TPSDE Facility II – EU Zanzibar Investment Report

The Project at A Glance

Tanzania is among the 10 fastest-growing economies in Africa. The EU’s 2021-2027 Cooperation Strategy with Tanzania aims to boost EU investment in Tanzania. Given the shared interest of the EU and Tanzania in promoting investment and trade, the business forum seeks to lay the ground for businesses and new investments to support the development of a resilient, competitive, sustainable, and diversified Tanzanian economy.

In this context, International Economics supported the European Commission in analysing and promoting EU-Zanzibar economic relations and produced an EU-Zanzibar Investment Report.

Explore the full Report and Brochure here.

What We Found

Zanzibar’s economy focuses on new ways to maximise the potential of its key asset, the Indian Ocean, to develop its economy with investment opportunities in particular, blue economy, tourism and real estate. To date, nearly 200 investment projects generating around USD 3 billion are recorded by the Zanzibar Investment Promotion Authority (ZIPA) in marine transportation, renewable energy and infrastructure with potential to support long-term development underpinned by foreign and local investment. Increased attention is given to the sustainability of the overall development strategy and new investments, as resources of this small islands are limited and recent developments, especially in the Tourism sector, put increasing pressure on energy and water supplies, as well as on its fragile coastal and marine eco-systems. Based on the Zanzibar European Investment forum held in Zanzibar in June 2022, one of the resolutions was to produce an EU-Zanzibar Investment to analyse and promote EU – Zanzibar economic relations.

Our Strategy and Impact

Our Team reviewed and mapped the EU’s investment landscape in Zanzibar, describing the main sectors of investment, its respective policy environment, EU investment in those sectors, existing opportunities and challenges, and including suitable examples of company case studies. The Report emphasised on the results such as EU trade, investment, employment creation, revenue/tax contribution, etc. and the contribution EU businesses made to Zanzibar’s development.

The report will serve as the background information for the EU programmes in the various sectors the EU is working in within the Zanzibar Archipelago. It will also help to better understand how the EU Delegation in Tanzania can support EU investment in the area of ‘blue economy and green cities’ being two of our key programme under the NDICI.

Our Core Solutions

At International Economics, we provide specialised strategies for company solutions that are focused on imports and exports. Investigating global supply networks and comprehending the global regulatory landscape become essential when companies look to grow into new markets.