Infrastructure! Profound word. Until the 20th century it meant roads, bridges, ports, and airports. Sufficient for those days. Then, with the automobile came the need to add more infrastructure. Industry, Petrol stations. Railways. And this century, however, it has a critical new component. The internet. Call it data, mobile, web access, wi-fi, whatever! It is part of infrastructure.
Zanzibar has been on a roll economically since the first wave of liberalization in the 1980s, with per capital GDP rising from USD 200 in 1990 to approximately USD 1,340 in 2022.
The generic profile of foreign investments in Zanzibar is in tourism and now slowly real estate is claiming it share and position. There are a few mega projects and many medium and small sized projects that do not fall under the ZIPA umbrella. Each investor has a unique experience of their time in Zanzibar, and each will have a mixed bag of pros and cons.
A common lament of many foreigners, investors, and tourists alike, in Zanzibar is that of unreliable internet services compared to their home countries. From airlines to banks, tour firms to hotels, and the many cottage industries that depend on the tourist dollar on the sidelines, everybody has had a nasty experience at least once with internet in Zanzibar.
There are not many internet service providers in Zanzibar to begin with. Apart from the national mobile firms, there are Zanlink, Zanzinet and iNetTZ among others providing broadband services. However, service remains spotty at times and drags back many people who want to do business online.
The beauty and serenity of Zanzibar has enthralled many foreigners, and in the current environment there are many foreigners who dream of living in Zanzibar as digital nomads, but the current state of broadband on the isles is a huge stumbling block for them.
A digital nomad is a professional who works mostly online, whether in a regular desk job (e.g., data analyst, transcriber, etc.) or a creative (graphic designer, musician, content creator, etc.). Such a professional can live and work from anywhere in the world where there is reliable internet and electricity, and for many countries with a policy of giving their citizens priority in employment and business, giving digital nomads residency is relatively risk-free as no jobs are lost by the locals.
Zanzibar has been losing out on digital nomads because of the unreliability of internet service on the Isles. According to available information around 35 million people are tied to this economy and which is now standing at around US Dollars 787 annually according to survey conducted in 2023. Zanzibar can plan to have slice of the cake on digital nomad economy.
The Need for a Vibrant Free Press
One component that is key to driving economic growth – one that is often forgotten by policymakers – is that of a vibrant media. How does the media play a role in economic development, you may ask. And it would be a valid question.
A vibrant and free media disseminates information to citizens. When information and news are disseminated without hindrance or vested interests, the result is a people who are much more knowledgeable and sophisticated.
An abundance of news is a boon for investors and business executives as it helps them make informed decisions, thus bolstering confidence and mitigating risk. A free press is a powerful force for holding those in power and business managers accountable, fostering good governance, and eliminating corruption and wastage.
When media reports without fear or favor on public expenditure and development projects, public funds are likely to be used cost-effectively, giving the taxpayer more value for his shillings.
A robust media will highlight success stories and failures of entrepreneurs, thereby building trust when guiding new entrants to better innovation. Highlighting opportunities, which are relatively obscure in emerging markets, economic trends, and regulatory changes, goes a long way in fostering confidence. And, if the success stories are truly successful, then they are bound to attract more investment.
One small but significant impact of a positive global reputation is that along with attracting high- quality investors, the country also gains by attracting high-quality talent.
It also educates the consumers on their rights and the best bargains on products and services, thus raising demand for good goods and spurring competition, as informed consumers will always support ethical local businesses.
When an economy is on the ascendant locally, and the media handles its role effectively, the positive coverage enhances the overall perception of that economy’s business potential to the rest of the world. This in turn piques the curiosity of prospective foreign investors. In the process, the media can successfully counter any malicious misinformation that may have been spread by unfriendly media houses.
Media also plays a huge role in promoting literacy among its readership, audiences, and viewers.
Consumers in an economy with a surfeit if a proactive media are generally more attuned to financial terminology and are also more informed about social issues such as the environment, the budget, deficits, capital accounts, etc.
Any media worth its salt will also provide a platform to the public for candid feedback, both for the media houses and for the authorities. Letters to the Editor page, Agony Aunt page, guest columns and op-eds all go a long way to building bridges with the citizenry.
Additionally, media houses can help communities connect by sharing information and facilitating forums with decision makers. In this way, the media is a bridge from the government to the public.
Many magazines have regular segments for reporting on new ideas, innovative processes, and outstanding entrepreneurship. This can be replicated in Zanzibar.
A social by-product of a functioning media is to unite diverse communities by fostering a sense of purpose amid shared values and common goals. The media also facilitates public debate on challenges facing the business communities and helps find solutions to them by encouraging collaboration across all sectors.
When applying all the above points to Zanzibar, one concludes that there is a lot of room for development of the media to achieve the penetration and professionalism of advanced economies.
Zanzibar has only two daily publications- one in English and one is Kiswahili- all owned by the Government. There indeed several daily and weekly publications coming across the channel in Dar es salaam. There is very little devotion to finance, economics, business, and investment, especially with a focus on the growing foreign investor community from those government owned publications.
But there are two main publications that are on the forefront on publishing business and investment articles. Namely the The Citizen published in Dar es salaam and a more astute publication The EastAfrican weekly, published by the Nation Media Group of Kenya, with its regional slant covering all the East African Community member states. The paper is published simultaneously every Saturday in Dar es salaam, Nairobi, and Kampala, so as to give each founding member state equal importance. However, The East African is not Zanzibar-centric, and therefore does not qualify as a local business paper.
This magazine, Zanzibar Investment and Business Insights (ZIBI Magazine), which celebrates its first birthday with this edition, is a very welcome addition to the rack for Zanzibar business community.
The publisher has high hopes of offering a platform for investors to exchange notes and learn from each other and in the process streamline the investment journey of future entrepreneurs.
There is a huge need for the establishment of many more business-oriented magazines, monthly or fortnightly, that target the growing investment sector. Magazines can choose to specialize in tourism, aviation, hospitality, finance, law, etc.
And since Zanzibar now has investors from several countries, who all speak various tongues, the case is compelling for magazines that cater to different language speakers.
The launch of many business magazines could have a revolutionary effect on the economy, as more foreign media professionals would likely be hired and therefore create a symbiotic effect.
Written By: Bilal Dadar
Management Consultant and Business Advisor
Consulting@bilaldadar.com
