Mwinyi: Strong policies bolster investor confidence in Zanzibar
President Hussein Mwinyi shares a light moment with Golden Tulip' Hotel's Hassan Raza during the launch of the second phase of the hotel
Unguja. Zanzibar President Hussein Mwinyi has said the sustained investment by local investors signals growing confidence in Zanzibar as an investment destination, driven by a favourable business environment, sound policies and development strides in key sectors, particularly tourism.
He made the remarks over the weekend, during the launch of the second phase of Golden Tulip Hotel project located near Zanzibar’s airport, a venture owned by local firm Royal Suites of Zanzibar Ltd.
“This clearly shows that Zanzibar is increasingly trusted as an investment destination, with its environment and policies attracting many,” Dr Mwinyi said.
He said the government is pushing significant efforts to improve the investment climate, including connecting all investment zones across Zanzibar to quality roads, reliable electricity and clean, safe water.
Dr Mwinyi noted that investment procedures have been streamlined under a one-stop service system at the Zanzibar Investment Promotion Authority (ZIPA), which can now issue investment certificates within 24 hours once all requirements are fulfilled.
He added that Zanzibar is implementing the Vision 2020–2050 development blueprint and the Five-Year Development Plan, in which tourism has been prioritised as a key driver of economic growth and job creation.
“It is clear that this project will greatly contribute to our economic growth, creating more job opportunities, especially for youth and women in the tourism sector. It will also enhance Zanzibar’s profile as a hub for international conferences, attracting high-end tourists to the country,” he said.
The President said the government would continue working closely with the private sector to ensure investments generate shared benefits, aiming for projects that boost national development through local resource use, skills development among the workforce, and sustainable, green tourism investments.
He also assured investors that Zanzibar remains committed to improving the business environment day by day, while pursuing development projects including airports, internal roads, and improvements in water and energy supply.
“Better economic infrastructure and social services will turn Zanzibar into a tourism business hub for the entire East and Central African region,” he said.
Investor Hassan Mohammed Raza said the first phase of the Golden Tulip project created 98 direct jobs, while the second phase has added another 90 jobs, bringing the total to 188. Of these, 180 positions, or 96 percent, are held by locals, while foreigners account for four percent.
He said that over the past four years, the project has paid Sh6 billion in taxes and fees to the government.
“In the upcoming phases, we plan to develop four projects with a total value of $25 million (approximately Sh64 billion). Aligned with the government’s goal to host international conferences, some of these projects will include conference facilities, expected to be completed by 2028,” he said.
President Mwinyi being shown the third phase of Golden Tulip Hotel by Mr Hassan Raza after he launched the second phase over the weekend
Meanwhile, Zanzibar Airports Authority (ZAA) Director General Seif Abdalla Juma said the hotel project complies with all required security and safety standards for facilities within airport zones.
He observed that while airports were once merely transit points for passengers, they are increasingly being transformed into hubs of business and investment, with commercial spaces, residential areas, shops and hotels.
“We have ensured that this airport becomes a comprehensive centre for services and commerce to align with this new vision. We also plan to open a business centre to further boost trade and services at the airport,” he said.
ZIPA Chief Executive Officer Saleh Saad Mohamed said that since its establishment, the authority has registered 1,380 projects worth more than $12.5 million (Sh23.389 billion). Under the current Eighth Phase Government alone, ZIPA has registered over 483 projects valued at more than $6.1 million (around TSh15.806 billion), accounting for about half of the total capital invested.
“Across all these projects, more than 25,000 jobs are anticipated. Of the total, 145 projects are based in the Urban West Region, with investments exceeding $3.1 million (Sh8.032 billion), representing about 50 percent of all capital invested in Zanzibar during this period,” Saleh said.
