In a historic move, Zanzibar has secured a significant TZS 240 billion loan agreement with CRDB Bank to fund the construction of 23 modern, multi-storey schools across Unguja and Pemba.
This loan, equivalent to 79 million Euros, marks a major step forward for the island’s development, as it is the first time Zanzibar has independently secured such a large external loan without relying on the guarantee of the Government of Tanzania.
The loan will be used to address the region’s pressing educational infrastructure needs. The funds will build state-of-the art schools equipped with modern classrooms, science laboratories, libraries, and technology-driven learning environments.
In addition, the loan will support the purchase of essential equipment such as computers, laboratory tools, and classroom furniture, ensuring that Zanzibar’s education system meets international standards. The project will focus on areas with the greatest need for educational resources and will be completed within the next five years.
This move also signals a significant shift in Zanzibar’s financial independence. Historically, the region relied on either the guarantee of the national government or slow-moving local budgets to fund its development projects.
By securing this loan independently, Zanzibar has demonstrated a growing capacity to attract external funding without needing national guarantees.
This deal was made possible through a partnership between CRDB Bank, Deutsche Bank, and Spain’s CESCE export credit agency, reflecting the importance of both domestic and international financial collaboration.
The TZS 240 billion loan is just the beginning of a broader development vision outlined by President Mwinyi. The government has already identified several other strategic projects that will benefit from similar financing models.
These include the construction of Mangapwani Port, the expansion of Pemba Airport, the development of regional hospitals, and the construction of a modern sports stadium in preparation for the 2027 Africa Cup of Nations (AFCON).
These projects are expected to stimulate the island’s economy by improving infrastructure, creating jobs, and boosting trade and tourism.
Zanzibar’s new approach to financing development marks a critical turning point. With a clear framework for responsible borrowing and a dedicated repayment plan allocating approximately USD 10 million per month for debt servicing Zanzibar is setting a strong example of financial discipline
This loan sets a positive precedent for future investments, demonstrating that the region is poised to attract more international and private sector funding, paving the way for sustainable economic growth and development.