Dar es Salaam. The Zanzibar government has moved to reduce reliance on bank borrowing by partnering with the Dar es Salaam Stock Exchange (DSE) to expand access to capital markets.
A three-year Memorandum of Understanding (MoU) signed between the DSE and the Zanzibar Treasury Registrar is expected to unlock new financing avenues for at least 17 state-linked institutions, according to the government.
The initiative seeks to shift public entities away from traditional bank loans towards market-based financing instruments, including stock market listings and other investor-driven options.
Treasury Registrar Waheed Muhammad Sanya said many public institutions in Zanzibar currently depend heavily on bank credit, which can be both costly and restrictive.
“Through this partnership, institutions will be guided on alternative funding options that are more sustainable and cost-effective,” he said. “This framework creates an alternative route, enabling them to mobilise funds from the capital markets instead of relying solely on loans.”
Mr Sanya added that the Registrar’s Office will roll out a structured action plan to support institutions in accessing capital markets, with a focus on improving financial sustainability and reducing overdependence on bank financing.
The plan is expected to accelerate investment activity, strengthen financial stability and promote long-term growth across public entities.
The collaboration also signals Zanzibar’s broader ambition to deepen its integration into Tanzania’s capital markets ecosystem, while enhancing governance, efficiency and financial management within public institutions.
In addition, the partnership will prioritise capacity building, public awareness and the promotion of an investment culture among both institutions and individuals.
DSE Director of Business Development Emmanuel Nyalali said the initiative would help address low participation by Zanzibar-based institutions and investors in the stock market.
He noted that limited awareness has been a key barrier and stressed the need for sustained education and outreach to broaden engagement.
“There is still significant work to be done in educating stakeholders and encouraging participation. Expanding access through the Registrar’s Office will be critical in driving that change,” he said.
Mr Nyalali described the MoU as a significant milestone, saying it would enhance market efficiency, widen investment access and create new opportunities.
