Tether’s African Expansion Continues with Landmark Zanzibar Partnership
On July 1, 2025, Tether signed a Memorandum of Understanding (MoU) with the Zanzibar e-Government Authority (eGAZ) to drive blockchain adoption and digital asset education across the archipelago.
This partnership, born from high-level talks between Ardoino and Minister Soraga, aligns with Tether’s broader strategy to strengthen Africa’s digital economy through education, regulatory clarity, and innovative financial tools. The initiative focuses on three key pillars:
- Blockchain Education and Developer Training: Tether will collaborate with local universities and institutions to integrate blockchain and digital finance into curricula, offering workshops and training programmes to empower Zanzibar’s youth. These efforts aim to build local capacity and promote a new generation of tech innovators.
- Stablecoin Integration: Tether is exploring the integration of its stablecoins, USDT (pegged to the US dollar) and XAUT (pegged to gold), into Zanmalipo, Zanzibar’s government-operated payment platform. This could enable residents to use stablecoins for everyday transactions, reducing reliance on traditional banking systems.
- Mobile-Based Innovation: By supporting mobile-based digital wallets, Tether aims to enhance accessibility and drive local fintech innovation, leveraging East Africa’s high mobile penetration rate (over 80%) to bridge financial inclusion gaps.
Zanzibar’s Crypto Ambitions
Zanzibar’s crypto market, though still relatively young, is gaining adoption through informal peer-to-peer transactions and localised experimentation.
The government’s recent launch of a blockchain sandbox programme underscores its commitment to encouraging entrepreneurship and innovation.
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The partnership with Tether positions Zanzibar as a pioneer in practical blockchain adoption, potentially making it the first jurisdiction to integrate stablecoins into public payment systems.
By integrating USDT and XAUT into Zanmalipo, Zanzibar could offer residents and businesses access to stable, borderless financial instruments.
This move aligns with the government’s goal of reducing dependency on cash-based systems and promoting inclusive financial frameworks, particularly in rural areas where formal banking is limited.
Stablecoins, with their low volatility and smartphone accessibility, could redefine cross-border payments, savings, and business transactions.
Tether’s Broader African Strategy
The Zanzibar partnership is part of Tether’s expanding footprint across Africa, following similar initiatives in South Sudan, Uganda, and the Republic of Guinea.
In Guinea, Tether signed an MoU to advance blockchain education, while in Nigeria and Ghana, it partnered with Quidax to educate 15,000 people on digital assets.
Tether’s investment in platforms like Shiga Digital, which provides blockchain-based financial solutions, and its support for 100,000 kiosks across the continent further demonstrate its commitment to Africa’s digital transformation.
Tether’s focus on Africa is strategic: the continent’s high mobile penetration, along with uneven financial inclusion (only 48% of East Africans have formal bank accounts), creates a fertile ground for stablecoin adoption.
By promoting regulatory clarity and education, Tether aims to move Africa’s crypto ecosystem from informal peer-to-peer transactions to a compliant, scalable framework.
Why This Matters for Africa’s Fintech Ecosystem
The Tether-Zanzibar partnership could have far-reaching implications for East Africa’s fintech landscape:
- Financial Inclusion: With stablecoins integrated into Zanmalipo, Zanzibar could offer unbanked populations access to secure, digital financial tools, mirroring the success of mobile money platforms like M-Pesa in nearby Kenya.
- Economic Growth: By enabling faster, cheaper cross-border transactions, stablecoins could boost trade and entrepreneurship, particularly for SMEs.
- Innovation Hub: Zanzibar’s blockchain sandbox and educational initiatives position it as a testing ground for crypto innovation, potentially attracting global investors and tech talent.
- Regulatory Leadership: As African countries explore central bank digital currencies (CBDCs) and crypto regulations, Zanzibar’s partnership with Tether places it ahead of the curve.
Investor and Stakeholder Opportunities
For investors, this partnership signals Zanzibar’s emergence as a crypto-friendly destination. Key opportunities include:
- Stablecoin Adoption: The potential integration of USDT and XAUT into Zanmalipo could drive demand for Tether’s stablecoins, enhancing their utility in Africa.
- Fintech Growth: Zanzibar’s focus on mobile-based wallets and blockchain education could spur local startup activity, creating investment opportunities in agritech, healthtech, and fintech.
- Regional Impact: Tether’s Africa-wide strategy, including investments in platforms like Shiga Digital, suggests a growing ecosystem for blockchain-based financial solutions.
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However, challenges remain. Regulatory uncertainty, as seen in Kenya’s past scrutiny of crypto firms, could complicate stablecoin integration.
Additionally, ensuring widespread digital literacy and infrastructure access will be critical to the initiative’s success.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.