Pemba, Zanzibar—Zanzibar President Hussein Ali Mwinyi has announced an ambitious plan to transform the island of Pemba into a strategic hub for investment, trade, and inclusive economic growth, positioning the region as a key destination for both domestic and international capital.
Speaking at the opening of the Zanzibar Investment Festival 2025, held at the Free Economic Zone in Mazing’ombe, Micheweni in North Pemba, President Mwinyi outlined the government’s strategy to attract long-term investors across key sectors including tourism, agribusiness, light manufacturing, and strategic industries.
The initiative, he said, is designed to generate sustainable employment, particularly for youth, and raise household incomes through inclusive development.
“The government’s vision is clear: to make Pemba a center of gravity for impactful and sustainable investment,” Mwinyi said.
“We are committed to creating a business environment that not only attracts capital, but ensures that communities benefit directly from the opportunities that come with it.”he added
To support this vision, the Zanzibar government has introduced a range of investment incentives and regulatory reforms.
These include preferential treatment for projects located in Pemba and other smaller islands, with qualifying investments eligible for special strategic status under the Zanzibar Investment Act No. 10 of 2023.
To qualify, projects must either exceed a capital investment of $5 million or $2 million if they create a minimum of 100 jobs for local residents.
Additionally, a new legal provision mandates that investors contribute to local social services in host communities, embedding shared value and social impact at the core of the island’s investment policy.
Mwinyi also highlighted the work of the Zanzibar Investment Promotion Authority (ZIPA) in strengthening institutional transparency and investor confidence.
Recent milestones include the launch of the Zanzibar Investment Magazine, a five-year strategic roadmap (ZIPA Strategic Plan 2025–2030), and an enhanced Electronic Investment Platform aimed at streamlining approvals and improving investor experience.
An Annual Investment Report has also been published to improve visibility into performance and impact metrics.
“These developments underscore our commitment to good governance, data transparency, and efficient investment facilitation,” Mwinyi noted.
The 2025 Investment Festival marks the beginning of what Mwinyi said would become an annual platform for promoting Zanzibar's investment ecosystem.
The 2026 edition of the Zanzibar Investment Summit is scheduled to be held in Unguja, further institutionalizing the event within the region’s economic calendar.
As Zanzibar seeks to diversify beyond tourism and deepen its integration into regional and global value chains, Pemba's emergence as an investment hotspot could become a key pillar of Tanzania’s broader development trajectory.