Zanzibar president orders tax shield to boost local industry

Zanzibar President Dr Hussein Mwinyi has directed the government to implement tax and fiscal policies aimed at protecting local industries from unfair competition and fostering sustainable growth.

Dr Mwinyi issued the directive while inaugurating the Zan Breed Chicken Farm in Kitope Village, Unguja North ‘B’ District, during the 62nd anniversary celebrations of the Zanzibar Revolution. The president said that domestic industries must operate under fair tax regimes to avoid being undermined by imported products that evade proper taxation.

“It is important to protect our industries through appropriate tax policies so they are not forced to compete with imported goods that are not taxed accordingly. Otherwise, our industries will not survive,” Dr Mwinyi said.

The new poultry project is expected to significantly reduce Zanzibar’s dependence on imported chicken, which has historically come from countries including Brazil, the United States, and Türkiye. Dr Mwinyi described the facility as a milestone in local production, fulfilling a long-held aspiration to establish a large-scale poultry factory on the islands.

“This is a dream I have spoken about for many years. Today, that dream has been fulfilled,” he said.

The facility is also set to function as a training hub for small-scale poultry farmers, addressing critical challenges such as limited technical knowledge, lack of capital, and difficulties in accessing chicks, feed, veterinary supplies, vaccines, and reliable markets. Many local farmers previously sourced chicks from Dar es Salaam or imported them from Malawi.

Dr Mwinyi pledged government support to ensure that farmers can expand their businesses, adopt modern poultry practices, and improve livelihoods. He instructed the Ministry of Agriculture to guarantee that the project directly benefits small-scale producers, enabling them to increase production and reduce poverty.

He also called on the Zanzibar Investment Promotion Authority (ZIPA) to continue attracting strategic investments in sectors such as livestock and dairy cattle to reduce import reliance and promote domestic production.

“We have entrusted ZIPA with government land to allocate for productive investments. They deserve recognition for attracting both local and foreign investors into impactful projects,” the president said.

Dr Mwinyi praised the investor behind the poultry project, describing it as strategically significant and internationally competitive, a rarity in the East African region. He reaffirmed the government’s commitment to welcoming investors, particularly in industrial development.

Minister for Economy, Labour and Investment Sharif Ali Sharif said the project area will operate as a free zone, designed to maximize benefits for both investors and consumers. ZIPA Executive Director Saleh Saad Mohammed noted that the initiative aligns with government efforts to diversify the economy beyond tourism and strengthen food self-sufficiency.

Under the Eighth Phase Government, ZIPA has registered 588 investment projects worth more than US$6.9 billion, expected to generate over 28,000 jobs. Of these, 144 projects valued at US$2.1 billion are located in the North Unguja region.

Economists said the government’s focus on tax and fiscal policies to protect local industries could help level the playing field, particularly in sectors vulnerable to imports. By shielding domestic producers from under-taxed imports, Zanzibar aims to strengthen its industrial base, boost local employment, and reduce reliance on foreign products.

The chicken farm project is seen as a key example of the government’s strategy to combine industrial investment with skills development, ensuring that local producers can benefit from modern technologies and business practices. Officials said the project could serve as a model for other sectors, supporting Zanzibar’s broader agenda of economic diversification and food security.

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