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Vol 3 (AAC) No 9

Published 1st July 2010


Angola

Choose your poison

The shadowy joint venture between Angola's state-owned oil company and the nebulous China International Fund has reached a new stumbling block in its three-year-old pursuit of a major stake in Tanzania's national airline. Infrastructure Minister Shukuru Kawambwa announced on 29 June that negotiations with China Sonangol had reached a stalemate over Air Tanzania Corporation Limited's (ATCL) debt obligations and that the government would have to look elsewhere. Yet sources at the talks tell Africa-Asia Confidential that the two sides are actually very close to signing a deal and that Kawambwa's statement was simply a final show of dissatisfaction. Formed after the breakup of the East African Community in 1977, Air Tanzania has struggled ever since. Its performance is far behind that of Tanzania's privately-owned Precision Air, which has teamed up with Kenya Airways in a code-sharing deal.

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