Dar es Salaam. The Zanzibar government has expanded efforts to attract investors to its Sukuk bond by promoting it in the Tanzanian mainland.
The debt instrument aims to raise funds for key development projects in the Isles while offering an alternative investment avenue aligned with Islamic finance principles.
Minister of State, President’s Office [Finance and Planning], Dr Saada Mkuya Salum, led a delegation to the Bank of Tanzania (BoT) in Dar es Salaam, where she presented the investment opportunity to financial experts and the general public.
Speaking after the meeting BoT Governor, Emmanuel Tutuba, said the introduction of the Sukuk bond follows research conducted in 2023, which identified a segment of the population that refrains from interest-based investments due to religious beliefs.
“In response to these findings, we amended the Bank of Tanzania Act, the Banking and Financial Institutions Act, and the Microfinance Act to facilitate the implementation of Islamic finance instruments in the market,” he said.
He further noted that the Sukuk bond provides a legal and inclusive investment avenue for Tanzanians at home and abroad, thereby promoting financial inclusion and supporting national development projects.
Dr Salum said the Sukuk bond is a transformative financial tool designed to support Zanzibar’s economic growth by funding strategic infrastructure projects.
“In the 2024/2025 financial year, Zanzibar aims to raise capital through the Sukuk bond to implement priority projects, including the construction of the Binguni Cancer Treatment Hospital, the development of 40km of roads in Unguja and Pemba, improvements to electricity infrastructure, and the establishment of the Mangapwani Integrated Port,” she said.
The Zanzibar government is targeting Sh1.115 trillion through the Sukuk bond, with the first phase aiming to raise Sh600 billion.
Mr Tutuba assured investors that the Sukuk aligns with the central bank’s policies and is a secure investment.
He also encouraged the Tanzanian diaspora to invest in the bond to boost foreign exchange inflows.
Additionally, he instructed BoT officials to promote the Zanzibar Sukuk in international financial forums to attract foreign investment.
To raise awareness, Dr Salum and the Zanzibar Sukuk team engaged major media outlets, including Wasafi, Clouds, and Azam TV, to elaborate on the bond’s benefits and investment mechanisms.
The Sukuk investment window, with a minimum investment threshold of Sh1 million, opened on March 6, 2025 and is set to close on April 11, 2025.
The launch of Zanzibar’s Sukuk marks a significant milestone in Tanzania’s adoption of Islamic finance, offering investors a diversified portfolio while contributing to the economic transformation of the Isles.
