Unguja. Zanzibar President Hussein Mwinyi has outlined five key factors that make the archipelago an attractive investment destination, citing improved infrastructure as the most significant.
The other factors are policy stability, strategic location, a youthful and skilled workforce, natural and competitive advantages, and a government that positions itself as a partner rather than a regulator.
Dr Mwinyi made the remarks yesterday, while opening the Zanzibar Investment Forum, which brought together more than 700 participants, including policymakers, investors, private sector leaders and development partners.
“We have undertaken reforms that protect investors, simplify procedures and guarantee policy stability. Your investment is safe here,” he said.
On strategic location, he said Zanzibar sits at the crossroads of Africa, Asia and the Middle East, adding that upgraded airport and port projects position it as an emerging regional logistics and trade hub.
On human capital, he said a significant proportion of the population is under 35. “We are investing in vocational training, digital skills and entrepreneurship to prepare young people to drive new industries,” he said.
On natural and competitive advantages, he said: “From the blue economy and renewable energy potential to fertile land for agro-processing and our world-class tourism brand, Zanzibar offers sectors where returns are real and sustainable.”
He said the government has shifted from being a regulator to a partner through the Zanzibar Investment Promotion Authority (ZIPA) and other institutions, offering a one-stop centre, aftercare services and direct engagement.
“We are here to solve problems, not create them,” he said.
The forum is themed, 'Promoting Investment, Diversification and Sustainable Development in Zanzibar: Shaping a New Growth Story for Zanzibar'.
Dr Mwinyi said the reflects a deliberate policy direction.
“This is not just a slogan. It reflects a strategic decision to expand the economic base, reduce reliance on a single sector and build a more resilient, productive and inclusive economy,” he said.
He added that the government has invested heavily in infrastructure, including roads, airports, ports, electricity generation, tourism facilities and public services.
The minister for Labour and Investment, Shariff Ali Shariff, said the forum aims to build long-term partnerships to accelerate industrialisation, infrastructure development, tourism growth, digital transformation, investment and renewable energy. ZIPA Director General, Saleh Saad Mohamed, said the agency remains committed to improving investor services, policy coordination and support systems.
“Investment is not just capital flows, but sustainable partnerships that create opportunities, transfer knowledge, empower communities and support national prosperity,” he said.
Zanzibar National Chamber of Commerce (ZNCC) Chairman, Ali Amour, said President Mwinyi has strengthened investor confidence through closer government–private sector cooperation.
He said this approach has positioned Zanzibar as a more attractive destination for both local and foreign investors.
He added that opportunities remain vast, with tourism as the backbone, while future growth is expected in the blue economy, agro-processing, fisheries, manufacturing, renewable energy, transport equipment, digital solutions, financial services and the knowledge economy.
“We welcome the Private Sector Development Bill. Once enacted, it will provide the legal and institutional framework needed. The private sector is ready to invest more, innovate more, create jobs and accelerate Vision 2050,” he said.
European Union representative Dorota Panczyk said the EU remains a long-standing partner of Zanzibar and Tanzania, with cooperation focused on inclusive growth, diversification, value addition and job creation, particularly for young people.
“Our partnership is based on shared values of democracy, good governance and transparency, which are essential for a stable and predictable business environment that attracts investment,” she said.
