7 Keys to Unlock Zanzibar’s Destiny: To Be a Global Hub for Technology, Innovation, and Business

Zanzibar is poised for unimaginable wealth, health, and prosperity for all Zanzibaris, which will catalyze the same for Tanzania, East Africa, and beyond. Zanzibar is destined to become a global hub for technology, innovation, and business. However, destiny is not a given—it must be earned. Here it is briefly explained why the writer is so optimistic about Zanzibar’s future, and, more importantly, the seven keys to unlocking its destiny.

Why Destiny?

Zanzibar’s destiny is structurally intertwined with its geography, history, and demographics. The axiom of “location, location, location” for a successful business also applies to the hypercompetition of nation-states jockeying to be global economic leaders. Zanzibar’s unique location at the intersection of the Indian Ocean trade route, while also coupling Africa’s interior lands to the Middle East, India, and China, has created flourishing commerce and cultures for centuries. These deep economic ties and melting pot of diversity are now playing out on the global stage. Zanzibar advantageously sits at the intersection of major trade and economic communities such as the EAC, SADC, COMESA, and AU. More broadly, Zanzibar and Tanzania are well positioned to benefit from strategic relations with both the West and the East.

Zanzibar’s physical size and population are in the “Goldilocks” (“just right”) zone: not too big to be able to enact bold changes and not too small for innovation to thrive. Zanzibar’s inherent political and economic relationship with mainland Tanzania, one of the world’s fastest-growing economies and population centers and future global superpower, is a tremendous advantage. Dar es Salaam, just 70 km from Stone Town, is projected to be in the top‑10 largest megacities in the world by 2050.

Zanzibar’s indelibly unique geographic location, cultural diversity, global economic ties, and built‑in demographics are essential ingredients for thriving business innovation and economic growth. I believe that no other nation-state can claim such inherent advantages. Now, layer in a bold strategy for digital transformation—which the Revolutionary Government of Zanzibar and United Republic of Tanzania Presidents and leaders are actively promoting—and that growth will boom and lead to unimaginable prosperity.

The 7 Keys

Mindset

To shift from the “unimaginable” to the “imaginable,” it is necessary to radically change your mindset about the new realities that humanity is experiencing during this epoch of digital transformation.

An exponential mindset empowers people with the knowledge that any technology that is digital and information-based improves at exponential rates—meaning it accelerates year to year. This is very difficult for us humans to understand because we are so accustomed to thinking linearly—meaning slow, incremental change. Exponential growth is underpinned by what is commonly known as Moore’s Law.

These fundamental laws are based on empirical data that tracks the prices and performance of computing power over many decades and extrapolates that information to any technology that is digital and information based. Performance and form-factor optimization effectively double year to year. Prices of digital technology effectively become cheaper and cheaper, ultimately trending to zero. This applies to any digital technology such as artificial intelligence (AI), biotechnology, advanced manufacturing, robotics, drones, fintech, and virtual reality.

A glaring example of disruptive exponentials is the explosive growth of generative AI such as ChatGPT. ChatGPT emerged not even two years ago and puts AI and the power of writing, image creation, graphic design, music composition, computer coding, a personal assistant, and seemingly infinite other functions directly into the hands of anyone, anywhere if they have a smartphone and internet … for free. Groundbreaking technologies can spread instantly around the world. It took ChatGPT only 2 months to get its first 100 million users. To do the same, it took the Internet 80 months and WhatsApp 40 months.

The second is called an abundance mindset. Peter Diamandis, the author of Abundance: The Future is Better Than You Think, examines how exponential technologies can solve humanity’s biggest challenges such as health, energy, food, water, education, etc. Because exponential technologies are a resource-liberating force, they make previously scarce resources abundant. Entirely new solutions and business models based on exponential technologies are emerging to solve daunting challenges and create new opportunities for businesses, entrepreneurs, investors, and governments. Humanity’s legacy economic, political, and social systems that have developed over decades and centuries are being completely redesigned during our generation.

Whether you are a business leader, entrepreneur, investor, or a government, to be a part of this digital revolution and thrive, rather than be left behind, it is imperative to shift your perspective toward what is empirically possible with exponential and abundance mindsets.

Bold and Unifying Vision

With all these changes happening so fast, it is challenging for businesses and entrepreneurs to keep focus and make these changes work for them. There needs to be a bold and unifying vision. This applies equally to nation-states that aim to be global economic hubs. Leaders must be coached on developing a Massive Transformative Purpose (MTP). An MTP is a statement of a grand vision that specifically and strategically describes the purpose of the organization.

Google’s MTP, for example, was “to organize the world’s information.” The value of an MTP is that it streamlines strategies, products, investments, and policies toward that overarching goal. It communicates compellingly what that vision is in a manner that will attract partnerships and collaborations.

For Zanzibar, an MTP should be developed and workshopped with key stakeholder inputs. It is suggested that Zanzibar’s MTP “to be an innovation sandbox for the world.” However, whatever Zanzibar’s MTP is, it should be worded in a way to ensure that cross-ministerial policies, business ventures, investments, entrepreneurship, global diplomacy, and education are aligned toward a common vision.

