Impact of Zanzibar Investment Promotion Authority Approved Projects on Gross Domestic Product of Zanzibar


  • Asma Kassim Master Student, Zanzibar University, Department of Economics, Faculty of Arts and Social Sciences, Zanzibar.
  • Salama Yusuf Department of Finance, Faculty of Business Administration, Zanzibar University, Tanzania.
  • Abdalla Ussi Department of Economics, Faculty of Arts and Social Science, Zanzibar University, Tanzania.
  • Moza Omar


Ordinary Least Square, GDP and ZIPA


The aim of this paper was to examine the impact of Zanzibar Investment Promotion Authority (ZIPA) approved projects on Zanzibar Gross Domestic Product (GDP). The study applied the Ordinary Least Square (OLS) method to estimate the results on yearly secondary data from 1990 to 2019. The estimated results showed that one percent increase in number of projects, capital approved and government expenditure will lead the GDP to increase by 17.7%, 27.3% and 32.5% respectively at 5% level of significant. Unfortunately, net export (EXP) shown to be significant but negatively related with GDP of Zanzibar. A one percent increase in EXP will lead to decrease in GDP by 26.8%.  Therefore, it is concluded that ZIPA approved projects have positive significant impacts to Zanzibar GDP. The study then recommends for ZIPA to function in accordance with its role as elaborated in act No. 14 of 2018 since the better performance of this institution will leads to more invested projects with huge amount of capital resulting into more employment creation, rising of household expenditure and the national GDP. 


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How to Cite

Kassim, A. ., Yusuf, S. ., Ussi, A. ., & Omar, M. . (2021). Impact of Zanzibar Investment Promotion Authority Approved Projects on Gross Domestic Product of Zanzibar. International Journal of Sciences: Basic and Applied Research (IJSBAR), 56(2), 253–262. Retrieved from