ZIPA fuel Z’bar’s investment surge

Under visionary leadership and bold reforms, the Zanzibar Investment Promotion Authority has drawn billions in capital, ignited economic growth across Unguja and Pemba, and opened a new chapter of opportunity and jobs for the Isles’ youth.

On a clear morning in Unguja’s capital, Stone Town, a new spirit courses through Zanzibar’s streets, one of optimism, emerging enterprise, and rising opportunity. 

From the lionized beaches of South Unguja to the fertile hills of Pemba, investors are marking the archipelago not merely as a scenic tourism destination, but as a vibrant, forward-looking economy. 

This transformation has a name: the Zanzibar Investment Promotion Authority (ZIPA), and at its helm stands Executive Director, Saleh Saad Mohamed, a leader reshaping Zanzibar’s economic trajectory with determination and strategic vision.

In the last five years, ZIPA has become the central force driving both domestic and international capital into Zanzibar. From 2020 to 2025, the authority has registered over 550 investment projects valued at more than USD 6.5 billion, projected to generate 25,000 jobs across multiple sectors, far surpassing historical investment levels in the Isles. 

A New economic identity for the Isles

Zanzibar’s economy has long been anchored in tourism and spices, but under President Dr. Hussein Ali Mwinyi, the government has pursued an expansive vision: to secure sustainable, diversified investment that empowers citizens and positions the archipelago as a leading East African destination for investment.

“We are deliberately creating an environment where investment thrives, not just in tourism, but in industries that deliver jobs, infrastructure, and long-term prosperity,” Dr. Mwinyi said during a state event celebrating recent investments. “Zanzibar has peace, security, and the policies that guarantee investor confidence — and now the world is seeing this.” 

This confidence has translated into capital flowing into a broad range of sectors, including hospitality, manufacturing, agribusiness, maritime services, renewable energy, and industrial infrastructure. To simplify engagement with potential investors, ZIPA has been strengthened into a one-stop digital center that can deliver investment certificates, construction permits, and land allocations with unprecedented speed, oftentimes within 24 hours. 

From Pemba to the World: Investment platforms & partnerships

One of ZIPA’s most ambitious initiatives was the Zanzibar Investment Summit, Pemba 2025, held at the Micheweni Special Economic Zone. The four-day platform brought together global investors, government officials and business leaders to explore high-impact opportunities in sectors such as blue economy, tourism, agribusiness, real estate and digital innovation, all underpinned by attractive fiscal incentives and supportive legislation. 

“This summit isn’t just about Zanzibar,” Saad Mohamed emphasized in the lead-up to the event, “it’s about positioning East Africa as the next frontier for responsible, high-impact investment.” 

Pemba’s potential, long overshadowed by its sister island’s tourism halo, now stands firmly in the spotlight. Driven by ZIPA’s efforts and targeted incentives, investments are flowing into this new frontier, igniting economic activity and offering hope to local entrepreneurs and youth.

The government’s decision to update the Investment Act of 2023 also sent a strong message: Zanzibar is open for business, welcoming capital that creates jobs and lifts communities. Under the new law, investors benefit from long tax holidays, duty exemptions on capital goods, and regulatory clarity, while strict local employment conditions ensure Zanzibaris benefit directly from new ventures. 

Momentum measured in jobs and projects

These reforms have pushed investment registration numbers to remarkable heights. In 2025 alone, ZIPA registered 135 new projects valued at USD 700 million, spanning infrastructure, hospitality, agribusiness and renewable energy, with ripple effects in supply chains and service sectors. 

The quality of these investments has also diversified. Major infrastructure, such as the expansion of Abeid Amani Karume International Airport with a new Terminal 4, has attracted strategic partners and international developers, injecting hundreds of millions of dollars into developmental capital and creating significant employment across construction and operations. 

ZIPA’s aftercare services ensure projects aren’t just launched, they are nurtured to success. Through partnerships with major financial institutions, like the strategic cooperation with France’s Public Investment Bank (BPI), now signed to spur economic growth and knowledge exchange, ZIPA is catalyzing foreign direct investment while bolstering local entrepreneurial capacity. 

Jobs for Youth: A core measure of success

In a nation where youth unemployment has been a persistent concern, ZIPA’s success is measured in opportunities created for young Zanzibaris. Across sectors, new projects promise thousands of jobs, from hospitality professionals and construction workers to tech innovators and agripreneurs.

“This is more than numbers on paper,” said the Minister for Labour and Investment, Shariff Ali Shariff. “Each projected job represents a family empowered, a young person engaged in meaningful work, and a step toward economic inclusivity that benefits all Zanzibaris.” 

In the tourism sector alone, hundreds of hotel and resort projects are employing locals, while manufacturing and processing plants contribute new formal employment routes previously unavailable on the islands. 

Recognition and global positioning

It’s not just investors who have taken notice, the broader international community has recognized ZIPA’s achievements. In 2025, the authority honoured President Dr. Mwinyi with a Special Recognition Award for his outstanding role in championing investment across Zanzibar, particularly for elevating Pemba’s economic profile. 

Accepting the award, Dr. Mwinyi reflected on the collective effort required for Zanzibar’s rise. “This award is not just mine, it belongs to all stakeholders who support the government’s mission to position Zanzibar as a globally competitive investment hub,” he declared. 

ZIPA itself continues to strengthen its global footprint, joining prestigious forums and networks such as the Commonwealth Enterprise and Investment Council (CWEIC), further signalling its dedication to sustainable, high-quality investment flows. 

Transformation by collective will

Today, while Zanzibar still enchants with its centuries-old stone streets and azure seas, a new economic narrative is unfolding — one of partnership, innovation and shared prosperity. Under Director General Saad Mohamed’s stewardship, ZIPA has become more than an agency; it is a gateway to opportunity for investors and for citizens alike.

For the youth eager for careers, for local businesses ready to integrate into global value chains, and for international partners seeking vibrant opportunities, Zanzibar now stands tall alongside its East African peers: ready, welcoming and poised for continued growth.

As ZIPA’s journey continues, the Isles are no longer just a destination for sun-seekers, they are a thriving economic magnet, charting a future of prosperity that blends heritage with entrepreneurial ambition.