Zanzibar’s Mwinyi: We Left Political Differences Behind, Are Heading to Economic Advancement

President Hussein Mwinyi (Photo Credit: Al Qadeer Workshop)
President Hussein Mwinyi (Photo Credit: Al Qadeer Workshop)
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Zanzibar’s Mwinyi: We Left Political Differences Behind, Are Heading to Economic Advancement

President Hussein Mwinyi (Photo Credit: Al Qadeer Workshop)
President Hussein Mwinyi (Photo Credit: Al Qadeer Workshop)

Eastern Africa’s Zanzibar is transforming from the largest slave trade center in the world into the largest African center for economic tourism with it accounting for about 30% of GDP.

President Hussein Mwinyi confirmed that Zanzibar’s political parties have abandoned their differences to maximize economic and food security and accelerate the infusion of foreign and domestic investments, so that the commercial focus of the Middle East remains in Africa.

In an interview with Asharq Al-Awsat, Mwinyi said that “Zanzibar has become politically stable, which created an environment for development, investment, social and economic prosperity, and transformed political momentum into economic momentum.”

The president, however, stressed that the biggest challenge facing Zanzibar’s economy is the weakness of its basic infrastructure sector.

Mwinyi called on Saudi businessmen to invest in the opportunities offered by his country.

Moreover, Mwinyi stressed the importance of strengthening trade, economic and investment relations between Zanzibar and Saudi Arabia, and urged taking advantage of commercial opportunities created by the latter’s plan for national transformation, “Vision 2030.”

Speaking about the level of trade exchange, Mwinyi stressed that relations between Saudi Arabia and Tanzania are long-term and of mutual benefit.

Zanzibar is a semi-autonomous province which united with Tanganyika in 1964 to form the United Republic of Tanzania.

Tourism Cooperation

“Tanzania is a tourist destination,” affirmed Mwinyi, adding that “tourism continues to play a major role in its economy.”

“When we were invited to Saudi Arabia to participate in the recent travel and tourism summit in Riyadh, we were happy to be here in order to learn from this industry,” said Mwinyi, who participated in the 22nd World Travel & Tourism Council Global Summit (WTTC's) in Riyadh.

“I believe that my participation in the recent summit in Riyadh was a great opportunity to meet with some Saudi officials to discuss some related issues and ways to enhance cooperation in all fields,” the president told Asharq Al-Awsat.

“I also had the opportunity to meet with the Federation of Saudi Chambers and business sector officials. We raised our requirements for investment in Tanzania as well as in various sectors,” said Mwinyi.

He pointed out that his country is a tourist destination, especially Zanzibar, where tourism contributes about 30% of the GDP.

Mwinyi added that his country is in a state of continuous research to improve its tourism industry.

Investment Opportunities

“There are wide areas of cooperation between Saudi Arabia and Tanzania in general, and with Zanzibar in particular. Therefore, we are looking for Saudi investments in Tanzania, whether governmental or private,” revealed Mwinyi.

“We have many areas where we need foreign direct investment, whether in infrastructure development, tourism, or social services such as hospitals and schools,” said Mwinyi.

Mwinyi explained that possible areas of bilateral cooperation include energy, water systems, roads, infrastructure, airports, and seaports.

Additionally, the president said he had held “good” discussions with Ahmed Al-Khateeb, the Saudi Minister of Tourism.

“Zanzibar depends a lot on tourism. So, when the coronavirus pandemic hit, it greatly affected our economy,” explained Mwinyi.

“Currently we are witnessing the return of the tourism sector to pre-pandemic numbers,” he revealed.

Business Relations

According to the latest official data, the volume of trade between Saudi Arabia and Zanzibar during the past five years amounted to approximately SAR 15.9 billion ($4.2 billion), while it reached SAR 2.8 billion ($746 million) in the first half of 2022.

It had achieved SAR 4.7 billion ($1.2 billion) in 2021 and SAR 1.5 billion ($400 million) in 2020, an increase of 216% in 2021 compared to 2020.

Shift to Economic Momentum

“Zanzibar needs proper infrastructure to attract capital and investment. So, this is the biggest challenge. But I must say that economically and politically, we are a stable country,” said Mwinyi.

“We had political issues in the past, but we decided to sit down and sort out our differences.”

“Now that we are politically stable, we hope that this will create an environment for investment and social and economic prosperity.”

“One of the most important areas we are working on is attracting capital and foreign direct investment,” said Mwinyi regarding his government's plan to face the challenges ahead.

“We talked with many countries and private sectors to bring capital to Zanzibar,” revealed the president, adding that “there are a lot of investments happening, especially in the tourism field.”

