Zanzibar is now proudly 61 years old and the celebrations to mark the birthday was by no means small. The Indian Ocean archipelago continues to experience a remarkable transformation driven by sustained economic growth, significant investments and widespread infrastructure development. There was a long procedure to be toed from as early as 20th December 2024 across the archipelago under the theme “Peace, Unity and Solidarity for Our Development”.
At the helm of the marked day of January 12 at the Gombani Stadium was the sitting President of Zanzibar, Hon. Dr Hussein Ali Hassan Mwinyi, took the pride of summing up what his government has achieved under the four years of his leadership since 2020 as well as hailing what Revolution, had in general as attained, for the good of the people.
Addressing the nation Dr. Mwinyi said,” Zanzibar economy has seen significant growth, with the economy expanding by 7.5% by September 2024. The GDP at market prices reached Tsh 6.04 trillion in 2023, up from Tsh 4.78 trillion in 2021, marking an increase of 26%.
This growth has been driven by a vibrant service sector, which grew by an impressive 9.9% in 2023, compared to 1.3% in 2021, with tourism reaching a 145% increase in the number of tourists visiting Zanzibar. Furthermore, government revenue has increased by 51%, rising from TSH 858.2 billion in 2020/2021 to TSH1.3 trillion in 2022/2023.
Inflation has remained under control, with rates fluctuating due to global price increases but remaining in single digits. As of November 2024, inflation had decreased to 4.5%.
Blue Economy
The newly introduced sector of Blue Economy has caused the creation of a number of job opportunities behind Government efforts to boost this new endeavor by distributing 1,027 boats to 32,000 citizens, with 70% of the recipients being youths.
The seaweed farming under the Blue Economy sector is hugely supportive of low income population where by 90% of seaweed farming beneficiaries are women, highlighting the government’s focus on inclusive economic development.
The government’s commitment to the fisheries sector has paid off significantly, with a remarkable “107.2% increase in fish production. The amount of fish produced has more than doubled from 38,107 tons in 2020 to 78,943 tons in 2024,” President Mwinyi remarked.
In numbers, the seaweed production has increased by an impressive 124.6%, rising from 8,785 tonnes (TSH 5.39 billion in 2020) to 19,716 tonnes (TSH 16.14 billion in 2024). A game changer in seaweed sector lies in the completion of the Chamanangwe Seaweed Processing Plant in Pemba, later this expected to have capacity to process 30,000 tonnes of dried seaweed annually.
In a bid to strengthen the blue economy, ZIPA has authorized investments on small islands, registering projects worth USD 377.5 million across 17 islands. These initiatives align with Zanzibar’s broader vision to harness its ocean resources sustainably.
“Investing in our small islands is a game-changer for the blue economy,’ says President Mwinyi proudly and add “We are not only unlocking economic potential but also ensuring that development aligns with environmental sustainability.”
Ports and Maritime Transport
Ports and maritime transport is of great importance to the economy of island nations, as is the case with Zanzibar. Having contracted a foreign company to handle the Malindi Port and carried out reforms including technology addition, the efforts has paid off with container handling numbers increasing to 70,768 containers in 2024, which is 67% of the target to handle 105,000 containers by 2025.
The construction of the Maruhubi dry port and its operationalization will significantly enhance port services. Additionally, the government, in collaboration with investors, has established a cargo port in the Fumba area and strengthened the Mkoani Port in Pemba, which has now begun receiving container ships from overseas with expressed desire to build a port at Kizimkazi, South of Unguja
The efforts being made to strengthen maritime transport, including Maruhubi passenger port, have resulted in a significant increase in the number of passengers flowing in and out with current numbers pegged at between 5,000 and 7,000 per day, a record that has never been achieved before.
The government has also intensified efforts to promote the Mangapwani integrated port area as a key investment opportunity. To support this, infrastructure development is underway, including roads, water supply, and electricity, aimed at ensuring the area’s readiness for major investments.
Road Infrastructure
The government of Zanzibar is intensifying its efforts to enhance infrastructure development as a cornerstone of its economic growth agenda. By December 2024, the construction of 73.83 kilometers out of 100.9 kilometers of urban roads to tarmac and concrete standards were done and dusted, while in the rural areas out of 275.9 kilometers already 66.49 kilometers were done enhancing penetration into the base of economy
Furthermore, preparations are in the final stages for the construction of key routes, including the Tunguu-Makunduchi road (48 kilometers), Fumba-Kisauni road (12 kilometers), and Chake Chake-Mkoani road (43.5 Kilometers), with work expected to begin soon.
Meanwhile, the Wete-Chake Chake road (22.1 kilometers) in Pemba is advancing steadily. By December 2024, 18 kilometers had been completed to gravel standards, and 11 kilometers have already been paved with tarmac, representing 42% implementation progress.
Airport Services
As Zanzibar celebrates 61 years of the Revolution, the government takes pride in significant achievements in enhancing services at airports. The government’s major reforms to collaborate with private sector have driven remarkable growth in the Zanzibar Airports Authority’s revenue, which increased from TZS 11.6 billion in the 2019/2020 financial year to TZS 40.2 billion in 2023/2024.
This surge in revenue has been accompanied by a rise in the number of passengers using Zanzibar airports. The numbers indicate that passengers flow has grown from 1,305,222 in 2021 to 2,140,986 in 2024. 81 several international airlines now operate direct flights to Zanzibar, making Abeid Amani Karume International Airport (AAKIA) the busiest in Tanzania in terms of annual passenger traffic.
