Whither Zanzibar?

Zanzibar's controversial multi-party elections for a new president and parliament are over. But, the future of the semi-autonomous islands remains an open question. Will the victorious ruling Chama Cha Mapinduzi party agree to form a unity government with the opposition Civic United Front? Will the two parties be able to work together for the benefit of all Zanzibaris? I visited Zanzibar in October 1995 and reported the rival parties agreed on the urgent need to economically revive the once-fabled spice islands.

Back around the turn of the century, Zanzibar was perhaps the busiest trading center in East Africa. Ships came in and went out, doing a brisk business exporting the islands' cloves and other exotic spices.

But global demand for cloves has long since dwindled and Zanzibaris with their essentially mono-crop economy fell on hard times.

A lengthy post-independence experiment with socialism dealt a harsh blow to the islands, where as recently as several years ago there were regular shortages of such basic commodities as sugar, soap, and toilet paper.

Zanzibar is trying to stage a high-tech comeback that will turn it into the economic tiger of Africa -- like Singapore or Hong Kong in Asia, two role models often cited by politicians and businessmen with an upbeat vision of Zanzibar's future.

Ali Juma Shamuhuna is one such man. He is the executive secretary of Zanzibar's Free Economic Zone Authority, the main island agency behind a multi-billion-dollar free port and export-processing-zone investment scheme. He is a fervent supporter of Zanzibar's new and former president, Salmin Amour.

“Our president has always been saying that he wants to turn Zanzibar to be a Singapore of Africa and I tend to believe in that. Zanzibar can be a Singapore of Africa, partly because of its geographical, strategic position but partly because of its size in terms of land, in terms of population.”

Mr. Shamuhuna says laws and policies favorable to outside investors are already in place -- including lengthy tax holidays and provisions for 100-percent foreign ownership with recapture of all profits. He says what is needed now is political stability and a better education system.

“We have already established a good environment in terms of economic policies, trade liberalization. What we need now is political stability and cultivation of a high-skilled labor force.”

The Zanzibari official points with pride to a number of investment deals which have already been made. There is an industrial park on the main island of Unguja where 17 companies have invested 16-million dollars and employ about one-thousand people. Twelve other companies have applied for plots in the park and Mr. Shamuhuna projects a total investment there of about 30-million dollars by the end of 1998. He says overall employment is expected to double, to about two-thousand.

But his agency's big hopes are now pinned on another project -- the development of a free port at Fumba Bay at the south end of the main island. Mr. Shamuhuna says a consortium of Australian and Indian firms has poured 16-million dollars into the area to develop roads, two 18-hole golf courses, luxury hotels, warehouses and more. He projects the consortium will spend one-billion dollars during five years.

Ultimately, officials see the bay as a place where firms will engage in manufacturing, assembly, and transit trade. They also see it as a major offshore banking and insurance center.

But there is little to show for the money already spent. Diplomats and other recent travellers have found the road to Fumba Bay remains rutted and undeveloped. There is no sign of any construction in the area.

Opposition activists of the Civic United Front suggest the ruling CCM party's plans for the islands are merely that -- plans -- and they say they do not have any faith in them.

So while they may agree for the need for the islands' economic revival, they charge the government is too inefficient and too corrupt to be able to succeed in turning a vision into a reality. As examples, an opposition pamphlet entitled "Whither Zanzibar" criticizes the government for neglecting the development of basic utilities such as electrical power and water in outlying areas, while spending millions of dollars for a presidential jet. They also claim the number of government-owned vehicles far exceeds that of privately-owned ones.

Question: Can anyone out there perhaps tell me and other readers what ever happened to Zanzibar’s effort to become an Asian Tiger like economic powerhouse? I see there are now tourist resorts in Fumba Bay.