Zanzibar: A Beacon of Investment, Infrastructure Growth, and Sustainable Development.

Zanzibar has emerged as a significant hub for investment and development, driven by strategic initiatives to create a favorable business climate, enhance infrastructure, and boost tourism. Under the leadership of President Samia Suluhu Hassan, the government has prioritized reducing bureaucracy, streamlining legal frameworks, and actively courting investors to capitalize on the economic potential of Zanzibar’s islands. Recent multi-million-dollar projects, including the Bawe Island The Cocoon Collection, showcase the island’s commitment to becoming one of East Africa’s premier investment destinations.

The Bawe Island The Cocoon Collection, valued at $42 million, highlights Zanzibar’s appeal to investors. This luxury resort, developed by Bawe Retreat Limited, incorporates solar power generation and seawater desalination, demonstrating Zanzibar’s dedication to sustainable tourism. As the third investment by Bawe Retreat Limited, following the Gold Hotel in Nungwi and Prison Island, the project reflects the confidence inspired by Zanzibar’s natural beauty and progressive government policies. Through such initiatives, Zanzibar is positioning itself as a leader in luxury tourism and large-scale investment.

The Zanzibar Investment Promotion Authority (ZIPA) has played a pivotal role in managing and facilitating these investments, providing a streamlined process for investors. This has led to an influx of projects focused on sustainable tourism, eco-resorts, and high-end hotels, elevating Zanzibar’s global profile as a premier destination for investors and tourists alike.

Infrastructure development underpins Zanzibar’s ambitious growth strategy. Key projects include the enhancement of ports, such as the Malindi container port, Maruhubi dry port, Fumba container port, and Pemba’s container port, which aim to improve connectivity, facilitate trade, and strengthen the logistics infrastructure. Complementing these are significant upgrades to Amani Abeid Karume International Airport and Pemba Airport, designed to accommodate growing air traffic from tourists and business travelers.

Zanzibar is also investing heavily in road construction to ensure smooth movement across the islands. Key routes, including Mazizini, Chukwani, and Maungani roads, are being upgraded to enhance accessibility to tourist destinations and investment zones. Additionally, the inauguration of Zanzibar’s first flyover at Mwanakwerekwe underscores the government’s commitment to improving the overall transport network and addressing urban congestion.

These developments are matched by a focus on community benefits. The Bawe Island project has created 400 jobs during its construction and operational phases, with a strong emphasis on hiring local talent. Beyond employment, Bawe Retreat Limited has supported local fishermen by building kitchens and purchasing fish, integrating community development into their operations. Similar initiatives across other projects aim to ensure that local economies grow in parallel with international investments.

Economic inclusivity remains a cornerstone of Zanzibar’s strategy. A partnership with the Italian government, which has pledged €5 million, is enabling skill-building programs for Zanzibaris to prepare them for employment in the expanding tourism sector. This initiative ensures that local communities can fully participate in and benefit from the island’s development.

Tourism continues to be a central pillar of Zanzibar’s economic strategy. Its rich cultural heritage, pristine beaches, and diverse natural environment attract visitors seeking both relaxation and adventure. Over the past three years, Zanzibar has registered more than 350 investment projects, valued at $5.5 billion (Sh15 trillion), projected to create over 20,000 jobs. These projects include luxury resorts, eco-tourism facilities, and community-focused initiatives, contributing significantly to the local economy.

The introduction of a mandatory insurance fee for tourists, effective September 2024, further enhances the visitor experience by providing coverage for health issues, accidents, lost baggage, and emergency evacuations. This measure reflects Zanzibar’s commitment to creating a safe and appealing environment for international travelers, strengthening its reputation as a leading global destination.

Zanzibar’s rise as a leading investment hub in East Africa is anchored by its transformative policies, sustainable practices, and robust infrastructure developments. The government’s vision for a thriving economy that benefits both investors and local communities is steadily becoming a reality. Projects like the Bawe Island resort exemplify the island’s potential and set a standard for future developments.

As Zanzibar continues to attract international attention, its focus on sustainability, inclusivity, and innovation ensures that it remains a beacon of progress and development. With ongoing investments in infrastructure, tourism, and capacity building, Zanzibar is poised to play a pivotal role in driving economic growth and empowering its people, securing its position as a shining star in East Africa’s development landscape.