South African Airways has emerged as the only bidder for a stake in Air Tanzania (ATC) after Kenya Airways quit the privatisation saying an investment would be bad for shareholders.

Kenya Airways, one of three remaining contenders, said it would rather invest in establishing a regional East African airline.

"The decision was arrived at after careful evaluation of the potential impact of the acquisition on shareholder value," it added.

Interested bidders had until Thursday to submit offers for a 49% stake in the loss making airline.

Tanzania, one of the world's poorest countries, is privatising up to 75% of ATC as part of its obligations to the World Bank and International Monetary Fund.

Small-scale operation

The other bidder, South Africa's Nationwide, did not submit an offer.

Established in 1977, ATC owns one plane and leases two others.

Based in Dar-es-Salaam, ATC serves the East African capitals of Nairobi, Entebbe and Kigali, and sporadically flies to a handful of Central and Southern African capitals.