ZANZIBAR, June 14 (NNN-DAILYNEWS) — ZANZIBAR’s economy is poised for stronger growth, projected to reach 7.3 per cent in 2025, up from 7.1 per cent in 2024, as the government outlined an ambitious economic and development roadmap for the 2025/2026 financial year.
The forward-looking plan, presented to the House of Representatives by Minister of State in the President’s Office for Finance and Planning, Dr Saada Mkuya Salum, aims to position the Isles on a path toward uppermiddle-income status.
The robust growth forecast builds on solid performance in 2024, when Gross Domestic Product (GDP) at constant prices reached 4.03tri/-, up from 3.76tri/- in 2023, the Minister said.
Additionally, she said, inflation significantly dropped from 6.9 per cent to 5.1 per cent, signalling improved macroeconomic stability.
Domestic revenue collection also saw improvements, supported by a rise in employment and enhanced food supply.
“Zanzibar’s economic transformation is not by chance. It is the result of deliberate planning, bold leadership and strategic reforms,” Dr Salum stated, attributing the progress to effective macroeconomic management and the government’s commitment to inclusive development.
Policy interventions, including reduced import duties and subsidies on essential goods, further helped stabilise the economy, she said. Dr Salum said the 2025/2026 plan, builds on the foundational gains of Zanzibar Vision 2050 and the medium-term Zanzibar Development Plan (ZADEP) 2021–2026. It further aligns with the United Nations Sustainable Development Goals and Africa Agenda 2063.
“This plan reflects President Dr Hussein Ali Mwinyi’s vision of bold reforms, economic innovation and social equity,” she said, adding that it “echoes the aspirations of our people, for jobs, better services and shared prosperity.”
Key sectors earmarked for intensified investment include agriculture, the blue economy, health, education, ICT, infrastructure and youth and women’s empowerment. Cross-cutting priorities such as climate resilience, disaster preparedness and digital transformation are also central to the plan.
To support this vision, the government expects to allocate a total of 4.55tri/- in the 2025/2026 budget. Of that amount, 4.54tri/- will go toward central government projects, while 9.17bn/- will be directed to local government authorities.
This represents a significant increase from the 3.29tri/- allocated for strategic development projects in 2024/2025, which itself was a 57.77 per cent rise from the previous year.
Dr Saada said the plan will continue to promote public-private partnerships, tax reforms and administrative efficiency to create a more enabling environment for investment and economic diversification.
Major projects will include the construction of Pemba Airport, development of the Mangapwani Port, expanded seafood processing industries and increased production in the blue economy sector.
These initiatives will be complemented by continued investment in roads, clean water, healthcare, education and a new national stadium.
She also underscored the government’s commitment to fiscal discipline, good governance and transparent resource management.
Institutions like the Zanzibar Investment Promotion Authority (ZIPA) and Zanzibar Revenue Authority (ZRA) were praised for their roles in attracting investors and mobilising revenue.
The Minister highlighted the growing involvement of local communities in development efforts, ensuring inclusivity and a “leave no one behind” approach.
Special programmes targeting women, youth, persons with disabilities and smallholder farmers will continue to be prioritised.
Tourism remains a vital pillar of the economy and the government aims to leverage its potential not only to generate foreign exchange but also to create jobs and elevate Zanzibar’s global profile.
“Tourism is not just about visitors. It’s about livelihoods, investment and showcasing Zanzibar to the world,” Dr Saada noted.
As the country heads toward the 2025 general elections, Dr Saada concluded her speech with a call for unity, focus and collective resolve.
“This is a decisive year. Let us go forward with stability, determination and a shared mission to build a stronger, more inclusive Zanzibar for generations to come.” — NNN-DAILYNEWS
