Last Saturday, I had the privilege to present a paper during the annual business council roundtable on behalf of Zanzibar Chamber. The dialogue was chaired by the President of the Revolutionary Government of Zanzibar, his Excellency Dr. Hussein Ali Mwinyi. It involved actors from the private sector and senior government officials, including the Second Vice President of Zanzibar Honourable Hemed Suleiman and various ministers.
My paper "Enhancing Private Sector Engagement in Zanzibar's Blue Economy: Opportunities, Challenges & Steps Forward" disentangled potentials of the blue economy on industry bases, highlighted challenges, including limited access to capital particularly amongst SMEs, skills and tech gaps, and low involvement of local private investors in strategic investments. The existing capital markets inefficiency and other underlying factors make financing cost in Zanzibar, as is the case for Tanzania in general, significantly higher than from developed economies. Consequently, local investors incur a ridiculously high cost of capital when making investments using capital originated domestic capital markets.
What is extremely encouraging and exciting progress is that among steps forward proposed by the paper, the President of Zanzibar has pointed out that the government will facilitate (and invest in) the creation of a special vehicle/investment bank for pooling capital and savings from diverse sources to broaden participation of local investors in strategic investments.Skills Development Levy (SDL) will be earmarked to narrow the existing human capital gaps across key sectors, including the blue economy. Additionally, digital transformation will be among the top priorities to enhance the quality and efficiency of public service delivery and improve the business environment.
My take from this business dialogue is that a lot of work still needs to be taken before the private sector, especially the local investors,
becomes a well functioning engine of Zanzibar's economy. However, the openness and commitment that been shown by the current government of Zanzibar to create a more enabling business environment, bring digital transformation and elevate the role of local investors in transforming Zanzibar's economy is remarkable. It definitely sets Zanzibar in a right trajectory to achieve its development vision. Hamad Hamad Ali Amour
Zanzibar Research Centre for Socio-Economic and Policy Analysis (ZRCP) Ivana Damjanov Said Seif Said Paul Ndungutse , PMP®, PRINCE2®, Agile Jose-Luis Gonzalez Julia Schappert Zahor El Kharousy Haji Haji Hamad Hamad Sarah Moffatt Stephens Arafat Haji Nuhu Saleh Elibariki Shammy Khadija Shariff Kurtis Lockhart Lydia K Joseph Rubambe