Unguja. President Hussein Mwinyi announced that Zanzibar, while celebrating 61 years of the revolution, takes pride in several significant achievements, which include maintaining peace, unity, and solidarity, as well as boosting the economy.
In his speech on January 11, 2025, during the 61st anniversary of the Revolution celebrated in Gombani, Pemba, he emphasized the development of infrastructure, increased investments, and business growth, improvements in social services, and the strengthening of democracy and good governance.
Dr Mwinyi stated that these accomplishments are rooted in the 1964 Glorious Revolution and the efforts made by the people and leaders of all previous administrations.
“The eighth government, which assumed office four years ago, has worked tirelessly to continue the progress made and ensure that Zanzibar advances in development across all sectors, while upholding the principles of peace, patriotism, and national unity,” he said.
President Mwinyi reported that Zanzibar’s economy has been steadily growing, with a growth rate of 7.5 percent as of September 2024. The Gross Domestic Product (GDP) at market prices increased to 6.04 trillion shillings in 2023, up from 4.78 trillion shillings in 2021, representing a 26 percent rise.
He added that the growth of GDP and economic expansion have been primarily driven by advancements in the services sector, which experienced an average growth of 9.9 percent in 2023 compared to just 1.3 percent in 2021.
“The tourism sector has seen significant growth, with the number of tourists visiting Zanzibar increasing by 145 percent during this period. Moreover, government revenue collection has risen by 51 percent, from 858.2 billion shillings in 2020/21 to 1.3 trillion shillings in 2022/23,” he said.
He also pointed out that the pace of investment has accelerated, noting that the Zanzibar Investment Promotion Authority (ZIPA) has registered 449 projects worth $5.9 billion, which are expected to create over 22,966 jobs. These projects encompass investments in hotels (169), businesses (99), factories (43), agriculture (28), sports (28), and other sectors (82).
Regarding investments in blue economy sectors, President Mwinyi mentioned that the government has allowed investments on small islands. A total of 17 islands have registered investment projects with an expected investment of $377.5 million (approximately 954.34 billion shillings). The government is taking further steps to attract investors and promote opportunities in areas like the Mangapwani Multi-Purpose Port.
Tourism and fisheries
President Mwinyi highlighted major achievements in tourism, reporting an increase in tourists from 568,312 in November 2023 to 645,144 in November 2024, representing a 14 percent rise.
He also indicated that government efforts have led to a 107.2 percent increase in fish production, from 38,107 tons in 2020, valued at 205.35 billion shillings, to 78,943 tons in 2024, valued at 618.18 billion shillings.
“The government will continue to support fishermen by providing equipment, loans, and expertise to enhance their fishing efficiency and enable them to reach deeper waters,” he said.
Additionally, Dr. Mwinyi mentioned significant improvements in port services and maritime transport, announcing the signing of a contract with Africa Global Logistics (AGL) to manage operations at Malindi Port, also known as Zanzibar Multipurpose Terminal (ZMT). This engagement aims to improve ship docking times and container handling capacity.
Energy, Education and Health
He stated that the government has reduced the cost of electricity connections from 464,000 shillings to 200,000 shillings for connections not exceeding 30 meters, representing an average reduction of 50 percent. As a result, 115,242 new electricity customers have been connected between November 2020 and August 2024.
In the education sector, the government has constructed new modern schools with laboratories, libraries, and computer rooms while also renovating older facilities. He noted that 2,773 new classrooms have been built through 35 new multi-story schools, achieving 184.8 percent of the target to construct 1,500 classrooms.
He mentioned an increase in the education budget from 265.5 billion shillings in 2021/22 to 830 billion shillings in 2024/25, a 212.6 percent increase.
To address the shortage of teachers, particularly in science subjects, the government has recruited 3,531 new teachers and plans to hire an additional 1,867 teachers for the 2024/25 fiscal year.
In healthcare, the government has enhanced health services by constructing 10 new modern district hospitals and one regional hospital equipped with specialized services and advanced diagnostic equipment. Additionally, 10 new health centers and 35 dispensaries have been established, alongside two major water supply projects valued at $92.18 million.
Union and elections
President Mwinyi mentioned the achievements made in the political, economic, and social spheres of the Union.
He stated that since the establishment of the system for addressing Union issues in 2006, a total of 26 issues have been discussed, 22 of which have been resolved.
“60 cooperation meetings between Union ministries and institutions have been held. Zanzibar continues to benefit from the distribution of external aid resources,” he said.
Dr Mwinyi also addressed the upcoming general election, stating that both governments, through their respective electoral commissions, are preparing to ensure the election is conducted fairly and legally.
He emphasized that everyone has a responsibility to maintain the peace of the nation before, during, and after the election.
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Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
