Zanzibar has approved a TZS 8.52 trillion budget for the 2026/27 financial year, representing a 22.11% increase compared to the previous year’s budget.The government aims to achieve economic growth of 7.5% in 2026, up from 7.0% in 2025, while reducing dependence on external financing from 4.9% to 2.8% through stronger domestic revenue collection and improved tax administration.The budget was presented by Finance and Planning Minister Dr.Juma Malik Akil and approved unanimously by the House of Representatives, with implementation beginning on 1 July 2026.

Key economic sectors identified as priorities include tourism, agriculture, fisheries, small and medium-sized enterprises (SMEs), and the blue economy.Tourism remains a major driver of growth, with visitor arrivals reaching 800,968 between July 2025 and March 2026, an increase of 21.9% compared to the same period a year earlier.The government also expects opportunities linked to the Africa Cup of Nations 2027 to stimulate tourism and investment.

Among the major investor-focused measures is the planned establishment of a Zanzibar stock exchange to improve access to capital and strengthen financial services.

Additional priorities include investments in electricity infrastructure, renewable energy, digital technology, financial inclusion and modern revenue collection systems.

Tax incentives include extending relief on imported raw materials to qualifying SMEs outside ZIPA registration, reducing the Skills Development Levy from 4% to 3%, and cutting stamp duty on commercial vehicles by 25%.At the same time, excise duties will increase on selected imported products such as alcohol, cigarettes, cosmetics and entertainment tickets.

As of March 2026, Zanzibar's public debt stood at approximately TZS 3 trillion, which the government considers sustainable and manageable for financing productive development projects.