This growth represents a structural shift rather than gradual progress. Between November 2020 and September 2024, more than 350 high-cost projects worth between $5.5 billion and $6.9 billion were registered in the region. The momentum continues; only in the period from 2021 to 2022, 181 projects worth $3.056 billion were registered. This trend continued in 2026, when 45 new projects were registered in the first 100 days, indicating a high investor appetite. Guided by its strategic focus on the «blue economy», including tourism, maritime transport, manufacturing and real estate, Zanzibar aims to register at least 150 projects per year.
The economic impact is tangible: 20,000 to 28,000 jobs have been created, government revenues have been increased, and necessary infrastructure such as schools, roads, and healthcare has been funded. The hospitality and real estate sector has proved particularly successful, attracting global brands seeking to enter this growing luxury market.
However, this growth is facing a systemic threat: constant bureaucratic delays and inconsistent issuance of permits. For investors, time is crucial; delays increase the cost of the project and undermine trust. In a globally competitive market, predictability and regulatory clarity are essential to maintain Zanzibar's advantages.
Zanzibar can turn to successful partners for solutions. Rwanda, for example, has become one of the most effective investment destinations in Africa thanks to the Rwanda Development Board. This single window system allows investors to receive final approval within a few days, rather than months. Similarly, Mauritius and Seychelles use centralized regulatory bodies such as the Mauritius Economic Development Board to minimize bureaucratic delays, ensure legal certainty, and strengthen interagency cooperation.
A common success factor for these countries is a unified, coordinated government approach that eliminates duplication of authority. To maintain its current trajectory, Zanzibar must adjust its systems accordingly. Strengthening a single investment center with binding powers, clarifying the role of regulators, and meeting strict approval deadlines are vital steps. In addition, the introduction of digital tracking systems will increase transparency and reduce arbitrary delays.
Ultimately, Zanzibar stands at a crossroads. By combining its ambitious investment goals with effective regulation, the archipelago can strengthen its status as a leading hub in the Indian Ocean. However, failure to overcome these bureaucratic hurdles may force investors to look elsewhere for opportunities.
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