Zanzibar scouting for investment at Davos

Zanzibar, a beautiful archipelago off the coast of East Africa, is making waves at the prestigious World Economic Forum in Davos as it aggressively woos potential investors. The Minister of State for the President’s Office, Economy & Investments, Mudrick Soraga, spoke exclusively with CNBC Africa about the country's ambitious plans for attracting investments and driving economic growth. Soraga highlighted the comprehensive reforms and infrastructure developments underway in Zanzibar, aimed at creating a conducive business environment and diversifying the economy beyond its traditional reliance on tourism. One of the key themes of Soraga's discussion was the significant transformation taking place in Zanzibar's economy. The government, under the leadership of Dr. Hussein Alimwinyi, has been dedicated to implementing reforms that enhance the business climate and attract investors. These reforms include the introduction of the Zanzibar Investment Act for 2023, which offers a wide range of incentives, both tax and non-tax related, to prospective investors. The act also prioritizes the advancement of the blue economy, digital economy, fintech, ICT, and the fostering of a startup ecosystem on the islands. Leveraging on the vast opportunities presented by the diaspora community has also been a crucial aspect of the new investment strategy. Soraga emphasized the need for Zanzibar to diversify its economy, especially in the wake of the challenges posed by the COVID-19 pandemic. Traditionally reliant on tourism, which accounts for 40% of total investments, the country is now looking towards sectors like the blue economy and fisheries for growth. The government is actively promoting investments in small islands, aimed at attracting high-value tourists and bolstering the fisheries industry. Incentives are being offered for the development of storage facilities, value addition processes, and packaging infrastructure in the fisheries sector, signaling Zanzibar's commitment to sustainable economic development. During his interactions at Davos, Soraga noted a high level of curiosity and excitement about Zanzibar among potential investors. Many were intrigued by the island's potential and the opportunities it offers. The Minister expressed optimism about the positive feedback received and the growing interest in Zanzibar as an investment destination. He highlighted that the country's ongoing infrastructural projects, such as road construction, airport upgrades, and modernization of the electrical grid, are indicators of the government's commitment to fostering growth and attracting investments. As Zanzibar positions itself as a promising investment hub in East Africa, the spotlight is on its forward-thinking policies, strategic reforms, and attractive incentives for investors. The country's proactive approach to economic diversification and infrastructure development sets a solid foundation for sustainable growth and prosperity. With a renewed focus on innovation, entrepreneurship, and strategic partnerships, Zanzibar is poised to unlock its full economic potential and emerge as a beacon of investment opportunity in the region.