Despite challenges in transforming all sectors of the Zanzibar economy, Dr Mwinyi is confident his administration will not leave any debt behind
Unguja. Zanzibar President Dr Hussein Mwinyi has assured citizens that his government will not leave behind debt once he leaves office, attributing his administration’s confidence in borrowing to the creation of a special repayment account.
Speaking at State House in Zanzibar on September 2, 2025, during a meeting with journalists from media houses in both Zanzibar and Mainland Tanzania, Dr Mwinyi said the arrangement had given his government fiscal credibility while allowing the implementation of major development projects.
“When I step down, I will not leave even a single cent of government debt,” he said. “Initially, we deposited $10 million monthly into the account, but when projects grew larger, I ordered the amount raised to $15 million.”
He said the account now accumulates more than $180 million annually, providing the government with a financial cushion for large-scale undertakings.
Revenue growth
Dr Mwinyi recalled that when he took office in 2020, the Zanzibar Revenue Authority (ZRA), then known as the Zanzibar Revenue Board (ZRB), collected just Sh20 billion per month, while the Tanzania Revenue Authority (TRA) collected about Sh25 billion for the Isles.
“Today ZRA is collecting Sh80 billion monthly, while TRA collects more than Sh50 billion for the Isles,” he said, stressing that strengthened revenue mobilisation has boosted Zanzibar’s credibility with lenders.
According to him, nearly all banks now compete to extend credit to the Zanzibar government because of its proven repayment ability.
Major projects
Dr Mwinyi cited flagship projects already underway, including the $300 million Mangapwani Port, a $27 million water project in Unguja North, and a $55 million water project in Unguja South.
He attributed the ability to deliver such high-value projects to strict tax collection, prudent financial management and zero tolerance for misuse of funds.
“When you collect revenues efficiently, you become creditworthy. Responsible borrowing then enables you to implement projects that deliver real value,” he explained.
Peace as foundation
Beyond fiscal reforms, Dr Mwinyi underlined the importance of stability in supporting economic progress.
“The first secret is peace, unity and cohesion. Development is impossible without peace. Even in areas that once faced tensions, there is now calm and harmony,” he said.
Digitisation drive
The President reiterated his ambition to digitise Zanzibar fully. He said preparations, including the establishment of a national data centre and gateway, are already underway to support this vision.
He highlighted the education sector as one area where the digital shift has begun.
A model digital school at Mtakuja is already operational, and 20 more pilot schools are under construction, with a long-term plan for all schools to adopt technology-driven learning. “Digital education will help address the shortage of teachers and prepare our youth for the modern economy,” he said.
Blue economy and water sector
Dr Mwinyi reaffirmed his administration’s commitment to advancing the blue economy, with a focus on tourism, fisheries, maritime transport and broader marine resources.
On water supply, he admitted some challenges remain but stressed that the situation has significantly improved since 2020. “We are implementing major projects which, once completed, will eliminate shortages,” he said.
Improved performance in education
He also pointed to remarkable improvements in national examinations. “In the past, eight of the bottom ten schools in results came from Zanzibar.
Now that is no longer the case. Our Form Six pass rate has reached 98 percent,” he said. Dr Mwinyi acknowledged that Zanzibar still faces shortages of skilled professionals, but said the government is addressing this through vocational training schools in every district.
“Youth trained in these institutions will be absorbed into projects under implementation and those still in the pipeline,” he explained.
Procurement processes clarified
Responding to criticism that some projects had bypassed tender procedures, Dr Mwinyi dismissed the claims, clarifying that all procurement adhered to the Public Procurement Act.
“There are three types of tenders: open tenders advertised publicly; restricted tenders involving three pre-selected firms; and single-source tenders given directly to a qualified company. All these are provided for by law,” he said.
He emphasised that in some cases direct selection was unavoidable because local firms lacked the capacity to execute large-scale projects. Dr Mwinyi also defended the government’s collaboration with private firms in service delivery, citing the health sector as an area where the partnership had delivered “significant success.”
Call for peace ahead of elections With elections approaching, Dr Mwinyi urged religious leaders, politicians and the media to prioritise peace in their messaging.
“Each of us—politicians, religious leaders and journalists—must preach peace, unity and harmony. If we do so, we will go through the elections safely,” he said.
