Zanzibar bets on $11.8 billion blue economy prospects

As government officials, financiers and development partners gathered at the Tanzania Investment Summit 2026 in Arusha on Tuesday, the conversation was no longer centred on livelihoods alone.

Instead, it focussed on a bigger question: how to transform Zanzibar’s marine resources into large-scale commercial ventures capable of attracting private investment, creating jobs, expanding exports and driving economic growth.

The discussions revealed an ambitious push to move beyond traditional fishing and seaweed farming towards modern fishing ports, industrial seafood processing, aquaculture and export-oriented value chains.

For Zanzibar’s leaders, the opportunity lies not in creating a blue economy sector from scratch, but in unlocking the value of resources that have long existed but remain underutilised.

Principal Secretary in the Ministry of Blue Economy and Fisheries, Capt Hamad Bakari Hamad, told investors that the government is actively seeking private sector participation to accelerate growth in the sector.

To achieve that goal, Zanzibar is opening the door to a range of investment models, including public-private partnerships, joint ventures, concession agreements, build-operate-transfer arrangements, lease agreements and strategic investment partnerships.

The government, he said, recognises that while marine resources are abundant, transforming them into sustainable economic opportunities requires capital, technology and expertise.

“We are open to several kinds of partnerships,” he said, inviting investors to explore opportunities in fisheries and the wider blue economy.

One of the clearest examples of the shift underway can be seen in fisheries.

According to Zanzibar Fisheries Company Limited (Zafico) Director General Dr Ameir Haidar Mshenga, much of the islands’ fishing activity remains concentrated close to shore, limiting access to deeper waters where significant resources remain largely untapped.

Most local fishers rarely venture beyond six nautical miles, creating opportunities for investors willing to bring modern fishing technology, vessels and infrastructure into the sector.

“With investing in fisheries, especially the sea, we will maximise the catch,” he told participants.

Dr Mshenga said Zanzibar’s strategic location also strengthens the commercial case for investment. The islands already possess transport infrastructure that can support exports of fresh fish to international markets, while growing tourism investments are creating increasing demand for seafood products.

He noted that many hotels continue to source fish from outside the country despite the availability of local resources, creating opportunities to strengthen domestic supply chains while expanding exports.

Yet one message repeatedly emerged throughout the discussion: having promising projects is not enough.

A significant challenge lies in turning those projects into investments that financiers are willing to fund.

Climate Finance and Private Sector Specialist at the UNDP Rome Centre, Mr Rohith Subramania, argued that many projects fail to attract financing because they stop at the feasibility-study stage without adequately addressing broader investor concerns.

“Having the potential is not enough, but completing the project development journey is just as critical,” he said.

According to Mr Subramania, financiers increasingly want assurance that environmental, social and climate-related risks have been identified and properly managed before committing capital.

In many cases, feasibility studies focus primarily on engineering aspects while overlooking factors such as environmental impacts, community livelihoods, climate risks and long-term operational requirements.

For Zanzibar, these issues carry particular significance. As an island economy, it faces growing exposure to climate-related threats, including flooding and rising sea levels, both of which can affect major infrastructure investments.

To help bridge that gap, UNDP’s Platform for Investment Support and Technical Assistance (PISTA) has committed $500,000 in technical assistance grants to support Zanzibar’s blue economy projects.

The support will focus on strengthening environmental and social assessments, climate-risk analysis and other studies aimed at making projects more attractive to investors.

Mr Subramania said the goal is to ensure projects are presented to financiers with realistic cost estimates, clearly allocated risks and financing structures that match their commercial realities.

While fisheries infrastructure attracted considerable attention, seaweed farming emerged as another sector undergoing transformation.

Head of the Resident Coordinator’s Office at the United Nations, Ms Shabnam Mallick, described seaweed as one of Zanzibar’s strongest economic assets despite often being overlooked in investment discussions.

The crop is Zanzibar’s second-largest export after cloves and supports approximately 15,000 households, with women accounting for around 80 percent of those involved in the industry.

Yet despite its economic importance, much of the sector remains characterised by small-scale production, limited processing capacity and restricted access to finance.

Ms Mallick said the focus is now shifting towards transforming seaweed from a subsistence activity into a structured and commercially viable industry.

“We are transforming the seaweed sector from a subsistence economy to a more industrial-level discussion,” she said.

Current programmes supported by the United Nations are working to strengthen cooperatives, improve financial literacy, enhance processing capacity, upgrade quality standards and expand market access.

According to figures presented during the session, the global seaweed market is projected to reach approximately $11.8 billion by 2030. Despite producing high-quality seaweed, Zanzibar currently accounts for only a small fraction of global output, highlighting the scale of potential growth.

To unlock that potential, development partners are exploring blended-finance mechanisms that combine grants, concessional funding, guarantees and private investment. Such arrangements are increasingly viewed as critical for reducing investment risks while attracting commercial capital into emerging sectors.

Financial institutions are also positioning themselves to support the transition.

Head of Agribusiness at CRDB Bank Plc, Mr Maregesi Shaaban, told the panel that the lender has already financed 1,027 fisher groups through loans amounting to Sh47 billion, benefiting about 50,000 people in Zanzibar.

The financing has been supported through a special guarantee scheme established in partnership with the Revolutionary Government of Zanzibar, helping small-scale fishers gain access to credit.

Beyond traditional lending, he said CRDB has mobilised funding from international partners, including the European Investment Bank, and introduced financing instruments aimed at supporting sustainable investments, including a Green Bond programme that he said has a ticket size of $300 million, alongside Sharia-compliant financing products.

“We have resources. We need to transform in terms of technology advancement. We need to invite investors with muscles to come and invest,” Mr Maregesi said.