ZANZIBAR: PRESIDENT Samia Suluhu Hassan has said that favourable investment climate and improved governance, notably the reduced bureaucracy and legal reforms, continue to attract investors to Tanzania.
The Head of State made the remarks yesterday during the opening of Bawe Island the Cocoon Collection, owned by Bawe Retreat Limited, as part of the ongoing celebrations marking the 61st anniversary of the Zanzibar Revolution.
She said that the Bawe Island project is the third investment by Bawe Retreat Limited in Zanzibar. The company’s previous investments include the Gold Hotel in Nungwi and Prison Island.
“This is an indication that the investors are attracted to Tanzania’s favourable investment environment, improved governance, and the absence of bureaucracy and legal reforms,” Dr Samia said.
The President added: “I firmly believe that the decision to make this third investment is based on the beauty and appeal of our islands, as well as the great confidence they have in the government and our good policies.”
The investors have invested a total of 42 million US dollars in Bawe Island, including investments in solar power generation and desalination of seawater for use in the hotel. Bawe Island the Cocoon Collection is one of 15 investment projects located on the small islands of Zanzibar.
The President expressed her gratitude to the project owners for implementing the project and fulfilling their commitments in accordance with the agreements made with the Zanzibar government.
“I am pleased to see such a large investment completed within the set time frame and in compliance with all the necessary guidelines and requirements for small island investments,” she said.
President Samia also said that leadership involves foresight, citing Zanzibar President Dr Hussein Mwinyi’s vision of leasing small islands, including Bawe Island for the benefit of the citizens.
She highlighted that the Bawe Island project brings numerous advantages to Tanzanians, including the creation of 400 jobs, both during construction and operational phases, saying the project will also contribute to national revenue through taxes and further promote Zanzibar’s name on the global stage.
Dr Samia acknowledged that the announcement of island leases initially met with resistance from the public saying it was impossible, but today no one regrets the project on Bawe Island.
The President outlined several initiatives aimed at boosting tourism and strengthening the economy through port development and the blue economy, including investments in Malindi container port, Maruhubi dry port, Fumba container port and Pemba’s container port.
She also mentioned the ongoing investment in gas infrastructure at Mangapwani and several other planned developments, including the completion of Mangapwani port, new ports in Shunga and Wete in Pemba and the construction of the Kizimkazi port.
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Moreover, she stressed the importance of improving airport infrastructure, including the development of Pemba Airport and Terminals 1 and 2 at Amani Abeid Karume International Airport in Zanzibar.
President Samia commended Zanzibar Investment Promotion Authority (ZIPA) for its effective management of investments in the islands and the country at large.
She noted that investment in the islands is a new venture, and called for continuous public education to ensure that citizens understand the importance of island investments. She urged residents who rely on the islands for social activities to cooperate with both the government and investors for the broader benefit of the country.
“All these achievements are a result of past revolutionary leaders who worked together to fight for the rights of Zanzibar’s people, and also reflects the contributions of the Revolutionary Government of Zanzibar in all its phases,” Dr Samia said.
“In this period, we are reminded of the goal and purpose of the Zanzibar Revolution, which aimed to eliminate discrimination, bring development to the people and improve their living conditions,” she added.
On his part, President Mwinyi gave a three-month deadline to all investors who have leased islands but have not started construction, urging them to begin construction otherwise, the government will take back the islands and allocate them to more capable investors.
Dr Mwinyi noted that the Zanzibar government has leased 16 islands for investment, with Bawe Island being the first to be launched.
“These investors are not only investing but are also supporting local fishermen who previously used the island for fishing, by building kitchens and purchasing fish from them,” Dr Mwinyi said.
He encouraged Zanzibaris to pursue education and develop skills so that they can benefit from employment opportunities in hotels being built on the islands, adding that the government of Italy has pledged to assist Zanzibar with 5 million euros to build the capacity of Zanzibaris, enabling them to find jobs in Zanzibar’s hotels.
He added that the investment will expand the market for local products, including fish harvested from the island and will also increase the number of tourists, which is a key sector of the country’s economy.
