Zanzibar's House of Representatives on June 22, 2026, passed a TZS 8.52 trillion (approximately USD 3.28 billion) budget for the 2026/27 fiscal year, representing a 22.11% increase from the previous year. The budget targets a 7.5% economic growth rate and includes plans to launch a Zanzibar stock exchange, according to the Minister for Finance and Planning, Dr. Saada Mkuya Salum.
The budget prioritizes investments in tourism, the blue economy, and small and medium-sized enterprises (SMEs). It also proposes reducing the Skills Development Levy from 5% to 3% to stimulate job creation and business growth. Revenue collection is projected at TZS 6.8 trillion, with the remainder financed through development partners and domestic borrowing.
The stock exchange initiative aims to provide local businesses with access to capital markets and attract foreign investment. The blue economy strategy focuses on sustainable use of marine resources, including fisheries and aquaculture, to diversify the economy beyond tourism.
Dr. Salum emphasized that the budget aligns with Zanzibar's Vision 2050 development plan, which seeks to transform the archipelago into a middle-income economy. Opposition members raised concerns about the debt sustainability and the feasibility of the growth target given global economic uncertainties.
