The Key Insights from FinScope Tanzania 2023 – Zanzibar

First and foremost, the Financial Sector Deepening Tanzania (FSDT) would like to commend the Government of Zanzibar for delivering a composed budget for the financial year 2024/25.

The national budget’s focus on development projects, private sector inclusion, and improved fiscal management reflects the Government of Zanzibar’s commitment towards building on their remarkable achievement in advancing financial inclusion from 45% in 2017 to 82% in 2023, according to the FinScope Tanzania 2023-Zanzibar Report.

Since the launch of FinScope Tanzania 2023-Zanzibar Report in March 2024, FSDT has been encouraged by the Government of Zanzibar’s determination to leverage the insights to improve the regulatory environment for financial services to better serve the financial needs and aspirations of the people of Zanzibar.

The 2023 Zanzibar report outlines that previous key access barriers are slowly diminishing, as key access enablers such as access to National Identification Numbers remained high at 74%; ownership of mobile phones increased from 73% in 2017 to 86% in 2023; access to internet increased from 39% in 2017 to 52% in 2023; and access to smartphones increased from 24% in 2017 to 39% in 2023.

Such advancements are establishing the groundwork for the development of the Zanzibar Digital Transformation Policy 2024/2025, as proposed in this year’s national budget. FSDT is encouraged to see Zanzibar making such deliberate efforts to accelerate inclusive and sustainable socio-economic development through digitalization.

We encourage sector players, public and private alike, to continue to utilize the evidence generated from the 2023 Zanzibar report going into the financial year 2024-25 to meet the 7.2% economic growth target, through a transformative financial sector that offers inclusive, quality and sustainable financial solutions. Both structural and behavioral shifts are needed to achieve this and boost the financial sector’s value to the people of Zanzibar and its contribution to economic growth and well-being.

FSDT looks forward to working with both public and private sector players in Zanzibar to provide insights and evidence for decision-making that would support the national strategic vision for this financial year for inclusive and sustainable economic growth.

ZiBi Team