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  • Government of Tanzania

Zanzibar plans 17% spending increase to drive blue economy growth

  • [PRESSWIRE] ZANZIBAR, Tanzania – 18 February, 2026 — Zanzibar plans to increase public spending by 17.7 per cent in the upcoming fiscal year, proposing an 8.27 trillion Tanzanian shilling budget aimed at accelerating infrastructure expansion, industrial revival and Blue Economy development.

Finance Minister Juma Malik Akili presented the budget to the House of Representatives, outlining targets that include 7.5 per cent economic growth, inflation around five per cent and a fiscal deficit below three per cent of GDP.

The spending plan prioritises road upgrades in Unguja and Pemba, port development at Mangapwani, airport modernisation and expanded electricity distribution networks. Investments are also earmarked for sports infrastructure ahead of the 2027 Africa Cup of Nations, which Tanzania will co-host.

Central to the strategy is the Blue Economy — a framework focusing on marine resource management, fisheries, aquaculture, seaweed farming and coastal tourism. Officials say value addition and export-oriented production will be key to raising incomes and reducing vulnerability to external shocks.

The government also plans to revive dormant factories, expand free economic zones and attract private investment into agro-processing and light manufacturing.

Public debt currently stands at 36.29 per cent of GDP, a level authorities describe as sustainable. Financing will combine domestic revenue, concessional loans, commercial borrowing and development partner support.

Zanzibar’s long-term development blueprint, Vision 2050, aims to achieve upper-middle-income status and position the archipelago as a competitive regional services and logistics hub within East Africa.

Officials say fiscal expansion will be matched by continued efforts to strengthen revenue collection and public financial management systems.

Notes to Editors


· Zanzibar has proposed an 8.27 trillion Tanzanian shilling budget for the upcoming fiscal year, representing a 17.7% increase in public spending.

· The budget targets 7.5% GDP growth, inflation of around 5%, and a fiscal deficit below 3% of GDP.

· Priority investments include road infrastructure in Unguja and Pemba, Mangapwani port development, airport modernisation, and electricity distribution expansion.

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