ZANZIBAR :
In 2025, Zanzibar’s economy is moving with a quiet confidence that reflects both stability and ambition. Current indicators point to growth of just over seven percent, positioning the archipelago among the stronger-performing regional economies this year. This momentum is not accidental; it is the outcome of sustained investment, improved connectivity, and a services sector that continues to expand in depth and reach.
Tourism remains the backbone of economic activity, but in 2025 it is tourism with greater structure. Higher value arrivals, longer average stays, and improved air access have strengthened earnings across hospitality, transport, and trade. The impact extends well beyond hotels and resorts, supporting small businesses, artisans, logistics providers, and food producers across both Unguja and Pemba.
Alongside tourism, construction and infrastructure development have emerged as key drivers of growth. Public and private sector projects; ranging from roads and ports to utilities and urban development are stimulating employment and reinforcing domestic demand. These investments are also laying the groundwork for long-term productivity, improving the ease with which goods, services, and people move across the islands.
The services sector continues to broaden, with transport, retail, and professional services recording steady expansion. Increased economic activity has translated into stronger government revenues, enabling higher public spending on social services and strategic development programs. Importantly, inflation has remained relatively contained, helping preserve purchasing power and maintain macroeconomic stability.
Zanzibar’s external position has also improved in 2025. Rising foreign exchange earnings from tourism and services have strengthened the current account, providing a buffer against global volatility and supporting currency stability. This has enhanced investor confidence at a time when many emerging economies face tightening financial conditions, a true testament of momentum with intention.
