Zanzibar Launches Groundbreaking Sh1.1 Trillion Sukuk Bond to Accelerate Development Projects
Zanzibar’s President Dr. Hussein Mwinyi has officially unveiled a pioneering Sukuk bond aimed at raising Sh1.1 trillion to fuel critical infrastructure and economic development across the region. This innovative financial instrument marks a significant milestone in the island’s economic strategy.
The Sukuk bond, designed to comply with Islamic financial principles, offers a unique alternative to conventional financing methods. Unlike traditional bonds, this instrument avoids interest payments, instead focusing on ethical investing and profit-sharing mechanisms.
Key development projects set to benefit from the bond include:
– Construction of Terminal 4 at Abeid Amani Karume International Airport
– Housing developments in Unguja and Pemba
– Modern fish market construction
– Acquisition of large fishing boats
President Mwinyi emphasized that the current budgetary system cannot fully support ongoing development initiatives, necessitating innovative funding approaches. The bond represents the first of its kind in the East African Community, opening investment opportunities to both Muslim and non-Muslim investors with a minimal entry point of Sh1 million.
“This is a strategic move to unlock economic potential and provide accessible investment opportunities,” the President stated. The initiative aims to attract both local and diaspora investors, encouraging participation in Zanzibar’s economic growth.
Infrastructure Minister Dr. Khalid Mohamed highlighted the bond’s potential to transform the region’s financial landscape, positioning Zanzibar as a leader in faith-aligned financial products. “This bond will set an example for other African countries and create new pathways for economic development,” he noted.
The launch signals a significant step towards inclusive and principled economic development, inviting investors to participate in Zanzibar’s promising future.
