The President of Zanzibar, Dr. Hussein Mwinyi, together with several senior leaders during the launch of the Zanzibar Sukuk
on 22 February 2025 at the Zanzibar State House
Sukuk remains the fastest-growing Islamic capital market instrument in Tanzania and is now leading among East African countries, solidifying its role as a preferred vehicle for ethical investment, infrastructure financing, and alternative capital mobilization. In 2025, this momentum accelerated further, fueled by increased investor confidence, stronger regulatory support, and broader public engagement with Shariah-compliant investment products.
As of 2025, the total value of Sukuk issued in Tanzania reached TZS 735.06 billion (US$294.024 million), underscoring the rapid growth and increasing sophistication of the country’s Islamic capital market. In 2025 alone, Sukuk issuances totaled TZS 601.317 billion (US$240.548 million), with the Zanzibar Government’s Sukuk standing out as the major contributor to this year’s remarkable performance. This strong momentum reflects deepening investor confidence and expanding demand for Shariah-compliant investment instruments. See Table 1 below - Sukuk issuance in Tanzania.
Table 1: Major Sukuk Issuances in 2025
| Issuer | Amount Offered (TZS million) | Amount Subscribed (TZS million) | Tenor | Over subscription |
| Zanzibar Quasi-Sovereign | 300,000 | 382,587 | 7 years | 128% |
| Imaan Finance (iTrust) | 5,000 | 12,580 | 3 years | 251.60% |
| CRDB Al Barakah | 42,500 | 206,150 | 5 years | 485% |
| TOTAL | 345,500 | 601,317 |
Market Analysis
The Sukuk market in 2025 was characterized by robust investor appetite, strong liquidity absorption, and increasingly diverse participation from institutional, retail, and diaspora investors. Several noteworthy trends emerged:
- The Zanzibar Quasi-Sovereign Sukuk remains the largest Sukuk issuance in Tanzania’s history, setting a benchmark for future sovereign and sub-sovereign Its 128% oversubscription demonstrates growing confidence in Sukuk as a credible financing tool for public-sector development projects.
- CRDB Al Barakah’s Sukuk achieved a historic 485% oversubscription, marking one of the strongest demand levels ever recorded in the East African Islamic Finance This overwhelming response underscores both the bank’s expanding Islamic Banking footprint and the broader shift toward Shariah-compliant investment alternatives.
- Imaan Finance solidified its position as the leading player in the retail Sukuk segment, attracting widespread participation from small and medium-scale investors seeking accessible, ethical, and well-structured investment The 251.6% oversubscription demonstrates the strength of grassroots investor demand and the growing financial literacy around Sukuk products.
