The semi-autonomous archipelago of Zanzibar recorded service receipts of USD 1,267.5 million in the year ending August 2025, representing a 30.6 percent increase compared to the same period in 2024, according to the Bank of Tanzania’s September 2025 report.
The strong performance was largely driven by growth in the tourism sector, as tourist arrivals rose by 26.1 percent to 861,962 visitors compared to the previous year.
Improved service receipts contributed to a 42.1 percent rise in the current account surplus, which climbed to USD 673.3 million. During the period, exports totaled USD 1,300.1 million, while imports stood at USD 648.0 million.
Despite the growth in services, Zanzibar, home to about two million people, experienced a decline in its main traditional export, cloves. Clove exports dropped sharply to USD 3.57 million from USD 28.75 million recorded in the same period last year.
The service sector continues to dominate Zanzibar’s economy, accounting for about 70 percent of the archipelago’s Gross Domestic Product (GDP).
