Zanzibar seeks new development funding
ZANZIBAR: ZANZIBAR is seeking new and affordable financing sources for major strategic projects, including the Mangapwani Integrated Port, energy expansion and a proposed 10,000-house programme, as the government moves to reduce reliance on conventional loans and government guarantees.
President Dr Hussein Ali Mwinyi said alternative financing mechanisms could help accelerate implementation of strategic development projects while broadening access to development funding.
“We need to explore new and affordable sources of financing for our strategic projects rather than relying solely on conventional loans and government guarantees,” Dr Mwinyi said yesterday during a meeting with Trade and Development Bank (TDB) President and Chief Executive Officer Mr Admassu Tadesse and his delegation at State House, Zanzibar.
He said diversifying financing sources would help Zanzibar secure funding that is aligned with its development priorities and reduce pressure associated with traditional borrowing arrangements.
“We also need to diversify our financing sources and ensure they are aligned with Zanzibar’s development priorities and needs,” he said.
Dr Mwinyi identified the proposed Mangapwani Integrated Port as one of the strategic projects with significant investment potential, saying the government plans to develop it into a transshipment port serving cargo destined for other areas.
The port is expected to include a dry port, oil and gas facilities and grain storage infrastructure, making it an important logistics and trade hub for the islands.
The President also highlighted the energy sector as another key priority, saying increased investment is needed to expand electricity generation and strengthen Zanzibar’s energy self-reliance through renewable energy.
“Investment in energy will be crucial for enhancing energy security and meeting growing demand arising from new development and investment projects,” he said.
In the housing sector, Dr Mwinyi said the government is seeking financing arrangements to support construction of 10,000 housing units and expand access to quality housing.
He added that financing mechanisms are also being explored to enable the Zanzibar Housing Corporation (ZHC) to scale up implementation of housing projects.
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Other areas identified for potential investment include oil and gas, social security fund investments, feasibility studies and strengthening domestic financial institutions to widen access to development finance.
Dr Mwinyi said Zanzibar is ready to work with TDB and use the bank’s regional network to attract investors for productive and strategically important projects.
On his part, Mr Tadesse said TDB has financing instruments designed to support projects at different stages, including project preparation finance, concessional capital, private-sector investment and specialised investment funds.
“TDB has a range of financing mechanisms to meet the needs of projects at different stages, and we assure our close cooperation in advancing the areas agreed upon by both sides,” Mr Tadesse said.
