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Zanzibar’s Digital Ambitions: Embracing Change

The rapid pace of digital transformation presents both challenges and opportunities for smaller nations like Zanzibar. However, leveraging its strategic geographical position, Zanzibar aims to harness digital advancements for its benefit. Director General Shukuru Suleiman Awadh of the Zanzibar Information and Communication Technology Infrastructure Agency (ZICTIA) recently spoke with Business Insight, affirming the island’s genuine commitment to embracing digitalization.

Q: What is the overarching vision behind establishing a cyber city and digital free zone in Zanzibar, and where do you see Zanzibar in years to come?

A: The establishment of a Cyber City and Digital Free Zone in Zanzibar aims to cultivate a cutting-edge ecosystem fueled by digital innovation, technology-driven economic activities, and global connectivity. Looking ahead, I envision Zanzibar positioned as a leader in the digital landscape, competing on par with advanced economies. As an island nation, we recognize the urgency to accelerate our pace and compete effectively in the digital economy.

Q: What specific objectives do you aim to achieve through the development of these zones?

A: Our objectives are twofold: first, to spur economic growth by attracting startups, digital enterprises, and global tech firms to Zanzibar. Second, we aim to enhance Zanzibar’s global connectivity by fostering international collaboration and business partnerships. Leveraging strategic collaborations, such as with Mombasa, Kenya, which hosts several submarine cable landing stations, we seek to bolster Zanzibar’s position as a global gateway.

Q: It does not sound easy for Zanzibar to attract such ventures. One, how do you plan to attract such deals and second is the population prepared for that?

A:  At the outset you are right it may seem so, but we are going to push and foster innovation and Technology Hubs by creating an environment that bringing up local and Global innovation encompassing youths and serves as a hub for technological advancements in East African region as a bigger market strengthening the local youth population and in control. But also the government of Zanzibar has waived 9-year Tax Duties to startups innovations companies.

Q: How do you anticipate the establishment of these zones will positively impact the local economy in Zanzibar?

A: The establishment of the Cyber City and Digital Free Zone is expected to create a substantial number of employment opportunities, basically endeavor the 2020–2030 Vision. Job creation in the cyber city and digital free zone will focus on a diverse range of positions, including skilled technical roles, administrative positions, and emerging digital skill sets. The exact number of employments will depend on the growth of the digital sector.

Q: Are there specific industries or sectors you expect to see significant growth as a result of these developments?

Here this can be explained by raising three key areas:

1. By attracting global and local tech companies and investors and as such digital zones will aim to significantly increase Foreign Direct Investment, injecting capital into Zanzibar economy and cash flow, in collaborating with Threefold Company from Brussels – Belgium will enable FDI growth extensively. Probably as we grow other players might join in.

2. The development of a vibrant digital ecosystem is poised to stimulate growth in the digital economy, fostering innovation, entrepreneurship, and technological advancements. Aim of Hon. President of Zanzibar Vision to make this happen before 2025.

3. Enhance Zanzibar global gateway connectivity by providing a platform for international collaboration and business partnerships, this could be done in conjunction with Mombasa, Kenya – which at the moment landed 7 Submarine (UAE The East African Marine System (TEAMS), Djibouti Africa Regional Express 1(DARE1), AFRICA 1, EASSy, Seacom/Tata, Peace Cable and 2Africa.

Q: What key infrastructure improvements are planned to support the digital ecosystem in these zones?

A: Key infrastructure improvements include robust internet connectivity expected to invest 20 Gbps capacity coming in the months direct from Global Gateway. This will definitely boost the digital facilities, and support smart technologies to the digital ecosystem zones. In addition, this will positively impact the internet prices to consumers.

Q: How will you ensure reliable and high-speed internet connectivity in the cyber city and digital free zone?

A: Reliable and high-speed internet connectivity in the cyber city and digital free zone will be ensured through strategic investments in broadband infrastructure and advanced telecommunications technologies, whereby the Zanzibar Government and the Tanzania Government collaborate to construct TIER III CARRIER NEUTRAL DATA CENTER at Fumba in which reliability is primary objective for both Zanzibar and Tanzania Mainland Government.

Q: What strategies are in place to attract local and foreign investment to these zones? How will the Zanzibar Communication Agency collaborate with investors and stakeholders to fund the development?

A: The way to go is engaging Public-Private Partnerships (PPPs) to leverage private sector investment for the development of critical infrastructure within the zones, sharing the financial burden and risks. ZICTIA have leveraged 2 companies Tigo/Zantel and Threefold on implementing FTTH and Cyber City at Fumba, Zanzibar respectively.

Q. Are there plans for collaboration with educational institutions to support skills development and research within the digital sector? What initiatives will be implemented to ensure the local workforce is equipped with the necessary digital skills?

A: Collaboration with educational institutions is indeed a priority for skills development and research within the digital sector. Initiatives are underway to ensure the local workforce receives the necessary digital skills. Among the Terms of Reference (TOR) of Threefold Company with ZICTIA is promoting such collaboration with local universities/colleges to nurture talents and provide opportunities for international recognition. Additionally, forging partnerships with tech incubators and accelerators will support startups and create a vibrant ecosystem appealing to investors seeking emerging technologies and innovative ventures, particularly in the technology startup sector.

Q: How will the ZICTIA foster collaboration between businesses within the zones and other stakeholders?

A: The ZICTIA will foster collaboration between businesses within the zones and other stakeholders through strategic partnerships and networking opportunities. We anticipate hosting major tech exhibitions in the coming years, positioning Zanzibar on the global tech stage. By facilitating interactions and knowledge-sharing among businesses, investors, and stakeholders, we aim to create a dynamic ecosystem conducive to growth and innovation.

Q: How will the regulatory environment in these zones differ from the rest of Zanzibar, and what benefits will businesses enjoy in terms of regulations and compliance?

A: The regulatory environment in these zones will offer businesses streamlined processes, flexibility, and incentives as stated above, setting them apart from the rest of East Africa region. The aim is to strike a balance between promoting innovation and maintaining regulatory international standards and most importantly conducive to attract global market.

Q: How will the ZICTIA engage with local communities to ensure their perspectives and needs are considered in the development of these zones?

A: Community engagement by ZICTIA will involve actively seeking input from local communities to consider their perspectives and needs in the development of these zones.

Q: What steps will be taken to address potential concerns or challenges raised by the community?

A: To address potential concerns or challenges raised by the community, ZICTIA will implement transparent communication channels, regular town hall meetings, and proactive measures. Visitation to the ground will always be key.