· With the objective of stimulating economic activities post COVID, an economic stimulus package to revive the economy of Zanzibar has been launched.
· The Government of Zanzibar and CRDB Bank Plc have signed an agreement to disburse Sh81.8 billion.
CRDB Bank Plc, a leading Financial Services Provider in Tanzania has agreed to disburse Sh81.8 billion to stimulate the economy of Zanzibar. The Government of Zanzibar and CRDB Bank Plc have signed an agreement to this effect.
The package is divided into two, Sh60 billion as interest-free loans to income-generating groups in Zanzibar and Sh21.8 billion for improving the necessary infrastructure to support the activities of the income-generating groups.
The deal Code-named: ‘Inuka na Uchumi wa Buluu’ (Grow with the Blue Economy), is expected to stimulate economic activities, post COVID.
Speaking at the official launch of the initiative in Zanzibar, President, Dr Hussein Mwinyi remarked that reducing lending rates was one of his election promises. Instead of lowering interest rates, his government has brought interest-free loans that are guaranteed by the government in partnership with the CRDB Bank.
The package to be disbursed to Zanzibar is part of the $576 million Rapid Credit Facility (RCF) that Tanzania received last year from the International Monetary Fund (IMF). The partnership between the government of Zanzibar and CRDB Bank Plc will play a vital role in the implementation of President Mwinyi’s blue economy agenda.
Already five income-generating groups in the Isles have received a total of Sh94 million in interest-free loans under the scheme and the applications by six more groups are being processed while 50 more applications for loans totalling over Sh2 billion have been received according to the official from CRDB Bank Plc. The Permanent Secretary of the Zanzibar ministry of State in the President’s Office (Finance and Planning), Dr Juma Malik Akil, informed that the government will spend an additional Sh36.5 billion from the Covid-19 kitty to support the fishing sector.
In 2021, the CRDB Bank disbursed a total of Sh150 billion to various sectors of Zanzibar’s economy, including agriculture, construction, trade and industries.
