The event marked several milestones, including the first distribution of Sukuk dividends to investors, the launch of an Islamic-compliant social security scheme, and a celebration of ongoing economic and financial reforms.
Unguja. President Hussein Ali Mwinyi has said Zanzibar is now financing a significant share of its operations using domestic resources, crediting improved digital systems and revenue management for the shift toward greater self-reliance.
Speaking during an official event at the State House grounds in Zanzibar, Dr Mwinyi highlighted that the introduction of the Zanzibar Sukuk—a Sharia-compliant government bond launched in 2024—has significantly contributed to investor confidence and opened new avenues for private sector involvement in national development.
The event marked several milestones, including the first distribution of Sukuk dividends to investors, the launch of an Islamic-compliant social security scheme, and a celebration of ongoing economic and financial reforms.
“We have implemented digital tax collection systems that have reduced revenue leakages, increased efficiency, and simplified compliance for taxpayers,” said Dr Mwinyi.
He noted that Zanzibar is now experiencing tangible results from the reforms, including economic growth surpassing 7.2 percent annually.
Dr Mwinyi said the financial and economic reforms introduced over the past five years have laid the foundation for building a more inclusive economy—one that actively involves citizens in the country’s growth.
Stronger policies, growing confidence
He attributed the positive momentum to sound fiscal policies, modern administrative systems, and prudent public finance management.
Among the key achievements highlighted were: A *278 percent increase in domestic revenue over the past five years, controlled inflation, remaining at single-digit levels, plus accelerated growth in key sectors such as services, tourism, agriculture, and fisheries
Dr Mwinyi underscored that these reforms were underpinned by principles of accountability, transparency, and the strategic use of modern technology.
Regarding the Sukuk, he said its successful rollout and now the first round of investor payouts demonstrate the government’s effectiveness in managing its financial obligations.
“The Sukuk has enabled the government to fund various strategic projects, build trust among investors, and pave the way for more robust private sector participation,” he said.
“This marks a new financial era for Zanzibar, placing us on the global map of Islamic finance. We have every reason to celebrate and thank all those who played a role in making this a success.”
Dr Mwinyi also announced the launch of an Islamic insurance system, developed through the Zanzibar Insurance Corporation (ZIC), to support equitable access to healthcare and social protection services.
He said the initiative has already started to ease access to healthcare, with health centres and hospitals receiving timely funding and citizens enjoying more reliable medical services.
In addition, the government has restructured the national social security system to ensure pensions are paid on time, contributions are transparently managed, and members receive tangible benefits.
Digital systems are being deployed to register both public and private sector employees, providing coverage against economic challenges such as old age, illness, and disasters.
He added that the new Sharia-compliant social security scheme, administered by the Zanzibar Social Security Fund (ZSSF), will allow investments in Islamic-compliant sectors, including enabling citizens to save and plan for Hajj (pilgrimage).
Minister of State in the President’s Office (Finance and Planning), Dr Saada Mkuya Salum, praised President Mwinyi for steering bold and innovative reforms.
“When he assumed office, the financial management system was not performing well. His forward-thinking leadership has brought about remarkable transformation,” she said.
Aboud Hassan Mwinyi, the Deputy Permanent Secretary in the same ministry, provided an overview of the government’s financial transformation over its five-year term. He highlighted that domestic revenue had increased significantly, rising from Sh671 billion to Sh2.9 trillion. At the same time, the central government budget expanded from Sh1.5 trillion to Sh6.9 trillion.
Mwinyi also noted a marked shift in spending priorities, with the share of the budget allocated to development projects increasing from 24 percent to 65 percent. Additionally, the country's Gross Domestic Product (GDP) grew from Sh4 trillion to Sh6.5 trillion during the same period.
“These figures reflect the scale of the reforms undertaken and their impact on national development,” he said.
