Zanzibar Banks Collaborate to Boost Economic Growth with Strategic Sh185 Billion Loan
Unguja – Local financial institutions have signed a strategic agreement to support Zanzibar’s economic development through a significant syndicated loan aimed at driving sustainable growth and recovery.
The first tranche of the loan, valued at Sh185 billion, represents a critical financial initiative to stabilize and accelerate the region’s economic performance. Government officials highlighted that this funding will help boost economic growth from the current 7.3 percent to over 7.4 percent.
The loan comes at a crucial time, particularly after the economic challenges posed by pandemic-related disruptions that caused a 1.2 percent economic contraction in 2022. Key sectors like tourism, severely impacted during global market disruptions, are set to benefit from this strategic financial intervention.
Government finance leaders emphasized that the syndicated loan is a key component of the development budget, targeting a Sh1.7 trillion fiscal investment. The funding will facilitate the completion of ongoing socio-economic projects and finance new initiatives designed to ensure long-term prosperity.
Strategic priorities for the loan include supporting critical sectors such as:
– Fisheries
– Maritime trade
– Energy
– Tourism
– Infrastructure
The partnership aims to advance Zanzibar’s Blue Economy strategy, unlocking the full potential of maritime resources and creating sustainable economic opportunities for the region.
With this collaborative financing approach, local financial institutions are positioning themselves as crucial development partners committed to driving meaningful economic transformation in Zanzibar.
