IMF commends Samia, Mwinyi for prudent Covid-19 relief funds use

ZANZIBAR: THE International Monetary Fund (IMF) has commended President Samia Suluhu Hassan and Zanzibar President Dr Hussein Mwinyi for the prudent and transparent use of Covid-19 relief funds, which has earned Tanzania and Zanzibar global recognition for sound fiscal management.

The praise was revealed by the Zanzibar Minister of State in the President’s Office (Finance and Planning), Dr Saada Mkuya Salum, during a ceremony held at State House, Zanzibar, to honour President Mwinyi’s economic and financial reforms.

The event also marked the first distribution of dividends to investors in the Zanzibar Sukuk and the launch of a new Sharia-compliant social security scheme.

Dr Mkuya noted that the IMF praised both leaders for the effective utilisation of 567.25 million US dollars received by Tanzania in 2021 as part of Covid-19 support, with Zanzibar receiving 100 million US dollars, 20 per cent of the total package.

“We must thank President Samia and Dr Mwinyi for their responsible use of these funds, which have directly benefited our people and boosted confidence in our governance,” said Dr Mkuya, urging the public to ignore politically motivated misinformation about the IMF funding.

She said that Zanzibar’s current administration has improved revenue collection and public service delivery, warning citizens against opposition claims designed to discredit the government’s reform agenda.

In his address, President Mwinyi said the economic and financial reforms implemented under his leadership over the past five years have laid a strong foundation for a participatory economy that empowers citizens and ensures shared prosperity.

He said that Zanzibar’s economy is now growing at over 7.2 per cent annually, supported by improved policies, digitised financial systems, and enhanced oversight of public funds.

“These reforms are rooted in accountability, transparency, and the strategic use of modern technology,” said Dr Mwinyi.

Key achievements include a 278 per cent increase in domestic revenue, sustained singledigit inflation, and significant growth in the tourism, agriculture and fisheries sectors.

Dr Mwinyi also pointed to the successful launch of the Zanzibar Sukuk in 2024, which attracted both local and international investors.

In 2025, the government issued its first payments to Sukuk investors, demonstrating Zanzibar’s growing credibility in Islamic finance.

“This is a financial milestone that positions Zanzibar on the global Islamic investment map,” he declared.

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President Mwinyi said that his administration’s reforms go beyond finance, reaching into healthcare, social protection, and insurance.

Through the Zanzibar Insurance Corporation (ZIC Takaful), the government has launched an Islamic insurance model aimed at increasing economic participation.

He also introduced the Zanzibar Health Services Fund (ZHSF), which ensures equitable access to quality healthcare for all citizens, regardless of income.

“Health facilities now receive timely funding, and every Zanzibari is assured of medical care,” said Dr Mwinyi, dismissing opposition criticism as baseless. “Let them talk — we will not waste time responding to fabricated stories.”

Dr Mwinyi said that his administration has modernised the tax system through the Zanzibar Revenue Authority (ZRA) by introducing digital collection platforms that have reduced revenue leakages and improved efficiency.

He also announced the formation of the Economic Empowerment Authority, which provides interest-free loans, training, and startup capital to youth and women entrepreneurs.

“This is how we build an inclusive economy, one where every Zanzibari plays a role in national development,” he said.

Both President Samia and Dr Mwinyi received special awards in recognition of their leadership in financial transformation, particularly for spearheading the Zanzibar Sukuk and the Sharia-compliant Social Security Scheme (ZSSF Sharia Scheme).

Joining the event via video from Pemba, Second Vice-President Hemed Suleiman Abdulla congratulated Dr Mwinyi for his “historic” reforms, especially those benefiting the Pemba economy and expressed confidence in his leadership for the next term.