“We are also working to develop the infrastructure,” he affirmed.

“We now have the private sector investing in our seaports and airports and building roads and water systems, especially in the energy sector.”



White House Escalates Pressure Campaign on Federal Reserve by Targeting Its Headquarters Renovation

President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)
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White House Escalates Pressure Campaign on Federal Reserve by Targeting Its Headquarters Renovation

President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)
President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, July 8, 2025, in Washington. (AP Photo/Evan Vucci)

The White House is trying to turn the Federal Reserve into a poster child for wasteful spending, criticizing an expensive renovation at the central bank’s headquarters as President Donald Trump pursues an extraordinary pressure campaign to lower interest rates.

The latest step came Thursday when Russ Vought, Trump’s top budget adviser, sent a letter to Federal Reserve Chairman Jerome Powell saying the president is “extremely troubled” that plans may have violated government building rules with an “ostentatious overhaul."

Trump also named two close aides — James Blair, a deputy chief of staff, and Will Scharf, the staff secretary who furnishes the president with executive orders for his signature — to the National Capital Planning Commission, an obscure panel that could provide another avenue to increase scrutiny.

Blair said he would be “requesting a review of all previous and current building plans” and suggested that Powell wasn’t honest while testifying to Congress about the renovations last month.

If Powell isn’t truthful, Blair wrote on social media, “how else is the American Public to maintain confidence that its monetary policy manager is acting in their interests?”

Taken together, the latest steps amount to an escalating effort to dislodge Powell from his position as chairman before his term ends next May. It’s an unprecedented attempt to reshape the Federal Reserve’s traditional role as an autonomous arbiter of US monetary policy.

If successful, Trump will have expanded his influence to yet another corner of American government that was once seen as beyond the reach of political pressure, but he will have also jeopardized the independence that has made the central bank a foundational player in the US economy.

On Wednesday, Trump said Powell “should resign immediately” so “we should get somebody in there that’s going to lower interest rates.” He suggested that he’d rather have Scott Bessent, his Treasury secretary, as a replacement.

Powell has resisted Trump’s pressure, largely out of concern that Trump’s tariff plans could increase costs for American consumers. If rates are lowered too aggressively, it could lead to a resurgence of inflation.

But Trump insists that inflation is no longer a problem, and a rate cut would help make mortgages, auto loans and other forms of consumer debt cheaper. Trump has also said it would allow the US government to finance its debt more cheaply, a pressing concern as legislation signed by the president is poised to increase the federal deficit by extending tax cuts.

“LOWER THE RATE!!!” Trump wrote on social media on Thursday as he continued a near-daily drumbeat of criticism.

However, there’s no guarantee that financial markets will reduce rates on government debt even if the Fed bows to Trump’s wishes. Such a situation could lead to higher interest costs for consumers — a reminder of how monetary missteps may backfire.

Powell was nominated to the Federal Reserve Board of Governors by President Barack Obama, then made chairman by Trump during his first term. But in his second term, Trump turned Powell — who has sought to avoid politics and refrains from responding directly to the president— into one of his primary antagonists.

Trump has said that he wouldn’t directly oust Powell — “I don’t know why it would be so bad, but I’m not going to fire him,” he said last month. The Supreme Court said in May that it could block such a step.

However, Trump's allies have found other ways to make Powell uncomfortable.

Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency, also accused Powell of lying to Congress about the renovations.

“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,’” he said last week. Pulte said the situation “stinks to high heaven.”

Vought, in his own letter, said the called the initial renovation plans featuring rooftop terrace gardens, VIP dining rooms and premium marble an “ostentatious overhaul.” Vought also suggested that Powell misled Congress by saying the headquarters had never had a serious renovation, saying that an update to its roof and building systems that was completed in 2003 counts as a “comprehensive” renovation.

Fed officials did not respond to an email seeking a response to the letter. Powell said in Senate testimony last month that some of the elements in the 2021 plan such as the dining rooms and rooftop terraces are no longer part of the project for the 90-year-old Marriner S. Eccles Building.

The debate over the renovation could set up a legal battle between the White House and the Fed, which under the law is allowed to use its own judgment to establish “suitable” and “adequate” quarters for its operations.

Sung Won Sohn, a finance and economics professor at Loyola-Marymount University, said “it’s good that the central bank budget is coming under review and scrutiny.”

However, he warned against using such issues to challenge the Fed’s independence. If that’s compromised, he said, it’s “bad for the economy, that’s bad for inflation expectations and therefore long term inflation.”