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Saturday, 13 September 2008

Gearing up for 2010....

As Zambian Airways continue to struggle with its small debt, Mozambique 's Linhas Aéreas de Moçambique (LAM) plans to invest U$$100 million in the next three years as part of its effort to renew the fleet and boost operations ahead of 2010. LAM is 80 % state-owned with the remaining 20% in the hands of its employees operating scheduled services in southern Africa and one inter-continental flight to Lisbon, Portugal.

In another aviation development, the Malawian government plans to sell 49 % of the national airline to South Africa's Comair (A British Airways franchise). The move is designed to bolster the financial backbone of the struggling Air Malawi, and also reduce the government's financial burden.


  1. Also their visa fees are very low, encouraging tourism to Mozambique and bringing more business to their airline.

  2. Indeed.
    Zambia's aviation policy is not well integrated with other sectors. Until someone sits down and writes a proper Aviation White Paper, contradictions will remain.

    But yeah, back to Moza...I have heard about the liberalisation they plan for 2009 with regards to their airspace...but the detail is lacking

    I think they plan to grant more fifth freedom rights...which may bolster their ability to act as regional transport hub (this is their strategic goal)

  3. The Mozambican economy seems to be doing pretty well. I know very little about the politics, but it seems that some people have some good ideas in that country, from what I have read here. I congratulate them on that.

    Yea, I know, the feeling is not exactly the same when you are not from the region....

  4. Wasn't there some tit for tat thing going on with visa fees, when UK raised their fees for Zambians, Zambia retaliated by raising their fees as well, I remember it used to be very low once.

    Ya, Mozambique is very friendly to investors, although I heard some time ago that corruption was a problem, don't know how much of a problem it is now.

    Zambia would be a better regional transport hub if it had competitive jet fuel prices.

  5. A timely comment..because I have just put the Doing Business report 2009...

    Moza yes is friendly...but Zambia is more friendly...

    The difference between Moza and Zambia is the sectoral emphasis....

    Moza values Energy and Transport...and the rest are secondary...its doing everything to develop these sectors....and has entered to into major partnerships...

    Basically its like we have discussed in the past...if you conclude the binding constraints are transport costs then you gotta do all you can to address that...that Zambia has not figured a coherent transport hub policy is worrying...(though Banda has promised us one)...

    Angola is also following the Moza way....

  6. Yes Zambia did increase it visa fees for UK tourists and rumour is that this is a result of the UK doing the same. Germans pay much less. The UK increased its rates because it was deemed (rightly or wrongly) that too many people from certain countries (not just Zambia) were arriving on “cheap” tourist visas and then “overstaying their welcome”, never to be seen again. The increase in UK visa entry fees was one of the many tools introduced to make it harder for people from countries affected to visit the UK.

    Zambia retaliated in what seems to be fit of pique and the tourist industry is worried that the increased fees will drive tourists to other destinations. Whether or not the Zambian Government has shot itself in the foot remains to be seen as overall, the cost of the visa today is de minimis when included within the total costs of a holiday or business enterprise.

  7. It would be good to see Zambia from the eye of a tourist. The large airfares should be offset by other lower costs such as lower visa fees and lower local accomodation/transportation costs. Tourism is the world's largest employer and industry. More tourism means more business and employment for Zambians.

  8. For each dollar drop in travel costs, I predict you will see more tourists visiting Zambia.

  9. The tourism council paper suggests that increasing government revenue from tourists could be one of the reasons for increased visa fees. If so, I think this is a short sighted approach and disregards the benefits of increased tourist volume for Zambian businesses and the government (more income means more income tax). Also if things settle down in Zimbabwe, will they recapture more of their tourism business from Zambia (especially Victoria Falls) because of their lower visa fees?

  10. Finally, somebody seems to be listening.

  11. lol!

    These guys are funny....

    So 8 months ago demand was its elastic!

    Anyway, hope this is RB's doing...


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