Speech by EU Ambassador to Tanzania at the Opening of the Zanzibar-European Union Business Forum

Ladies and Gentlemen, (all protocol observed)

As-salamu alaykum. Karibuni sana to the 2nd EU-Zanzibar Business Forum. It is truly an honour to stand before you today, representing the European Union, constituted of 27 member states, as we continue to cultivate and strengthen our partnership with the beautiful islands of Zanzibar.

First and foremost, I would like to extend my deepest gratitude to His Excellency, President Dr. Hussein Ali Mwinyi, for gracing us with his presence for indeed the second time. Your leadership and vision for Zanzibar resonates deeply with our shared commitments toward sustainable development, economic resilience, and prosperity for all.

When we gathered for the first EU-Zanzibar Business Forum back in June 2022, we set out to create a space for open dialogue, connection, and opportunity and we are hopeful to continue in this spirit. 

In my remarks, I would like to focus on two key elements: 

• On the European Union’s combined impact regarding foreign direct investment and

• Going forward, our new support to ZIPA, the Zanzibar Investment Promotion Authority;

Over many years, European companies have been a key investor in Zanzibar. Documenting this joint impact, we have developed the “EU investment in Zanzibar report”, which I am delighted to launch later today together with His Excellency and my fellow colleagues from the European Union member states.

This report, a collaboration with different government agencies and the European private sector, portrays not only our past achievements, but describes potential investment opportunities, with promising economic returns focusing on environmental sustainability and improved quality of life.

Over the last 5 years from 2018-2023, European companies have been investing around TZS 4 trillion, across 121 projects, creating over 7,300 jobs.

In 2023 alone, European firms pledged more than EUR 630 million, the equivalent of about TZS 1.6 trillion, in investments across sectors vital to Zanzibar’s economy. 

And I understand fast forward to today, the European Union member states would reach a combined investment of TZS 7 trillion.

The European Union and its member states remain the leading foreign direct investor in Zanzibar, accounting for 47% of the total investment stock in 2022. With countries such as Italy, Spain, Germany and Netherlands, leading the way. 

Our investments are diverse. We engage in hospitality, real estate, manufacturing, renewable energy, and agriculture, among others. 

These sectors hold immense potential for transformative growth, combining economic benefits with societal and environmental advancements.

Thus, the report highlights the joint economic power of the European Union and its member’s states. As we just heard from my colleague, the Italian Ambassador, Italy has over a long time been continuously among the top 10 investors in Zanzibar (please check against his delivery). And I would like to assure the government and the people of Zanzibar, we will continue to be a strong economic partner for Zanzibar. 

I am proud to say that besides financial investments, the EU has prioritized knowledge exchange and investment in human capital, which is crucial for sustained growth. Our efforts go beyond economic interests and encompass environmental conservation, gender equality, strengthening governance systems and providing access to finance. 

The report would not be comprehensive if not also acknowledging challenges faced by the private sector. Regulatory uncertainties, infrastructure needs, and skill gaps in the labour market present hurdles that we must overcome. The high cost of importing technical equipment affects progress in some sectors. 

But the Revolutionary Government of Zanzibar is committed to addressing these challenges. Initiatives such as the Single Window System, the strengthening of the Zanzibar Investment Promotion Authority, the objective to become a sustainable tourism destination and the establishment of the Ministry of Blue Economy highlight the government’s proactive stance in creating a conducive environment for investors. These efforts are being complemented by improvements in port facilities.

Further, European Union Development Cooperation with Zanzibar has steadily grown, including investments in the blue economy, climate resilience, urban water infrastructure in Pemba, horticulture, and renewable energy. Just yesterday, I had the privilege to visit a vocational training centre and a primary school in Pemba that we proudly support. These projects reflect our broader ambition—to invest in people, strengthen communities, and foster long-term growth.

I would like to emphasise, we - the European Union, acknowledge that YOU, the private sector are a key partner in driving economic growth. 

We will continue to increase our focus on supporting the business environment; one that is transparent, predictable, and inclusive, to strengthen the private sector and spur economic development. 

Secondly, in a minute I will sign together with Mr. Saleh Saad Mohamed, Executive Director of the Zanzibar Investment Promotion Authority, our new financial support programme. 

This support, marks a significant milestone, further solidifying our shared commitment.

The three-year programme focuses on supporting the capacity of the Zanzibar Investment Promotion Authority to:

1. Strengthen their “after care services” for existing investors.  And the public private dialog we are conducting today, is a testimony of this objective.

2. Improving the analysis capacity of available data to better address possible bottlenecks and communicate more effectively with the private sector

Leading to increased investments while ensuring environmental responsibility and social equity. 

Our commitment is strong; we are focused on long-term, sustainable investments that will enhance local capacities, empower communities, and promote environmental stewardship. 

Concluding, I want to take this opportunity to express my heartfelt appreciation to all involved in organizing this forum and to everyone participating. Let us take full advantage of this opportunity to openly discuss how the business environment could be improved, unlocking further investment and increase the prosperity of Zanzibar. 

Thank you, and I look forward to productive discussions and actionable resolutions this day will surely bring.