Dear Prime Minister – Conti Asks Tanzania’s Govt. to Aid GTEA
Continental is reported to have requested the government of Tanzania take action to aid the moribund General Tyre East Africa (GTEA), in which the German tyre major holds a 26 per cent share. Furthermore, Conti is said to have informed Tanzania’s Prime Minister, Mr. Mizengo Pinda, that without assistance a complete closure of GTEA may be required by March 31, 2008.
An article that appeared in East African Business Week on March 10 indicates that, according to “reliable information”, Continental wrote to Mr. Pinda in mid-February, asking his government to honour the commitments agreed upon nine months earlier. The country’s sole tyre manufacturer suspended its 400 employees without pay towards the end of 2007, and is said to need at least US$10 million before production can resume. However, Mr. Said Nguba, press secretary to Mr. Pinda, told the business newspaper in early March that he had no knowledge of the letter. “I’m not in office and I’ve yet come across such information,” stated Nguba.