Zanzibar to mandate CSR contributions amid expanding investment landscape

Mwandishi wa Habari

Mwananchi

Unguja. Zanzibar is finalising regulations that will compel investors to fulfill their corporate social responsibility (CSR) obligations in the areas where they operate, the government said, while at the same time maintaining a supportive environment to attract both local and foreign investment.

The Second Vice President of Zanzibar, Mr Hemed Suleiman Abdulla, said the government recognises the private sector’s contribution to economic growth and investment promotion, and will therefore ensure a conducive environment that continues to draw investors to the Isles.

Mr Abdulla made the remarks yesterday, during the launch of the Matemwe Attitude Hotel in Kijini, North Unguja Region, as part of celebrations marking the 62nd anniversary of the Zanzibar Revolution.

He said a strong and stable investment sector has encouraged investors to expand their footprint in Zanzibar, contributing significantly to job creation for local residents and boosting economic growth in surrounding communities.

He noted that the government’s efforts have yielded positive results, including an increase in investment projects across key sectors such as tourism, construction and energy, creating numerous employment opportunities.

“Government statistics show that more than 588 investment projects have been registered over the past five years, valued at about $6.9 billion, and have created over 28,695 jobs for locals,” Mr Abdulla said.

He said he was encouraged by the hotel investor’s commitment to prioritise the welfare of surrounding communities by improving the local environment and directly supporting community development initiatives to enhance livelihoods in Kijini and the North Unguja Region as a whole.

Mr Abdulla reaffirmed the government’s commitment to maintaining an investor-friendly environment and urged citizens to cooperate with investors while safeguarding Zanzibar’s culture and traditions.

He also called on employees at the newly launched hotel to perform their duties diligently, with integrity, and in compliance with labour laws and their employers’ directives.

Touching on the Zanzibar Revolution, Mr Abdulla urged citizens to continue upholding peace and unity, and to protect and cherish the 1964 Zanzibar Revolution to sustain national development.

Meanwhile, the Minister for Labour and Investment, Mr Sharif Ali Sharif, said the government, through his ministry, is preparing CSR cooperation and accountability regulations that will require investors to engage more closely with communities hosting their projects so that residents can benefit directly from investments in their areas.

He said although the CSR law was enacted in 2023, it has yet to take effect due to the lack of regulations and guidelines.

“We want to put in place regulations that will compel investors to support communities through services such as education, water and other social needs. These regulations are in the final stages,” Mr Sharif said.

He added that he would ensure staff at the Zanzibar Investment Promotion Authority (Zipa) work efficiently and professionally to the required standards to further strengthen the investment sector.

For his part, the hotel’s managing director, Mr Ravian Unthiah from Mauritius, said the decision to invest in Zanzibar was influenced by the prevailing peace and stability.

He cited a favourable investment climate and the willingness of local communities to cooperate with investors as additional factors, and pledged to support environmental conservation and the provision of essential social services.

Mr Unthiah said the project is expected to create more than 190 jobs for residents of Kijini and the wider North Unguja Region.

He added that employees have already received training and skills development aligned with their respective roles to ensure high-quality service delivery to both local and international guests.

He noted that the Matemwe Attitude Group operates more than nine hotels of different categories and, in partnership with the government, aims to contribute to economic growth and support surrounding communities through various socio-economic initiatives.

Zanzibar Investment Promotion Authority (Zipa) Director General Mr Saad Saleh Mohamed said the investment had cost $22 million, equivalent to more than Sh56 billion.