ZANZIBAR President Dr Hussein Ali Mwinyi has said that the FinScope Tanzania 2023-Zanzibar Report, which has just been recently launched, reflects the current situation of the financial sector in Zanzibar.

Speaking here on Wednesday Dr Mwinyi who was represented by Zanzibar second Vice President, Hemed Suleiman Abdallah, said that the report was a crucial tool, which can be used by all stakeholders in the financial sector for decision-making when it comes to developing the financial sector in Zanzibar.”

He explained that the report was very crucial because it gives a real picture of the situation of the welfare and access to inclusive financial services in Zanzibar.

He said that all people of Zanzibar were witnesses of how the findings of the FinScope Tanzania 2017 - Zanzibar report had helped various processes of improving and increasing access to inclusive financial services to the people.

“FinScope has helped policymakers to sufficiently review policies, formulate follow-up concepts, and put in place strategies for improving welfare and access to inclusive financial services. FinScope has helped private sector stakeholders to develop financial products and services, which meet market and customer needs,” he said.

Dr Mwinyi explained that looking at key strategies and plans that were put in place by the Revolutionary Government of Zanzibar, for instance, the Zanzibar Development Plan (ZADEP) 2021-2026, it is clear that it leveraged findings from the FinScope Tanzania 2017- Zanzibar Report.

He called on all stakeholders in the implementations of the Zanzibar Vision of Development, the National Strategic Plan of Inclusive Financial Services (2023-2028), and other development plans to use the insights from the report to evaluate the current situation and develop tactics which would be used to address challenges before the completion of indicative planning.”

 “I am comforted to hear that since the launch of the first FinScope Tanzania 2017-Zanzibar Report, there has been an increase in the availability and use of formal financial solutions; thus, the level of financial inclusion in Zanzibar has increased from 45 percent in 2017 to 82 percent in 2023. This means that our efforts towards addressing the challenges that lead to a dearth of inclusive financial services, especially in rural areas, have yielded a significant positive impact.”

“The report ZANZIBAR President Dr Hussein Ali Mwinyi .”

He assured that the Revolutionary Zanzibar government was determined to ensure the growth of the financial sector and the increase in the level of financial inclusion is evident as success of this determination.

He urged all financial sector players to read the report thoroughly. It will be available in both hard and soft copy through the websites of the President’s Office-Finance and Planning Zanzibar, Bank of Tanzania, NBS, OCGS Zanzibar and the Financial Sector Deepening Tanzania (FSDT).

Welcoming the Guest of Honour, the Minister of State, President’s Office-Finance and Planning, Dr Saada Mkuya Salum, said that she believes that the findings of the FinScope Tanzania 2023- Zanzibar Report have helped the financial sector to compare the findings with what they were already thinking, theoretically.”

However, she added that some of the insights from the report were surprising, “To some of us, especially policymakers, regulators, and financial service providers, we were surprised by the following four insights: firstly, the increase in the use of insurance services from 4 percent in 2017 to 8 percent in 2023. This trend is expected to continue following the establishment of Universal Health Insurance.

Secondly, 36 percent of the respondents of the FinScope Tanzania 2023-Zanzibar survey said that their income depends on others, either through receiving cash from others or having their expenses being covered by relatives and friends.

Thirdly, besides the overall improved access to formal financial services, there are still people who cannot access these services due to lacking national ID numbers or cards. According to this report, only 72 percent of the people in Zanzibar are holders of the Zanzibar Residence Identity Cards (ZanIDs).

Fourthly, about half of adults aged 55 years or below do not receive old age pension or retirement benefits.”

In the implementation of this, there is a need to distribute the findings of this survey through the right means to ensure we make decisions and develop financial solutions that are easily accessible, affordable, and comply with the needs of consumers to reach more people. “I am hopeful that the Office of Chief Government Statistician (OCGS) in Zanzibar will be at the frontline of distributing these findings to the right stakeholders.”

The Permanent Secretary of the President’s Office-Finance and Planning, Zanzibar, Dr Juma Malik Akil said. “We have all witnessed great concerted efforts made by the Revolutionary Government of Zanzibar, led by the Zanzibar President Dr Hussein Ali Mwinyi, in cooperation with financial service providers from the private sector to improve financial infrastructure and solutions.”