Zanzibar has registered 45 new investment projects worth over $218 million (567.6 billion Tanzanian shillings) within the first 100 days of the government’s second term, demonstrating growing investor confidence in the island’s economy.
The new investments have pushed Zanzibar’s total approved projects under the current administration to 607, valued at approximately $6.9 billion (18 trillion Tanzanian shillings), according to Minister for Labour and Investment Sharrif Ali Sharrif. In his implementation report, Sharrif noted that cumulative investments in the semi-autonomous region now stand at 1,351 projects with a combined value exceeding $14.4 billion (37.4 trillion Tanzanian shillings).
“These achievements reflect the government’s commitment to creating a conducive investment environment and strengthening the private sector as a driver of economic growth,” Sharrif said.
The projects were registered through the Zanzibar Investment Promotion Authority (ZIPA), which has been at the center of the administration’s efforts to streamline investment procedures. As part of ongoing reforms, the government has completed development of the Zanzibar Investment Electronic Window (ZIEW), a digital platform that integrates services from multiple institutions involved in the investment process.
The new system is expected to significantly reduce bureaucracy, lower registration costs, and shorten the timeline for establishing new projects in the islands, addressing key concerns often raised by potential investors about administrative hurdles.
Infrastructure development in special economic zones is also progressing, with plans to expand Fumba Port and construct eight kilometers of internal roads in the Fumba investment area. The government has conducted assessments in other potential development zones, including the IT Madrasa project site, where infrastructure upgrades are planned to support investment activities.
To improve the business environment, the ministry has prepared a comprehensive Doing Business guide aimed at helping investors and entrepreneurs navigate the procedures for establishing operations in Zanzibar. ZIPA has additionally finalized a marketing strategy, Corporate Social Responsibility guidelines, and a Private Capital Flow study to track investment trends.
The real estate sector, which has seen rapid growth in recent years, is also receiving attention, with the government drafting new regulations to address emerging challenges in this market segment.
Public-private partnerships (PPP) have expanded substantially, with several new projects signed within the first 100 days, including vehicle registration and management systems, operation of 17 sports grounds, and rehabilitation of historic sites. This brings the total number of PPP projects under implementation in Zanzibar to 21.
Two additional major projects are currently under negotiation: the installation of a fiber-optic communication network under the Zanzibar Communication Corporation and the construction of a five-star hotel in Buyu.
To diversify investment financing, the government has established the Zanzibar Investment Company Limited, a fully state-owned enterprise aimed at facilitating investments through equity participation and shareholding arrangements. The company is expected to attract both local and international capital to strategic sectors of Zanzibar’s economy.
On labor matters, the ministry reported significant progress in workers’ protection and compliance with labor laws. Through the Labour Commission, inspections of 78 workplaces in Unguja and Pemba revealed that 95 percent of institutions comply with the minimum wage requirement of 347,000 Tanzanian shillings, alongside adherence to regulations on working hours, overtime payments, and employee benefits.
The ministry has also verified 3,408 employment contracts to ensure compliance with national regulations and launched the Decent Work Country Programme III (2025/26–2029/30) in collaboration with the International Labour Organisation (ILO) to promote fair employment conditions.
Efforts are underway to introduce regulations requiring foreign workers to transfer skills to local employees, with draft guidelines expected to be finalized by May 2026. Meanwhile, 1,442 Zanzibaris, predominantly women, have secured overseas employment opportunities in Middle Eastern countries including Oman, Kuwait, Qatar, and Saudi Arabia, working in sectors such as domestic service, transportation, agriculture, and mechanical services.
“These initiatives are part of our broader commitment to ensure that economic progress translates into real opportunities and improved livelihoods for the people of Zanzibar,” Sharrif concluded, emphasizing the government’s focus on inclusive growth and sustainable development.