Zanzibar Government Unveils Ambitious 2025/26 Budget Framework
The Zanzibar government has announced its budget framework for the 2025/26 financial year, forecasting a significant 31 percent increase in expenditure, amounting to Sh6.8 trillion. This marks a substantial rise from the previous year’s budget of Sh5.182 trillion.
During the recent 18th meeting of the House of Representatives, Dr. Saada Mkuya, the Minister of State in the President’s Office (Finance and Planning), presented the budget framework on February 26.
Dr. Mkuya emphasized that revenue estimates are informed by planned policy reforms and strategic revenue collection measures, which will be elaborated upon during the budget approval process.
"The government is committed to mobilizing financial resources to support strategic plans that foster economic growth while managing public debt sustainably," she stated. The introduction of a Sukuk bond for the domestic market is designed to enable local entities and citizens to participate in investment opportunities.
A detailed breakdown of the budget reveals that Sh2.104 trillion is expected from domestic sources, while Sh2.460 trillion will be generated through internal and external loans targeted at development projects. Additionally, Sh1.966 trillion is anticipated from development partners, including Sh1.429 trillion in loans and Sh416.64 billion in grants.
Notably, the reliance on external budget support is on a downward trend, reflecting improved domestic revenue collection, with dependence projected at a sustainable 6.1 percent for the 2025/26 financial year.
The government’s strategic initiatives for the upcoming year will focus on harnessing the Blue Economy, advancing economic reforms, enhancing infrastructure, and promoting human development and social welfare. Efforts will include policies to improve marine-based industries, such as seafood processing and marine tourism, along with a Sh471.17 billion allocation for infrastructure development.
Key infrastructure projects will feature the construction of an integrated port at Mangapwani, expansions of Mkoani and Shumba ports, and the establishment of fishing ports at Shumba and Kizimkazi. Additionally, investments in marine tourism and the development of transport infrastructures, including sea taxis, are anticipated.
Economic transformation remains a government priority, with plans to enhance digital infrastructure and establish industrial and economic free zones to attract local and foreign investments. An investment of Sh207.22 billion has been allocated for initiatives enhancing marine resources, fishing vessels, and seafood processing facilities.
The government is equally focused on improving transport and energy systems, particularly in tourist areas, and on increasing agricultural productivity through sectoral reforms and the promotion of alternative crop cultivation for export.