Regulations as a Competitive Advantage

When most people think of regulations, they tend to think about restrictions. However, when applied correctly, policies can create a competitive advantage to attract and enable innovation. This fast-changing digital world requires flexible guidelines. Without as much legacy and entrenchment of regulations as other parts of the world, Zanzibar can be progressive and nimble, creating an environment that encourages and empowers creative developments in all areas.

Examples of this abound. 10 years ago, Switzerland decided to create progressive regulations to enable blockchain technologies. Because of that regulatory environment, a new blockchain akin to Bitcoin, called Ethereum, was founded in that country. Ethereum currently has a total market capitalization of over 400 billion USD. In the past 10 years, over 1,200 crypto businesses have launched in Switzerland with a combined value of 380 billion USD. But the examples don’t just involve blockchain and crypto. Estonia has been progressive with its e‑government regulations. Chile attracts entrepreneurship with its Start‑Up Chile seed accelerator. Rwanda enables drone technologies.  And the list goes on.

Zanzibar needs to seize the opportunity to create progressive policies and regulations that anticipate the needs of innovators and businesses utilizing exponential technologies. This will act as a tremendous magnet for global investment. The recently launched Zanzibar Investment Promotion and Protection Act is an excellent example. However, progressive regulations can go further by not just focusing on the financial aspects of investment, but also on the unique technical aspects of emerging innovations.

Enable, Don’t Prescribe

In this fast-changing world, it’s impossible to know which innovations will be winners and which will be losers. That risk should be assumed by businesses, investors, and entrepreneurs. For Zanzibar, the more strategic approach would be to enable a flourishing innovation ecosystem, rather than prescribe what should be done or how.

For Zanzibar, the more strategic approach would be to enable a flourishing innovation ecosystem, rather than prescribe what should be done or how.!

In addition to progressive regulations, there are two critical enablers for digital transformation: energy and internet access. Research has shown that energy and income generation (GDP) are tightly correlated in all countries and over time. Internet access is digital oxygen. Without both energy and internet access, innovation wilts and suffocates. Zanzibar can create an enabling environment for innovation by developing aggressive incentives and regulations to ensure abundant energy production via solar and wind, and even explore small-scale nuclear energy. Internet access should be treated as a public good, not to be controlled and taxed heavily, but to be made accessible for all people at high speeds and affordable rates.

Special Economic Zones (SEZs)

The creation of SEZs is a strategic, compelling, and risk-mitigating way to attract cutting-edge technology, innovation, and investment. It’s practiced globally, such as the Dubai International Finance Center which has special regulatory and legal jurisdiction within the UAE. The previous ZIBI Magazine issue highlighted the development of one such zone in Zanzibar, led by Three-Fold Capital and ZICTIA. Another SEZ is designated for the Northern District of Zanzibar and is still in the conceptualization stage. These are extremely exciting developments that can fast-track Zanzibar’s access to cutting-edge technology, technology experts, and massive financial investment.

Entirely new economic sectors can be developed in Zanzibar in the areas of financial innovation, internet connectivity, land/air/water transportation, food production, medical innovation, blue economy innovations, tourism, and more. But for SEZs to thrive, they need special regulatory and legal frameworks that are durable over time. Zanzibar leaders, in concert with URT regulators, are well-positioned to designate and empower SEZs to thrive.

Inclusivity

Youth and gender inclusivity are vital to Zanzibar’s destiny. The built-in demographics are stunning: By 2050, 35% of all the world’s young people will live in Africa. According to the Zanzibar census, youth aged 15-35 years make up 37% of the entire population. Combined with under 15-year-olds, Zanzibar’s population under the age of 35 years makes up a whopping 77% of the population. Females under the age of 35 years are more than half of that at around 40% of the entire population. Youth—males and females—are inherent to Zanzibar’s destiny. And yet, some observers are raising alarm bells and asking if the youth bulge is a ticking time bomb.

For both national security and strategic reasons, youth inclusivity is vital. Zanzibar youth need to be actively engaged in discussions and visions of the future. They need to be empowered with digital and professional skills that can compete on the global stage. Young entrepreneurs need access to financial capital and markets.

Given the chance, youth will be a transformative force for economic growth in the digital era. It’s self-evident that they are more adept at adopting digital technologies and they are also not invested in legacy systems and economic models that are not purpose-built for the digital era.

You

One of America’s great presidents, John F. Kennedy, once said, “Ask not what your country can do for you. Ask what you can do for your country”. That equally applies to unlocking Zanzibar’s destiny. This cannot be a top-down, controlled transformation from the political elite alone. Each of us, whether you are a politician, civil servant, businessperson, technician, entrepreneur, investor, teacher, artist, religious leader, or international partner, has a role to play in realizing Zanzibar’s destiny.

Each of us can retool our skills and reset our minds to be digitally proficient. Each of us can rethink what’s possible for Zanzibar and what our role is in making that happen. And most importantly, get engaged and activate your agency to build Zanzibar’s future.

The 2023 Global Innovation Index, a ranking of 132 countries according to how innovative and conducive to business they are, ranked Tanzania at a very low #117. The island country of Mauritius had the highest ranking in Africa at #57. But Zanzibar is destined for much greater in the coming 20 years. If all stakeholders turn these keys we will, collectively, unlock Zanzibar’s destiny to be a global hub for technology, innovation, and business.