Zanzibar Unveils Bold Budget Strategy: 31% Expenditure Increase to Boost Economic Growth
Zanzibar has announced an ambitious budget framework for the 2025/26 financial year, projecting a significant 31 percent increase in expenditure to 6.8 trillion shillings. The government’s strategic financial plan focuses on driving economic transformation through innovative initiatives and sustainable development.
Key Budget Highlights:
Revenue Generation and Financial Strategy
– Total budget of 6.8 trillion shillings, up from 5.182 trillion in the previous year
– 2.104 trillion shillings expected from domestic sources
– 2.460 trillion shillings to be sourced through internal and external loans
– External budget support dependency projected to decrease to 6.1 percent
Strategic Economic Priorities
– Blue Economy development
– Advanced economic reforms
– Infrastructure enhancement
– Human development and social welfare
Major Investment Focuses:
– 471.17 billion shillings allocated for infrastructure development
– Significant investments in marine infrastructure, including:
– Integrated port construction at Mangapwani
– Port expansions at Mkoani and Shumba
– New passenger terminal at Mpigaduri
– Fishing port establishments
Economic Transformation Initiatives
– 207.22 billion shillings dedicated to economic development
– Focus on digital infrastructure
– Creating economic and industrial free zones
– Enhancing marine resources
– Acquiring fishing vessels
– Establishing seafood processing facilities
The government’s comprehensive approach aims to attract both local and foreign investments while ensuring sustainable economic growth and improved public services.
