Zanzibar is seeking new and affordable financing to support major infrastructure projects, including the proposed Mangapwani Integrated Port, energy expansion and a plan to build 10,000 homes.

The government wants to reduce its reliance on conventional loans and government guarantees as it looks for funding that can support projects tied to trade, electricity, housing and investment.

President Hussein Ali Mwinyi said Zanzibar needs to broaden its financing options and find funding that fits the islands’ development plans. He spoke during a meeting with Trade and Development Bank President and CEO Admassu Tadesse and his delegation at State House in Zanzibar.

“We need to explore new and affordable sources of financing for our strategic projects rather than relying solely on conventional loans and government guarantees,” Mwinyi said.

Port plans take center stage

The Mangapwani Integrated Port is one of Zanzibar’s main infrastructure projects. The government plans to develop it as a transshipment port for cargo moving to other destinations, with facilities for a dry port, oil and gas activities and grain storage.

The project could strengthen Zanzibar’s role in regional trade while creating demand for related logistics and transport services. Mwinyi said the government is open to financing arrangements that can support projects with clear economic value.

Energy and housing need capital

Energy is another priority, with Zanzibar seeking investment to expand electricity generation and increase the use of renewable energy. Mwinyi said stronger power supplies will be needed as new businesses and development projects increase demand.

The government is also looking for funding to build 10,000 housing units and help the Zanzibar Housing Corporation expand its housing program.

Other areas under consideration include oil and gas, social security investments, feasibility studies and stronger domestic financial institutions.

TDB offers financing options

Tadesse said TDB has financing tools for projects at different stages, including project preparation finance, concessional capital, private-sector investment and specialized funds.

Trade and Development Bank, established in 1985, is an African regional development finance group that provides financing to governments, companies and financial institutions.

Its services include loans, equity, guarantees and project finance for infrastructure, trade and other sectors.

Tadesse said the bank is ready to work with Zanzibar and use its regional network to help attract investors.

For Zanzibar, the talks offer a chance to bring more private and development capital into projects that will shape the islands’ transport, energy and housing sectors.