Zanzibar Projected to Grow at 7.3% in 2025

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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.

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 the 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 upper-middle-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.

Policy interventions, including reduced import duties and subsidies on essential goods, further helped stabilise the economy, she said. Dr Salum said the 2025-26 plan builds on the foundational gains of Zanzibar Vision 2050 and the medium-term Zanzibar Development Plan (ZADEP) 2021–26. It further aligns with the United Nations Sustainable Development Goals and the African Agenda 2063.

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.

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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.