ZACADIA CONFIRMS TO INVEST IN ZANZIBAR’S SUKUK!

Toronto, Canada – April 19, 2025.

The Zanzibar-Canadian Diaspora Association which is popularly known by its firebrand name as ZACADIA has officially announced that it is investing in the Zanzibar Sukuk 1 (SPV). 

The decision was made following a highly productive two and a half -hour Zoom meeting held today, convened by the People’s Bank of Zanzibar (PBZ) and Zanzibar Sukuk 1 (Special Purpose Vehicle). The meeting brought together key stakeholders to address outstanding concerns and clarify the structure of the Sukuk.

Speaking from ZACADIA’s office in Toronto, Vice President and  Treasurer Mr. H. S. Othman confirmed that ZACADIA is now fully on board.

“We’re not doing this for anyone else—we’re doing this for the development of Zanzibar,” stated Mr. Othman. “It’s about time we take charge of our future, and this investment is a step in that direction.”

Addressing Initial Concerns

Mr. Othman revealed that ZACADIA initially hesitated due to two primary concerns:

1. Uncertainty over whether the Sukuk was structured around profit-sharing or interest payments, a crucial distinction for ethical and Islamic finance compliance.

2. Doubts about Zanzibar Sukuk 1 (SPV)’s capacity to manage such a significant financial undertaking, given the perceived limitations in local resources.

However, both concerns were laid to rest during the Zoom meeting.

“We were impressed by the thorough explanation of the Sukuk’s Shariah-compliant profit-sharing model, and the robust institutional framework backing the project,” Mr. Othman noted. “The team behind Zanzibar Sukuk 1 clearly demonstrated their capability and readiness.”

Legal Assurance and Regulatory Backing

ZACADIA was particularly gratified by the fact that the Sukuk issuance is governed by the Capital and Securities Market Act of 1994, with full clearance from Tanzania’s Capital Markets and Securities Authority (CMSA)—making it a completely legal and regulated investment vehicle in the country.

“The legal foundation is solid, and that’s crucial for investor trust,” Mr. Othman said. “We now view this Sukuk as a credible, well-structured, and secure investment.”

Sukuk: A Proven Development Instrument

Mr. Othman emphasized that Sukuk—Islamic bonds structured around asset ownership and shared profits—have been successfully used by financial institutions around the world.
From the World Bank to the Islamic Development Bank and the International Finance Corporation (IFC), Sukuk have long served as effective tools for raising capital for infrastructure and development projects.

“If global development giants are using Sukuk, why shouldn’t Zanzibar?” he asked rhetorically. “Zanzibar deserves the same opportunities.”

A Call to Action for the Diaspora

With the closing date for the first tranche of the Zanzibar Sukuk set for April 22, 2025, Mr. Othman is calling on other diaspora organizations, institutions, and private investors—regardless of religious background—to follow suit.

“This is about building our nation. No one else will do it for us,” Mr. Othman urged. “It’s time we, as sons and daughters of Zanzibar, take the lead in shaping its future.”

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About Zanzibar Sukuk 1 (SPV):
This is the first government-backed Sukuk issued in Zanzibar, aimed at raising funds for critical infrastructure projects. The Sukuk is structured in compliance with Islamic finance principles and backed by tangible assets, ensuring both transparency and sustainability.

About ZACADIA:
The Zanzibar-Canadian Diaspora Association (ZACADIA) is a prominent organization uniting Zanzibaris living in Canada with the mission of fostering social, economic, and cultural ties between the diaspora and their homeland.

About The People's Bank of Zanzibar (PBZ):
The People's Bank of Zanzibar is one among the oldest banks in Tanzania and the only indigenous bank in Zanzibar wholly owned by the people of Zanzibar. It was established  on 30th June, 1966.