Low investor response to Zanzibar oil and gas blocks despite Government push

Unguja. Despite government efforts to promote oil and gas exploration and extraction blocks in Zanzibar, the response from prospective investors remains low, the Isles’ blue economy docket has revealed.

The Deputy Minister for Blue Economy and Fisheries, Mr Mboja Ramadhan Mshenga, made the revelation in the House of Representatives on Thursday, February 19, 2026.

He was responding to a supplementary question from Wawi Representative, Mr Bakar Hamad Bakar (ACT–Wazalendo), who sought to know the government’s assessment of the response from companies interested in investing in the sector.

“The response from companies is not encouraging. At present, only one company has expressed interest in investing in oil and gas exploration and extraction on the Isles,” said Mr Mshenga.

In his principal question, Mr Bakar wanted to know the stage reached in the exploration of the resource, noting that citizens were eager to see progress and start benefiting from it.

“The Revolutionary Government of Zanzibar continues to take firm and strategic steps to advance exploration of oil and natural gas resources, to strengthen the economy and enable citizens to benefit through sustainable development,” the deputy minister said.

He explained that the Ministry of Blue Economy and Fisheries, through the Zanzibar Petroleum Development Company (ZPDC) in collaboration with the Zanzibar Petroleum Regulatory Authority (ZPRA), had demarcated 10 blocks: eight offshore and two onshore.

The blocks have been promoted on various national and international platforms targeting oil and gas companies.

Mr Mshenga added that the government, through ZPDC, signed a contract in January 2026 with African Geophysical Services (AGS) of Oman to undertake the acquisition of 3D seismic data in onshore areas to facilitate detailed studies of the Zanzibar basin.

He said completion of the 3D seismic survey would pave the way for the identification of potential drilling sites for exploratory oil and gas wells.