Zanzibar Investment Policy (ZIP).

This Zanzibar Investment Policy is a nationwide multisectoral document aiming at contributing to the realization of the Vision of a society of educated and healthy individuals with a dynamic culture and sustainable economy. The government will be responsible for putting in place an effective regulatory framework in order to create fair competition in the various markets increasing the investments, to protect the environment and to guarantee quality of products. With the economic reforms that emphasize the role of the private sector and liberalized markets, more investments are expected to increase. This policy will help increase the speed of investment inflows. Current priority sectors for investment have been identified to include (i) financial and business services, including offshore and freeport center activities; (ii) tourism; (iii) agriculture (crops, livestock and fish and marine products); (iv) manufacturing; (v) trade; and (vi) transportation. In order to sustain high growth, Zanzibar wants to shift more forcefully into higher value sectors including, financial services, business services, information technology and tourism. Growth in these sectors is derived from knowledge networks and a sophisticated support infrastructure that demands substantial capital and expertise.
The overall Policy objectives will include the following (i) promote domestic production of goods and services for export to enhance the development of a competitive export sector; (ii) attract and optimize FDI’s to complement local private sector efforts; (iii) mobilize investments that are socially and economically beneficial as well as environmentally sound in order to protect Zanzibar’s natural heritage; (iv) encourage and facilitate the adoption of new technologies that have a direct bearing on productivity, quality and increased competitiveness; (v) reform the public administration to establish an efficient bureaucracy; (vi) develop transparent legal framework, which facilitates and gives guarantee of protection to all investors; (vii) deregulate and speeding up of the investment approval process; (viii) improve linkages among the various economic sectors; (ix) empower women by encouraging them to invest into areas where they have comparative advantage; (x) encourage investment in Research and Development (R&D), particularly in the productive sectors; (xi) promote training and skills development for employment opportunities in all sectors of the economy.
The document also outlines some sectoral objectives. The objectives of agriculture sector in this Policy are (i) promote and redirect food production and commercial farming to meet food demand by the tourist industry and other consumers; (ii) promote commercial production in the livestock sector, including processing and marketing of high quality livestock products; (iii) institute a secure land tenure system that promotes maximum use of land resources; (iv) undertake research in high value agricultural products such as horticultural produce for exports. Policy objectives in the marine sector are (i) attract investments in deep sea fishing; and (ii) promote investment in fish processing. In the Energy sector, the aim is to promote the adoption of energy systems of production, procurement, transmission, and distribution, which are efficient and cost affective, as well as promote investments in the development of all possible commercial sources of energy.
To achieve the investment policy objectives, six strategies will be implemented (1) the provision of an efficient institutional framework including the role of the Government, Investment Promotion Authority and other supporting institutions particularly financial institutions; (2) to put in place adequate and effective fiscal and non-fiscal incentives for the mobilization of local and foreign investments; (3) to establish transparent legal framework that facilitates the promotion and gives due guarantee of protection to all forms of investment activities; (4) the provision of adequate, quality and reliable socio-economic infrastructure and utilities; (5) the implementation of the policy that seeks to promote growth of exports by strategically employing scarce natural, social and capital resources through efforts such as establishment of EPZ, industrial processing sites and Free Port; (6) the focus on investment promotion and marketing.