The 16th Annual General Meeting (AGM) of the Zanzibar National Chamber of Commerce (ZNCC), held on March 17 at the Golden Tulip Airport Hotel, set a new tone for private sector-led transformation.
Under the theme “Enhancing Maritime Transport for the Sustainable Growth of Zanzibar’s Blue Economy,” the AGM convened business leaders, policymakers, and development partners to deliberate on critical issues impacting trade, investment, and infrastructure in the archipelago.
The event spotlighted the integral role that maritime transport plays in propelling Zanzibar’s blue economy, a sector encompassing fisheries, marine resources, coastal tourism, and port services.
The consensus was clear: The future of Zanzibar’s economy lies in unleashing the full potential of its coastal and ocean-based resources.
During a compelling panel discussion and deliberations at the AGM, which was officially opened by the Second Vice President of Zanzibar, Mr. Hemed Suleiman Abdulla, business stakeholders acknowledged the government’s efforts to improve trade conditions. However, they emphasized the urgent need for further reforms, particularly at Zanzibar’s ports, which serve as the backbone of the archipelago’s economy.
CPA Karama Karama, who represented Zanzibar’s trading community, delivered a candid analysis of the logistical challenges hindering commerce on the islands. “The lack of direct shipping routes and prolonged clearance processes at the port drive up costs and discourage investment,” he said. He also added, “Congestion at our ports is not just a minor inconvenience, it is a major barrier to trade.”
Karama’s remarks echoed the broader frustration among private sector actors who are grappling with delays, fragmented regulations, and inadequate port infrastructure. “If Zanzibar is to compete globally, we must streamline our logistics chain. The port is the heartbeat of our economy. It cannot afford to skip a beat,” he added.
To address capacity limitations and logistical inefficiencies at Zanzibar’s main port, the AGM recommended enhancing the operational performance of the Zanzibar Multipurpose Terminal (ZMT). Upgrading handling equipment, training port staff, and improving internal coordination mechanisms would go a long way in increasing efficiency and reducing turnaround times for incoming and outgoing vessels.
Another crucial reform involves the construction of two or three additional berths under the Zanzibar Ports Corporation (ZPC). As the volume of cargo and number of vessels arriving at Zanzibar’s shores increases, so too does the need for expanded docking capacity. New berths would help decongest existing terminals, reduce waiting times for vessels, and position Zanzibar as a competitive port hub in the Indian Ocean.
Participants strongly emphasized the need to reduce bureaucratic hurdles across port-related agencies. These bottlenecks, often caused by duplicated procedures and miscommunication among institutions, delay the movement of goods and frustrate traders. Streamlining clearance protocols, adopting harmonized operating standards, and enhancing inter-agency collaboration could significantly accelerate the port’s processing speed and customer satisfaction.
Another key resolution centered on lowering port fees and taxes for small-scale traders. High charges disproportionately affect micro and small enterprises, discouraging them from using formal channels for trade. Inclusive pricing structures and targeted tax incentives can promote the participation of informal businesses in the formal economy, expand tax base, and promote equitable growth.
Digitization featured prominently among the proposed reforms, especially regarding ZMT’s service systems. Participants called for the urgent implementation of digital platforms to process clearances, manage shipping logistics, and track cargo in real time. Such platforms would increase transparency, eliminate human error, and shorten processing times. Digital transformation also provides a gateway to integrating Zanzibar into global trade networks and building a smart port ecosystem.
The outdated 1995 Port Act was also placed under the spotlight. Participants argued that the existing legislation no longer aligns with the realities of a rapidly modernizing and globally connected maritime industry. Reviewing and amending the Port Act would provide a stronger legal framework for investment, governance, and accountability in port operations.
Finally, participants proposed institutionalizing regular stakeholder engagement through the Ports Improvement Committee (PIC). By establishing a formal mechanism for dialogue between the public and private sectors, port users and regulators can co-create solutions, monitor progress, and maintain transparency in decision-making. The PIC would ensure that reforms are not only proposed but tracked and implemented effectively over time.
Among the most significant updates at the AGM was ZNCC’s advocacy for the Zanzibar Private Sector Associations Development Act. ZNCC’s Executive Director, Hamad Hamad, emphasized the Chamber’s central role in advancing the private sector’s interests and facilitating reforms.
“ZNCC is the voice of the business community. Our job is to ensure that the government creates the right environment for the private sector to thrive,” he declared.
According to Hamad, the Zanzibar Private Sector Associations Development Act, currently under review by an Interministerial Technical Committee, would formalize and unite Zanzibar’s fragmented private sector associations under one legal umbrella.
“This Act will empower associations with financial capacity, leadership development tools, and policy advocacy mechanisms. It will strengthen the voice of the private sector from grassroots to the national level,” he explained.
He announced the Chamber’s plans to launch a digital certification system to accelerate the issuance of export documents and eliminate bureaucratic delays. “By embracing technology, we’re not just improving efficiency, we’re fostering trust and encouraging more businesses to engage in formal trade,” Hamad noted.
ZNCC, he said, is actively investing in digital innovation, in partnership with stakeholders such as Trade Mark Africa, to modernize essential services, enhance e-commerce capabilities, and support fintech solutions.
Representing ZNCC partners, Lilian Masalu, Programs Manager from Trade Mark Africa (TMA), underscored the importance of digital transformation and infrastructure investment. “Our goal is to support both government and private sector in enhancing trade policies, reducing trade barriers, and improving the business ecosystem.” Masalu also reiterated Trade Mark Africa’s commitment to modernizing systems that will make trade faster, cheaper, and more transparent.
Zanzibar’s Minister for Trade and Industrial Development, Mr. Omar Said Shaaban, reassured the business community of the government’s commitment to facilitating a pro-business environment. “We are finalizing a Business Blueprint that identifies all current business challenges and outlines time-bound solutions,” he stated.
He also revealed that a new law is in development to ensure the private sector operates within an internationally competitive regulatory framework. “We aim to reduce red tape, enhance compliance, and simplify the way businesses interact with government,” he added. This signals a shift toward evidence-based policymaking, where feedback from the private sector shapes government action.
In his keynote address, the Second Vice President emphasized the government’s appreciation for ZNCC’s role in advocating for a favorable business and investment environment. He acknowledged that the chamber serves as a crucial link between the government and the private sector, ensuring that business interests are considered in policy formulation.
The Second Vice President urged ZNCC leaders to promote integrity, legal compliance, and ethical business conduct among its members. He stressed that upholding these values would enhance investor confidence and accelerate economic progress. Additionally, he encouraged businesses to voluntarily comply with tax obligations, noting that increased tax revenues would support infrastructure development and public services.
Members were also encouraged to explore investment opportunities in various government-led development projects. The government aims to ensure that local businesses benefit from these initiatives, from project inception to completion.
The 16th AGM firmly placed the private sector at the center of Zanzibar’s economic growth narrative. ZNCC’s leadership, as demonstrated in both its reform agenda and collaborative approach, is positioning the Chamber as a key interlocutor between the state and the business community.
“This is a pivotal moment,” Hamad noted. “We are moving from dialogue to delivery, and ZNCC is leading that transition.”
The resolutions, initiatives, and partnerships discussed at the AGM send a strong message to investors and entrepreneurs:
Zanzibar is ready to do business, better, faster, and smarter
BA. in Mass Communication
Public Relations and Creative Content Design
Email: sophiacharles@zncc.or.tz
