Zanzibar is moving ahead with plans to modernise its taxi sector through the introduction of a digital fare payment and metering system aimed at improving transparency, efficiency, and service delivery across the islands.

The initiative is being led by the Zanzibar Revenue Authority (ZRA) together with the Zanzibar Commission for Tourism (ZCT), alongside other key stakeholders in the transport and tourism sectors.

Under the proposed reforms, taxis will be fitted with digital meters and electronic payment systems that will allow fares to be calculated based on distance and time, displayed in real time for passengers.

This development is expected to address long-standing concerns about inconsistent and often disputed taxi fares, a challenge faced by both residents and tourists visiting Zanzibar.

By standardising fare structures, authorities aim to eliminate negotiation-based pricing and create a more predictable and fair system for passengers.The digital platform will also improve tax compliance and revenue collection by ensuring that transactions are properly recorded and monitored.Officials say the reform is part of Zanzibar’s broader strategy to strengthen infrastructure that supports its growing tourism industry.

With increasing numbers of international visitors arriving from Europe, the Middle East, and Asia, reliable and professional transport services are seen as essential to maintaining the island’s reputation as a leading tourist destination.

The system is also expected to benefit taxi operators by providing a more organised working environment, reducing conflicts with customers, and ensuring fair earnings based on clear regulations.Implementation is still in consultative stages, involving transport associations, technology providers, and regulatory bodies.Training for drivers will be required to ensure smooth adoption of the new digital tools.

If successfully implemented, the system could serve as a model for other regions in Tanzania and East Africa seeking to modernise urban transport and support tourism-driven economic growth.