Mwinyi orders investor tax shield

ZANZIBAR: ZANZIBAR President Dr Hussein Mwinyi has directed the Ministry of Finance and Planning to put in place tax and fiscal policies that protect local industries from unfair competition, enabling them to operate efficiently and sustainably.

Dr Mwinyi issued the directives while launching the Zan Breed Chicken Farm project in Kitope Village, Unguja North ‘B’ District, during activities marking the 62nd anniversary of the Zanzibar Revolution. He said local industries must be safeguarded through fair tax regimes to prevent them from being overwhelmed by imported products that evade proper taxation.

“It is important to protect our industries through appropriate tax policies so they are not forced to compete with imported goods that are not taxed accordingly. Otherwise, our industries will not survive,” Dr Mwinyi said.

He further said that the inflow of under-taxed imports undermines domestic production, adding that the poultry project will significantly reduce Zanzibar’s reliance on imported chicken products. Dr Mwinyi said Zanzibar has long depended on chicken imports from countries such as Brazil, the United States and Türkiye, but the new facility will enable large-scale local production.

“This is a dream I have spoken about for many years, to have a poultry factory like this. Today, that dream has been fulfilled,” he said.

He said that the project will also serve as a training hub for small-scale poultry farmers, particularly in modern poultry housing, access to affordable chicks, quality feed, veterinary drugs, vaccines and reliable markets.

“These are the key challenges facing local farmers, lack of capital, limited technical knowledge and difficulties accessing chicks, which often have to be sourced from Dar es Salaam and even imported from Malawi,” he said.

Dr Mwinyi assured farmers that the government will facilitate access to financing to help them expand their businesses and adopt modern poultry farming methods, enabling them to increase production and improve livelihoods.

He directed the Ministry of Agriculture to ensure the project directly benefits small-scale poultry farmers so they can grow economically and escape poverty. The President also called on the Zanzibar Investment Promotion Authority (ZIPA) to continue attracting large-scale strategic investments to reduce imports, including dairy cattle and other livestock, by promoting domestic production.

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“We have entrusted ZIPA with government land to allocate for productive investments. They deserve recognition for attracting both local and foreign investors into impactful projects,” he said.

Dr Mwinyi commended the investor behind the poultry project, describing it as a strategic and internationally competitive investment that is rare within the East African region. He reaffirmed the government’s commitment to welcoming investors, particularly in industrial development.

Minister for Economy, Labour and Investment Sharif Ali Sharif said the project area will operate as a free zone, aimed at maximising benefits for investors and consumers. ZIPA Executive Director Saleh Saad Mohammed said the project aligns with government efforts to diversify the economy beyond tourism and strengthen food self-sufficiency.

He said that under the Eighth Phase Government, ZIPA has registered 588 investment projects worth more than USD 6.9 billion, expected to create over 28,000 jobs. Of these, 144 projects valued at USD 2.1 billion are located in the North Unguja Region.