The economy of Zanzibar is projected to grow by 6.8 per cent in 2022 a massive improvement from the 5.1 per cent recorded in 2021.
When presenting the budget Vice President Hemed Suleiman Abdulla said the increased growth rate in the Isles is attributed to the global reduction of Covid-19 infections as well as the assisting financial packages received from the International Monetary Fund (IMF) and the Bank of Tanzania (BoT) respectively to boost the archipelago’s economy last year.
IMF gave a $100 million soft loan while BOT gave it a “special loan.” The IMF money went on to stimulate the water, education, health and tourism sectors.
“The expansion will be the result of the increase of entries of tourists, which is projected to reach 450,213 this year if the Ukrainian-Russian conflict will be over soon.” Vice President of Zanzibar Hemed Suleiman Abdulla as quoted by the East African.
Earnings from exports in the Isles have also been on the rise by 138 per cent from Tsh65.7 billion ($28,134,317) in 2020 to Tsh155.6 billion ($66,631,654) accrued last year due to a surge in the exportation of cloves and seaweed.
Inflation has however been hard to tame owing to global hiked fuel prices, the vice president said adding that as of last February the inflation rate was at the range of 2.9 per cent which was a slightly higher than the previous 2.8 per cent.
Efforts made to control food-instigated inflation as recently included the slashing of import duties by almost half from $600 per tonne to only $350 for sugar, rice and flour but to no avail.
Other reasons attributed to the expansion of Zanzibar’s economy include among others state house tight marking of government officials who are responsible for spending the public funds; the booming construction industry and the decision by additional international airlines to make a stop in Zanzibar like the Air France, Azuri Air, Edelweiss, Global Airways and Eurowings.
Read also; Zanzibar Woos Foreigners with Mouth-Watering Tax, Residency Plan.
