South African Airways has offered to pay $20m (�12.8m) for a 49% stake in Air Tanzania.

If the bid is accepted, it will be the South African airline's first acquisition outside its home market.

"SAA intends to establish and develop a strong East African hub based on a Tanzanian branded and network carrier," said a spokesman for the group.

SAA emerged as the only bidder after Kenya Airways said it would rather concentrate its efforts on establishing a regional East African airline.

Tanzania, one of the world's poorest countries, is privatising up to 75% of its airline in order to meet obligations to the World Bank and International Monetary Fund.

Small-scale operation

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

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

SAA is Africa's biggest carrier and is in the process of acquiring 41 Airbus planes.

It has recently introduced new routes to Ethiopia and Senegal.

There is no immediate indication of how it plans to finance the purchase if its offer is accepted.