Zanzibar Unveils Ambitious Revenue Strategy with Sh6.527 Trillion Budget Target for 2025/26
Zanzibar’s Ministry of Finance and Planning has announced an aggressive economic strategy, targeting a remarkable 33 percent revenue increase to Sh6.527 trillion in the upcoming fiscal year. The bold financial plan focuses on expanding domestic revenue sources, enhancing tax administration, and implementing innovative financing models.
Key Revenue Enhancement Strategies:
– Zanzibar Revenue Authority (ZRA) set to collect Sh1.257 trillion, a significant 49 percent increase from the current year
– Implementing comprehensive reforms to maximize revenue collection across government departments
– Exploring alternative financing mechanisms including Sukuk (Islamic bonds) and Public-Private Partnerships
Strategic Institutional Developments:
The government is establishing the Zanzibar Institute of Financial Administration (ZIFA), aimed at producing globally competitive financial professionals. With an allocated budget of Sh915 million, ZIFA will focus on curriculum updates and recruiting 80 new staff members.
Major Budget Allocations:
– Sh707 billion dedicated to flagship programmes and development projects
– Sh210 billion earmarked for land compensation
– Sh312 billion allocated for debt servicing
– Sh32.5 billion directed towards the Boosting Inclusive Growth in Zanzibar (BIG-Z) programme
Challenges and Outlook:
Budget committee reviews highlight existing revenue collection challenges, with current fiscal year collections reaching only 42 percent of the annual target. The ministry remains committed to intensifying revenue mobilization strategies and ensuring fiscal discipline.
Future Vision:
The government plans to draft the Zanzibar Development Plan (ZADEP 2026–2031), emphasizing inclusive growth, gender-responsive budgeting, and comprehensive human development across the islands.
