Tanzania: TZS 300 Billion Investment to Expand Zanzibar’s Fibre-Optic Infrastructure
Zanzibar is accelerating its digital transformation through an investment of approximately TZS 300 billion to expand fibre-optic infrastructure across the islands.
The project is being developed through a partnership between Yas Fibre and the Zanzibar Information and Communication Technology Infrastructure Agency (ZICTIA).
The long-term partnership is designed to expand high-speed broadband infrastructure across Unguja and Pemba, with a target of connecting around 100,000 households within the first three years.
What Is the Zanzibar Fibre Project?
The partnership was announced in June 2026 and is valued at approximately TZS 300 billion over a 20-year period.
The project aims to expand broadband access for households and businesses while strengthening Zanzibar’s wider digital infrastructure.
The initiative is part of a broader digital transformation agenda covering tourism, education, healthcare, public services, entrepreneurship and technology-driven businesses.
Connecting 100,000 Households
One of the project’s main targets is the expansion of Fibre-to-the-Home (FTTH) connectivity.
Approximately 100,000 households are expected to gain access to high-speed internet during the first three years of implementation.
Improved connectivity could support:
- Online education
- Digital financial services
- E-commerce
- E-government
- Digital healthcare
- Remote work
- Cloud services
- Online businesses
Fibre Infrastructure and Zanzibar’s Digital Economy
Reliable, high-speed internet is becoming an essential foundation for Zanzibar’s digital economy.
Startups, tourism companies, online retailers and digital service providers all depend on reliable connectivity to reach customers and operate efficiently.
Zanzibar authorities have also highlighted the role of technology in improving healthcare, education, public services and economic opportunities.
Impact on Tourism
Tourism is one of Zanzibar’s important economic sectors.
Hotels, resorts, travel agencies, restaurants and other tourism businesses increasingly require reliable internet for online bookings, digital payments, international marketing, customer communication and technology-enabled services.
Yas has said stronger connectivity in Zanzibar could help tourism businesses serve international visitors more effectively.
New Opportunities for Startups and Entrepreneurs
The expansion of fibre connectivity could also create new opportunities for Zanzibar’s startups and digital entrepreneurs.
Better internet access can allow entrepreneurs to develop online businesses and reach customers beyond the islands.
Zanzibar’s Minister of Communication, Information Technology and Innovation has emphasized the importance of enabling young people to use digital skills to build businesses serving customers both inside and beyond Zanzibar.
Fibre, AI and Emerging Technologies
Fibre infrastructure also provides an important foundation for technologies such as artificial intelligence, Internet of Things, cloud computing and 5G.
ZICTIA’s ICT Infrastructure Masterplan identifies resilient and scalable connectivity as a priority for Zanzibar’s digital development and highlights the importance of infrastructure supporting AI, IoT, 5G and cloud technologies.
The launch of the Zanzibar Digital Policy 2026 during the September 2026 Tech & AI International Expo further highlighted the islands’ focus on digital transformation and technology-driven development.
What Does the TZS 300 Billion Investment Mean?
The project is valued at approximately TZS 300 billion. Some reports at the time of the original agreement estimated the value at around US$114.5 million, although the dollar equivalent changes with exchange rates.
The project is significant because it can:
- Expand fibre-optic infrastructure.
- Increase household broadband access.
- Support digital businesses.
- Improve tourism services.
- Create opportunities for startups.
- Strengthen digital public services.
- Support the wider digital economy.
Investment Opportunities in Zanzibar’s Digital Infrastructure
The expansion of fibre networks could generate demand for a range of technology-related products and services, including:
- Telecommunications equipment
- Fibre-optic technology
- Network equipment
- Data centres
- Cloud services
- Cybersecurity
- Enterprise software
- Artificial intelligence
- Internet of Things
- Network management systems
- Digital services
- E-commerce
- Online education
For Iranian technology companies, potential areas of cooperation could include technology transfer, technical partnerships, equipment supply, software development and participation in digital infrastructure projects, subject to local regulations and procurement requirements.
Zanzibar’s Digital Economy Outlook
The TZS 300 billion fibre project is part of a wider effort to strengthen Zanzibar’s digital economy.
Alongside connectivity, Zanzibar is developing digital policies, ICT infrastructure and frameworks aimed at supporting innovation, startups, investors and emerging technologies.
ZICTIA’s infrastructure planning specifically highlights digital inclusion, tourism, emerging technologies and economic diversification as important objectives.
Conclusion
The approximately TZS 300 billion investment by Yas Fibre in partnership with ZICTIA represents a major step in Zanzibar’s digital infrastructure development.
The target of connecting 100,000 households within the first three years could expand high-speed internet access and strengthen the infrastructure needed for digital businesses, tourism, education, public services and innovation.
