Friday, 15 December 2017

Agriculture contributes over 60% of GDP and provides employment for about 80% of labour force. Until recently, Zanzibar had a typical mono- crop economy relying on cloves for most of its export. However the collapse of price of this major cash crop in the early eighties has almost been synonymous to the loss of economic fortunes of the isles as cloves used to be the main foreign exchange earnings. Radical reforms and the liberalisation of the economy were initiated in the 1980’s in all sectors with important improvement in tourism’s, transport and commerce in particular. The establishment of export processing zone and Zanzibar Investment Promotion Agency facilitated the increase in foreign investment, creations of employment opportunities and increased in earnings. Nevertheless the annual growth rate of the GDP has increased from 3.4% in 2001 to 6.3% in 2009. However the growth has not yet been sufficient to make any significant impact on the standard of living of the majority of the people.

Inspite of attractive economic policy, which has attracted a number of foreign investors, provision of social services, has mainly remains on the hands of government. Private investment in social services and industries has been very minimal As in most African countries, the social sector in Zanzibar has been affected adversely. The resources for the provision of social services have gradually declines in real terms, resulting in the deterioration of the quality public service delivery.


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