To meet the growing demand, the government has initiated major upgrades to the passenger terminal facilities. “The government is enhancing the passenger Terminal One building, which is expected to be completed by February 2025,” Dr. Mwinyi added. Furthermore, the construction of a new passenger terminal II is underway, which will have the capacity to serve over 1.4 million passengers annually. The new terminal will also include parking facilities for 200 vehicles at a time.
This development, estimated to cost USD 34 million, is expected to be completed in 2025 and will increase Abeid Amani Karume International Airport’s capacity to handle over 3 million passengers annually, thereby improving its operational efficiency.
Additionally, in collaboration with East Africa Developers Limited, the construction of a Business Center at Terminal III is aimed at enhancing services and improving the overall image of the airport, providing both business and leisure travelers with modern amenities and better facilities.
For the Pemba Airport, the government has completed all preparations for the airport’s development, and the installation of equipment, as well as compensation payments to citizens affected by the project, are ongoing with target to further improvements in Zanzibar’s aviation sector.
Zanzibar Investment Boom
Zanzibar has marked a significant milestone in its investment journey, registering 449 projects valued at USD 5.9 billion through the Zanzibar Investment Promotion Authority (ZIPA). These projects are set to create over 22,966 jobs across various economic sectors, further cementing the Isles’ reputation as a flourishing investment destination. Speaking about the achievement, Dr. Mwinyi commended the collaborative efforts driving these successes.
The registered projects span to diverse sectors, including hospitality with 169 projects, real estate (99 projects), manufacturing (43 projects), agriculture (28 projects), sports (28 projects), and 82 others. This broad sectoral representation highlights the government’s strategic efforts to diversify the economy and attract investments in emerging and traditional areas.
Economic Empowerment
In pursuit of its economic revolution objectives, the Zanzibar government has intensified efforts to empower citizenry economically, aiming to alleviate poverty and improve livelihoods across the Isles. Through the Zanzibar Economic Empowerment Agency (ZEEA), the government has disbursed loans worth Tsh 35.2 billion to 24,111 citizens, including 373 individuals with physical disabilities. These loans have been directed toward key sectors such as trade, crafts, construction, agriculture, and livestock.
Highlighting the impact of these efforts, President Dr. Hussein Mwinyi stated, “economic empowerment is central to our agenda, ensuring that every citizen has the opportunity to contribute to and benefit from the progress we are achieving.” He expounded that the youth quota is very important and the focus is to reach 40 percent of the youth population.
In general, in both isles Tshs 60 billion have been dished out. There have been efforts to build markets for the same purpose of creating job opportunities for the population.
Manufacturing Sector
A total of TSH 33.12 billion has been invested in the Dunga Industrial Park, with seven licenses granted for factories in pharmaceuticals (2 factories), an assembly plant for motorcycles, tricycles and electric vehicles, clothing manufacturing factory, steel products, and a 50-megawatt power plant for the region. The manufacturing sector is expected to increase its contribution to GDP from 20.8% to 25% by 2030, driving employment and economic growth.
Construction of Residential, Offices, and Commercial Areas
The government has continued the development of residential housing both in urban and rural areas. The construction of 276 residential houses, carried out through the Zanzibar Social Security Fund (ZSSF) in the Tomondo area, has been completed.
Additionally, the government, through the Zanzibar Housing Corporation, has completed the construction of 72 houses at Mchina area, as well as 8 houses and 20 shops in the Mkungu Malofa area in Pemba. The government aims to build 3,000 houses in the Chumbuni area, with the first phase of construction, involving 1,055 houses, currently underway.
Other projects include the construction of 24 apartments at Kiembe Samaki, 1,095 houses at Kikwajuni, 548 at Kisakasaka A, 240 Kisakasaka B, 209 at Saateni, 120 at Nyamanzi, and 190 at Mfikiwa Pemba. The government has also designated specific areas for the construction of residential houses for citizens in each district.
Judicial infrastructure
Zanzibar’s judicial and governance reforms are also reflected in the government’s policies aimed at promoting social justice, human rights, and political inclusivity. A concerted effort is being made to engage citizens in the decision-making process, ensuring that their voices are heard, especially in matters that impact their daily lives. This participatory approach to governance is vital for ensuring that policies and reforms are both effective and aligned with the needs of the people.
Several court buildings at different levels have been constructed to achieve this end.
The Future of Zanzibar
Zanzibar stands at the cusp of a transformative era that celebrates over six decades of progress, unity, and resilience. From its revolutionary roots in 1964 to the present, the Isles have steadily evolved, embracing self-determination and progress under the guiding principles of social justice, economic equity, and political stability.
Today, Zanzibar is a beacon of growth and opportunity, particularly in key sectors such as tourism and the emerging blue economy. The government’s focus on diversifying its economy, coupled with investments in infrastructure, education, healthcare, and environmental sustainability, is positioning the Isles as a dynamic hub for both local and international investors.
The ongoing development of Zanzibar’s tourism and blue economy is creating an inviting environment for investment. The government’s commitment to strengthening infrastructure, ranging from world-class sports facilities to improved transportation and communication networks, offers substantial potential for those looking to invest in a rapidly growing economy.
The government has underscored the importance of building on Zanzibar’s historical legacy to create new opportunities for economic empowerment and social progress. With strategic partnerships and continued investments in good governance, legal frameworks, and social services, Zanzibar is poised to offer a stable and sustainable environment for both entrepreneurs and investors.
Mass Communication & PR Strategists (PR, Creative Content Design & Media Management)
