Government Calls for Private Sector Investment in Aviation Industry as Demand Surges

Arusha. The government has urged the private sector to seize emerging investment opportunities in the aviation industry, citing rapid market growth and rising demand that could significantly expand the sector’s contribution to the national economy.

The call was made yesterday in Arusha by the Deputy Minister for Transport, Mr David Kihenzile, during the opening of the 18th Joint Transport Sector Review (JTSR) meeting, which is currently going on.

He said the aviation sector is witnessing strong commercial prospects driven by a fast-growing market and increasing demand for air transport, particularly in trade, tourism and social services.

To sustain this momentum, Mr Kihenzile said the government is improving the investment climate by strengthening legal and regulatory frameworks to enable private operators to function more efficiently.

"Given the continued strengthening of the market, the government is enhancing the investment environment, including regulations and laws, to facilitate the operation of private aircraft," he said.

"The private sector has a major opportunity at this time, and as government we are reviewing and removing legal and regulatory bottlenecks that may hinder the effective implementation of your activities."

On infrastructure development, the deputy minister noted that the government has embarked on the construction and upgrading of airports in regions with high demand, including Mbeya, Rukwa, Katavi, Kigoma, Mtwara and Lindi.

He said additional projects are under way in Shinyanga, Simiyu, Musoma and Njombe, as well as within the Serengeti National Park, to support the tourism sector.

According to Mr Kihenzile, the government plans to add eight new aircraft by 2030, a move expected to ensure optimal utilisation of the expanded facilities and increase the number of operational airports from the current 16.

"These are airports that should also be utilised by the private sector so that government investment yields the intended economic returns and benefits," he said.

He further urged experts and stakeholders attending the forum to engage in in-depth discussions on the timely implementation of government resolutions to enhance the contribution of the transport sector, particularly aviation, to national economic growth.

The three-day meeting, running from December 15 to 17, 2025, is being held under the theme "An integrated transport system as the foundation for economic transformation towards Vision 2050."

Its objective is to assess the implementation of policies, plans and projects in the transport sector.

The forum has brought together key stakeholders, including government officials, development partners, public and private institutions and civil society organisations.

Speaking separately, the Permanent Secretary in the Ministry of Transport, Prof Godius Kahyarara, said the JTSR is held annually as a platform for joint planning and for addressing implementation challenges in transport projects, particularly in roads, railways, ports and aviation.

He said participants review progress in infrastructure development while also examining constraints that delay or undermine timely and efficient project delivery.

Prof Kahyarara added that the transport sector currently contributes more than 10 per cent of national employment, engages about three million workers and generates revenues exceeding $2.66 billion annually.