Mwinyi: Zanzibar’s financial reforms driving inclusive, sustainable growth

He said every strong economy depends on efficient revenue institutions, adding that his administration had implemented major reforms in tax collection and strengthened the Zanzibar Revenue Authority (ZRA) along with its internal systems.

“We have introduced digital tax collection systems that have significantly reduced revenue leakages, improved efficiency, and made compliance easier for taxpayers,” said Dr Mwinyi during a ceremony held at State House grounds in Zanzibar to celebrate the Isles’ economic and financial reforms, distribute dividends to investors in the Zanzibar Sukuk, and launch a new Islamic-compliant social security scheme.

He noted that Zanzibar is now reaping the results of these efforts, with the economy growing by more than 7.2 percent annually.

He added that sound policies, modern systems, and prudent management of public finances continue to support Zanzibar’s economic expansion.

Dr Mwinyi further cited increased domestic and foreign investment, stable single-digit inflation, and a 278 percent rise in domestic revenue over the past five years, alongside strong performance in the services, tourism, agriculture, and fisheries sectors.

He said the reforms are grounded in accountability, transparency, and effective use of modern technologies.

Speaking about the Sukuk, Dr Mwinyi said that after launching it in 2024, the government is now witnessing the first payout to investors—a milestone that demonstrates its effectiveness in managing sovereign instruments.

“Through Sukuk, the government has financed strategic projects, strengthened investor confidence, and opened new doors for private sector participation in national development,” he said.

“This marks a new financial chapter that places Zanzibar on the global map of Islamic investment. We have every reason to celebrate these achievements and thank everyone who made them possible.”

Dr Mwinyi added that inclusive economic growth cannot be achieved without a solid insurance framework. To that end, the government, through the Zanzibar Insurance Corporation (ZIC), has launched an Islamic insurance (Takaful) scheme designed to provide Sharia-compliant coverage.

He said the scheme is already improving access to health services, ensuring that hospitals and clinics receive timely funding, and giving citizens greater confidence in accessing quality healthcare.

Speaking on the newly launched Sharia-based social security scheme, Dr Mwinyi said the initiative will allow the Zanzibar Social Security Fund (ZSSF) to invest in Sharia-compliant ventures—including facilitating Hajj (pilgrimage) arrangements for members.

Meanwhile, the Minister of State in the President’s Office (Finance and Planning), Dr Saada Mkuya Salum, commended Dr Mwinyi for steering significant financial and economic reforms over his five-year leadership term.

“Leadership demands creativity and forward thinking, and the President has demonstrated both. When he assumed office, the financial management systems were not in good shape, but he has turned that around,” she said.

Deputy Permanent Secretary in the Ministry of Finance and Planning, Mr Aboud Hassan Mwinyi, said that over the past five years, the Eighth Phase Government has implemented major reforms across the economic and financial sectors—forming the backbone of national development.

He said that during this period, actual revenue rose from Sh671 billion to Sh2.9 trillion, the central government budget increased from Sh1.5 trillion to Sh6.9 trillion, and the development budget share grew from 24 to 65 percent. Similarly, the national GDP expanded from Sh4 trillion to Sh6.5 trillion.