On 21 May 2025, the Revolutionary Government of Zanzibar signed a TZS 240 billion loan agreement with CRDB Bank to finance the construction of 23 double-storey school buildings across Unguja and Pemba.
The loan, equivalent to EUR 79 million, will be used to build the schools in high-demand areas and to equip them with modern laboratories, libraries, computers, and furniture facilities.
The agreement was signed at the State House in Zanzibar by CRDB Bank CEO Abdulmajid Nsekela and Dr. Juma Malik Akil, Permanent Secretary at the President’s Office – Finance and Planning.
President Hussein Ali Mwinyi, who witnessed the signing, highlighted that this is the first time since the 1964 Revolution that Zanzibar has secured a large external loan without the sovereign guarantee of the Government of the United Republic of Tanzania.
He explained that the funds were mobilized through a partnership between CRDB Bank and Deutsche Bank, with a credit insurance guarantee from CESCE of Spain.
President Mwinyi stated that the new financing model would allow Zanzibar to implement multiple strategic projects over the next five years, bypassing delays often caused by reliance on union government guarantees or the domestic budget.
He listed other upcoming strategic projects, including the Mangapwani Integrated Port, Pemba Airport, the Chake Chake–Mkoani and Kisauni–Fumba roads, a new stadium for AFCON 2027, regional hospitals, and a Cancer Treatment Centre of Excellence.
He also emphasized that the government remains cautious in borrowing, with a dedicated repayment account that sets aside around USD 10 million per month for loan servicing.
President Mwinyi praised CRDB Bank and Deutsche Bank for facilitating the loan efficiently and called on financial institutions to avoid delays when supporting public development efforts.
CRDB Bank CEO Nsekela affirmed the bank’s commitment to supporting Zanzibar’s development, particularly in projects that enhance education and social infrastructure.
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