Zanzibar’s economic system is doing nicely however can do higher, particularly by growing its overseas direct funding to spice up its blue economic system potential.
The island has big agriculture and tourism potential that’s but to be utilized successfully. Now, Zanzibar President Hussein Mwinyi needs the nation’s diplomats to do extra to draw overseas direct funding.
Zanzibar President Mwinyi not too long ago aired his views throughout talks with newly appointed Overseas Affairs and East Africa Cooperation Minister Dr Stergomena Tax, emphasizing the necessity for what he described as financial diplomacy.
Based on President Mwinyi, the Zanzibar economic system can do higher if the nation’s diplomats turn into extra proactive in attracting overseas direct funding. President Mwinyi mentioned Zanzibar’s economic system stands to realize from financial diplomacy ought to its ambassadors sway traders in its favour.
“We want financial diplomacy… this could embrace wooing traders to come back and make investments. It is vital for us contemplating that Zanzibar depends closely on companies within the tourism business for its revenue,” President Mwinyi urged the ambassador.
The recommendation, coming from a president, is, as a matter of truth, an govt order, and the newly appointed diplomat didn’t let President Mwinyi down.
Ambassador Tax seized the chance to pledge to position Zanzibar’s economic system on the pedestal in his subsequent go to to China, the place he might be accompanying President Samia Suluhu Hassan.
” We’ll promote Zanzibar and Tanzania typically in order that traders can come to take a position, particularly within the island’s blue economic system,” she promised President Mwinyi.
In response, Minister Tax promised to implement the directives, together with consideration of Zanzibar in all dealings that regard the Union authorities and tasked ambassadors overseas to give attention to financial diplomacy and guarantee Tanzanians have sufficient details about the ministry and what’s going on in fast-tracking of the EAC integration.
A blue economic system: Zanzibar economic system overview
Typically talking, regardless of world turmoil, together with setbacks by the Covid-19 pandemic, Zanzibar’s financial efficiency has been pretty steady. Zanzibar’s economic system is split into three main sectors, service (tourism, commerce, transportation and storage, and different personal and public companies); industries (manufacturing, building, and mining); and agriculture (together with forestry, crops, livestock, and fishing).
Based on authorities, ‘the contributions of those sectors to GDP are 51.7 per cent, 20.1 per cent, and 18.4 per cent, respectively, for companies, agriculture, and industries respectively.’
A blue economic system, in line with the World Financial institution, is the sustainable use of assets for financial progress, and improved livelihoods and jobs, whereas preserving the well being of the ocean ecosystem. Typically talking, a blue economic system refers to all financial actions associated to oceans, seas and coasts.
To advertise its blue economic system, Zanzibar not too long ago began leasing out small islets surrounding the primary archipelago and has already pocketed US$15 million upfront leasing charges for some ten islets.In his funds speech earlier this yr, the Island’s second Vice President, Hemed Suleiman Abdulla, Zanzibar’s economic system is predicted to develop by 6.8 per cent this yr, up from 5.1 per cent in 2021
Equally, export earnings within the Islands elevated 138 per cent from an approximated US$28.1 million in 2020 to US$66.6 million in 202 because of elevated export of clove and seaweed and naturally, the leasing of islets.
To additional increase its blue economic system, Zanzibar has put aside a number of Particular Financial Zones (SEZ), Free Financial Zones (FEZ) and Export Processing Zones (EPZ). These are strategic coverage strikes to draw traders since, apart from delicate areas like meals and medicines, traders within the EPZ or SEZ usually are not required to get any further licensing, making establishing a enterprise a lot simpler, quicker and extra reasonably priced.
These insurance policies assist improve funding within the blue economic system and appeal to overseas direct funding (FDI) via the enlargement of exports.
As identified, traders working in these particular zones get pleasure from lean administrative procedures and decrease working prices. Zanzibar already has 5 free financial zones to extend funding in its blue economic system.
Because the blue economic system grows, so does tourism. In 2021, Zanzibar noticed a surge in vacationer visits because the quantity went over 394,200 vacationers, up from 260,600 in 2020.
Zanzibar can also be constructing nearer ties with the United Arab Emirates (UAE), whilst different nations within the East African Neighborhood (EAC) are shedding favour with the rich UAE. Solely not too long ago, the UAE introduced a visa ban on a number of EAC nations, together with Uganda and Rwanda, all shut neighbours to Zanzibar.
UAE locations visa ban on 20 African nations
Whereas ties with Zanzibar and mainland Tanzania are rising with the latest signing of agreements to finish double taxation, amongst different offers, authorities within the United Arab Emirates (UAE) not too long ago introduced a Dubai visa ban on 20 African nations.
They embrace Uganda, Rwanda, Ghana, Sierra Leone, Sudan, Cameroon, Nigeria, Liberia, Burundi, Republic of Guinea, Gambia, Togo, Democratic Republic of Congo, Senegal, Benin, Ivory Coast, Congo, Burkina Faso, Guinea Bissau, Comoros and the Dominican Republic.
“Any functions from the above-mentioned nations might be despatched again or cancelled,” the UAE authorities warned commerce companion authorities together with journey brokers, urging them to reject all associated functions.
The rationale given for the ban is elevated visa time period violations by individuals from the mentioned nations. The UAE authorities defined that individuals from these nations are utilizing 30-day visas to Dubai to remain and work within the nation illegally.
Earlier than this most up-to-date transfer, authorities in UAE launched a requirement that every one migrant staff from mentioned nations current police certificates of excellent conduct earlier than coming into the nation, however even that didn’t assist.
The UAE authorities additionally revealed that greater than 600 Ugandans who have been dwelling in UAE illegally have been latest. Yearly, the United Arab Emirates (UAE), significantly Dubai, has turn into a favorite vacation spot for Africa’s migrant labour as hundreds search for better-paying jobs within the UAE to enhance their lives.
Nevertheless, with the visa ban, migrant labour to the UAE will see a pointy drop which can, to some extent, permit migrant staff from nations that also have the privilege to seek out jobs way more simply.