A vibrant tableau of commerce in Stone Town captures a living legacy of coastal trade-an ecosystem of souvenirs spices and street commerce that signals not only cultural vitality but tangible business and investment opportunities in Zanzibar’s evolving economy.
Zanzibar’s economy continues to demonstrate remarkable resilience and growth, underpinned by rising trade volumes, expanding industrial activity, and far-reaching reforms aimed at transforming the business landscape.
At the Ministry of Trade and Industrial Development, our central mission is to drive this transformation by deepening Zanzibar’s participation in regional and global trade while creating a robust foundation for inclusive and sustainable industrialisation.
Sustained growth in trade performance
Over the past five years, Zanzibar’s trade sector has recorded consistent growth. Official Ministry data show that the total value of trade reached TSH 1.83 trillion in 2024, compared to TSH 1.61 trillion in 2023—a growth rate of 13.3 percent.
This reflects increasing better trade facilitation, and the growing vibrancy of our domestic market.
However, we remain mindful of structural challenges. Imports continue to outpace exports, widening the trade gap. In 2020, imports stood at TSH 847.4 billion against exports worth TSH 55.7 billion. By 2024, imports had risen to TSH 1.65 trillion, while exports increased modestly to TSH 65.3 billion.
This imbalance underscores our dependence on imported goods and industrial inputs, but it also signals the growing momentum of industrialisation and infrastructure development. Our goal is to gradually shift this balance by enhancing local production and value addition.
Zanzibar’s traditional exports—cloves, seaweed, and scrap metal—remain important foreign exchange earners. Yet, diversification and value addition remain at the core of our trade strategy.
Zanzibar is determined to build a competitive export base that extends beyond raw materials to include processed goods and manufactured products.
Two female tourists select aromatic spices from a spice farm stall and place them into a traditional winnowing basket, a vivid moment where heritage craft trade, small scale retail and Zanzibar’s investment potential meet.
Reforms to unlock business growth
To address long-standing barriers to enterprise development, the Ministry, in April 2025, launched two landmark policy frameworks: The Zanzibar Blueprint for Regulatory Framework on the Improvement of Business Environment and the Zanzibar Trade Policy 2024.
The Blueprint identifies 18 key reform areas affecting business operations, including licensing, taxation, and access to finance. Among the reforms already in progress are the establishment of the Business Licensing Regulatory Authority (BLRA), the launch of National Intellectual Property Policy, and the creation of a One Stop Centre to streamline services for investors and entrepreneurs.
These reforms align with Zanzibar Vision 2050, which envisions a high-income, innovation-driven economy. Through these initiatives, we are laying the foundation for a more predictable and competitive investment environment that promotes industrial growth, consumer protection, and fair competition.
Strengthening trade infrastructure
The development of the Dimani Trade Fair Grounds marks a major milestone in enhancing market access and promoting trade linkages. This modern 11-acre facility accommodates over 600 exhibitors and serves as a platform for connecting local producers with regional and international buyers.
Over the past five years, Zanzibar’s trade sector has recorded consistent growth.
At the same time, we are advancing efforts to formalise informal businesses through MKURABITA. Our business formalisation centres in Mkokotoni (Unguja) and Chake Chake (Pemba) have already trained 1,645 entrepreneurs, with 741 successfully completing formal registration.
A joint survey with Brazil’s R2M company revealed that 64.7 percent of traders were unaware of empowerment initiatives, while 34 percent expressed readiness to formalise their operations to access finance. These findings are guiding our new outreach programmes aimed at promoting entrepreneurship and inclusion.
Accelerating industrialisation
Industrialisation remains at the heart of Zanzibar development agenda. The Ministry has designated three industrial zones—Dunga Zuze and Pangatupu in Unguja, and Chamanangwe in Pemba—to anchor manufacturing and agro-processing investments.
Infrastructure development in these areas is advancing rapidly. In Dunga Zuze, for example, 7.83 kilometres of tarmac roads and a complete water supply system are already operational. Eleven investors have secured plots for projects spanning pharmaceuticals, plastics, textiles, aluminium, and agro-processing.
In Pemba, the completion of a seaweed processing factory at Chamanangwe, with a capacity of 30,000 tonnes annually, represents a major stride in the blue economy. This facility will add significant value to one of our key marine resources, improving livelihoods for thousands of seaweed farmers and positioning Zanzibar as a regional leader in marine-based industries.
To sustain this momentum, the Government is partnering with the private sector to expand renewable solar energy, ensuring reliable, affordable, and clean power for industrial production.
Zanzibar door-craftsmanship captures history in wood: skilled artisan shaping door that serve architecture and heritage.
Data-driven industrial management
A key reform currently underway is the establishment of the Industrial Information System (IIS)—a digital platform that enables real-time tracking of industrial performance, production levels, employment, and investment flows.
This system will enhance coordination between regulators and investors, reduce bureaucratic delays, and ensure that industrial policy decisions are data-driven, transparent, and responsive to changing market trends.
Towards an inclusive and sustainable industrial future
Looking ahead, Zanzibar’s economic outlook remains strong. The industrial sector’s share of GDP is projected to rise from 20.8 percent today to 25 percent by 2030, driven by increased investments, enhanced infrastructure, and the ongoing policy reforms.
We are confident that sustained commitment to innovation, entrepreneurship, and export diversification will transform Zanzibar from a consumer-driven economy into a vibrant regional manufacturing hub.
Our journey toward Vision 2050 is clear: to build a modern, inclusive, and resilient economy—anchored on trade, industry, and innovation. Through collective effort, strategic partnerships, and steadfast reform, we are turning that vision into reality.
Principal Secretary, Ministry of Trade & Industrial Development — Zanzibar
