Zanzibar’s Blue Economy gains depth as Policy transforms lives and industries.

What does the Blue Economy mean for Zanzibar?

The Blue Economy represents a leading socio-economic policy framework that promotes the sustainable exploration and management of ocean resources, driving economic growth and improving livelihoods across Zanzibar.

Zanzibar, an archipelago comprising the two main islands of Unguja and Pemba along with 53 smaller islets, relies heavily on the ocean and its related economic activities for the socio-economic development of its approximately 1.9 million people, more than 51% of whom are women. In 2020, under the leadership of H.E. Dr. Hussein Ali Mwinyi, Zanzibar made a strategic decision to fully embrace the Blue Economy concept as a key catalyst for transforming the islands’ economy and achieving Upper-Middle-Income status by 2050.

What has been done so far: institutional and legal frameworks?

Zanzibar is among the few countries with a fully-fledged Ministry of Blue Economy, representing a significant institutional framework and a key milestone for a small island developing state. The foundation of Zanzibar’s blue economy lies in the Zanzibar Development Vision 2050, which served as the basis for the Blue Economy Policy of 2022 and its corresponding implementation plan. Several supporting policies have since been developed or strengthened to facilitate the smooth execution of the blue economy agenda. Collectively, these efforts position Zanzibar as a leading example of a nation embracing and advancing the principles of the blue economy.

“Role and Mandate of the Ministry of Blue Economy and Fisheries

The Ministry of Blue Economy and Fisheries holds the overarching responsibility of ensuring the realization of Zanzibar’s Blue Economy aspirations. The Ministry aims to motivate and empower local communities to seize Blue Economy opportunities by enhancing capacity through training, providing essential infrastructure and tools, and ensuring access to markets—all geared toward improving livelihoods.

In collaboration with the Zanzibar Investment Promotion Agency (ZIPA) and other government institutions, the Ministry also mobilizes large-scale investments that generate employment, increase income, and boost government revenue across five key priority areas of Zanzibar’s Blue Economy:

1. Fisheries and Aquaculture: Promotion of both artisanal and deep-sea fishing, seaweed, fish and seacucumber farming supported by the development of essential infrastructure and value addition facilities to enhance productivity, sustainability, and market competitiveness.
2. Sustainable Tourism: Tourism is the main socio-economic driver of Zanzibar. Zanzibar has positioned itself as a premier tourist destination, renowned for their crystal-white beaches, abundant sunshine, rich and unique culture—home of the Swahili language—as well as beautiful islets and diverse recreational activities.
3. International Trade and Marine Infrastructure: Maritime transport and marine infrastructure are vital to supporting Zanzibar’s international trade, about 99% of which is seaborne. Moreover, as the only practical means of communication among the Zanzibar islands is by water, seaports serve as essential gateways for connectivity and commerce.
4. Energy Independence: Zanzibar requires reliable energy to sustain its growing economy, with an increasing focus on clean offshore energy sources. The islands also possess significant potential reserves of oil and gas that warrant further exploration and development.
5. Blue Economy Governance: The realization of Zanzibar’s blue economy aspirations depends on the sustainable exploration and use of ocean resources. Therefore, effective ocean governance, marine conservation, and the protection of marine biodiversity are at the core of Zanzibar’s blue economy agenda.

To achieve these targets, the Ministry works closely with government agencies, investors, development partners, and the general public. Its responsibilities focus on three core areas:

1. Development of the fisheries and aquaculture sectors
2. Mobilization and coordination of oil and gas exploration
3. Coordination of all Blue Economy activities at the local, national, and international levels, in line with the Blue Economy Implementation Strategy (2022–2027). “Through effective coordination, the Ministry aligns all Blue Economy stakeholders toward the realization of these prioritized Blue Economy goals.

Some of the notable achievements:

Over the past five years (2020-2025), Zanzibar has made notable progress in implementing the Blue Economy policy. These achievements are the result of deliberate efforts by the Revolutionary Government of Zanzibar, under the leadership of President Dr. Hussein Ali Mwinyi, to empower both local communities and attracting large-scale investors to capitalize on the opportunities offered across all five priority areas of the Blue Economy:

1. Fisheries and aquaculture: The value chains in this sector, which primarily include artisanal fishing and seaweed farming, provide approximately 100,000 jobs, with around 17% held by women. This sector is a vital lifeline for over one-third of the population, contributing significantly to food security, protein supply, and income generation. Over the past five years, its contribution to the economy has ranged between 4% and 8%.

Between 2020 and 2024, more than 32,000 fishers and seaweed farmers were empowered through specialized training programs aimed at improving their skills and productivity. Additionally, 1,027 boats with engines were distributed, including 527 fishing boats equipped with necessary modern technologies and 500 boats dedicated to seaweed farming.

These government efforts have been complemented by support from NGOs and development partners. Notably, the Zanzibar Maisha Bora Foundation has played a key role in empowering seaweed farmers.

To further support the sector, the government continues to invest in infrastructure, including the state-of-the-art seaweed processing factory in Pemba, anchovy processing facilities at Kama in Unguja and Ndagoni in Pemba, as well as several fish landing sites and markets located in fisheries hotspots.

As a result of these empowerment efforts, fish catch increased by 110%, rising from 38,107 tons in 2020 to over 78,000 tons in 2024. The value of the catch grew even more significantly, increasing by 201%, from 205 billion TZS in 2020 to 618 billion TZS in 2024.

Similar achievements were recorded in the seaweed sector, where seaweed exports increased by 124.6%, rising from 8,785 tons in 2020 (with total production of approximately 44,000 tons) to 19,719 tons in 2024 (production reaching 98,600 tons). The value of seaweed exports grew even more significantly, increasing by 199%, from TZS 5.4 billion in 2020 to TZS 16.2 billion in 2024.

