandling BT2205130918AirCargoAFA_BT220318210219