Between 2023 and 2024, the government, through the Zanzibar Seaweed Company, paid coastal communities over TZS 2.5 billion for the purchase of 3,131 tons of dry Ulva seaweed, directly benefiting approximately 8,270 people. Prior to 2020, this Ulva species was regarded as waste on the beaches; however, it has now transformed into “green gold,” providing an important alternative source of livelihood for many coastal communities.

The government is intensifying investment in fisheries infrastructure to boost the sector. Major projects include the construction of state-of-the-art fish landing sites and markets in Mkoani, Pemba (95% complete, TZS 11 billion) and Fungurefu, Unguja (35% complete, TZS 11 billion), along with additional sites in Kengeja, Kiwani, and Msuka(Pemba) and Kizimkazi and Bwekunduni (Unguja).

Construction is about to start for two modern fish ports at Ngalawa (Unguja) and Shumba ya Mjini (Pemba), designed to support deep-sea fishing operations. Valued at approximately USD 80 million, these ports will feature fish processing plants, ultra-large cold storage, and ice-making facilities.

Additionally, the government has designated a 235-hectare Blue Economy Investment Zone in Fungurefu, aimed at integrating fishers, anchovy, and seaweed stakeholders, while providing permanent shelters for anchovy operators. Large ZAFICO fishing vessels are also being procured to further strengthen the industry’s capacity.

2. Sustainable Tourism: Tourism serves as a cornerstone of Zanzibar’s blue economy and a major catalyst for social and economic growth. Rooted in the islands’ natural beauty, cultural heritage, and marine ecosystem, the sector draws global visitors to attractions such as the UNESCO-listed Stone Town, pristine beaches, and vibrant cultural festivals.

Beyond its economic impact, tourism accounting for about 34.5% of national GDP and generating approximately 45,000 jobs in 2024. It is estimated that the direct, indirect, and induced contributions of the tourism sector account for over 68.5% of the national GDP, with more than 85% derived from hospitality-related activities. The sector further contributes approximately 88% of the country’s foreign exchange earnings, underscoring its central role in the national economy. It supports livelihoods through employment in hospitality, transport, handicrafts, and cultural industries, while promoting entrepreneurship, particularly among women and youth. The rise of eco- and community-based tourism has further strengthened local involvement in conservation and heritage preservation, fostering social cohesion and pride in Zanzibar’s unique identity.

• The number of tourists arriving in Zanzibar increased by 186.5%, rising from 260,644 in 2020 to 736,755 in 2024.
• The GDP contribution of the tourism sector grew from 29.2% in 2020 to 34.5% in 2024.
• The number of hotels expanded by 35%, increasing from 620 in 2020—of which 36 were five-star establishments—to 883 in 2024, including 48 five-star hotels.
• The bed capacity rose by 58%, from 16,677 beds in 2020 to 29,487 beds in 2024.
• Of the US$6.3 billion worth of projects registered by ZIPA, over 60% were related to the tourism sector.

3. Maritime Trade and Infrastructure: Zanzibar is an island nation that relies heavily on the ocean for its socio-economic development. Approximately 99% of Zanzibar’s international trade is conducted by sea. Tourism, one of the country’s main economic engines, is centered around its marine and coastal attractions—much of which are accessible only through ocean channels. Moreover, the most economical and practical means of communication and transport between the islands is by water.

• The number of passengers processed at ports increased by 73%, rising from 2.72 million in 2020 to 4.71 million in 2024.
• TEUs handled grew by 27.5%, from 67,891 in 2020 to 86,543 in 2024.
• The number of foreign ships calling at Zanzibar ports rose by 58%, from 129 ships in 2020 to 205 ships in 2024.
• Local ships and native vessels handled increased by 41%, from 12,227 vessels in 2020 to 17,216 vessels in 2024.
• General cargo handled surged by 219%, from 0.734 million tons in 2020 to 1.61 million tons in 2024

4. Energy: Through the Blue Economy Policy, Zanzibar aims to achieve self-sufficiency by exploring offshore energy resources, encompassing both renewable and non-renewable sources such as oil and gas. Currently, the islands receive their electricity supply from mainland Tanzania via underwater cables — a 100 MW and 25 MW connection from Dar es Salaam to Unguja Island, and a 20 MW connection from Tanga to Pemba. Considering the growing investment levels and the goal of ensuring energy independence, Zanzibar requires diversified and reliable power sources, with a strong emphasis on offshore clean energy development.

Several initiatives have been made to explore different options:

• Approximately 130 MW of solar power is currently being generated on Kokota and Njau Islands in Pemba. In addition, 175 MW of solar and wind power agreements have been signed with four companies.
•  Eight offshore and two onshore oil and gas blocks have been clearly demarcated and are now open for exploration by international oil and gas companies. These blocks are supported by extensive studies and data, including 2D seismic surveys. Several potential international oil companies (IOCs) are currently at various stages of negotiation to obtain licenses for oil and gas exploration in Zanzibar.

5. Blue economy governance: Ocean governance lies at the core of Zanzibar’s blue economy framework—without it, sustainable blue economy initiatives cannot be effectively achieved. The government, through the Department of Marine Conservation, in collaboration with NGOs, development partners, and coastal communities, is working collectively to ensure that Zanzibar’s marine ecosystems remain healthy, sustainable, and productive. The islands host five designated marine conservation areas covering approximately 2,200 square kilometers, underscoring Zanzibar’s commitment to protecting its ocean resources for current and future generations.