The Zanzibar government has introduced a blockchain sandbox program to encourage entrepreneurship and technological advancements. The program, powered by the Xinfin XDC network and designed by Ledgerfi IT solutions, allows startups to safely test their blockchain-based solutions within the National Blockchain Network. Zanzibar’s sandbox follows a similar initiative in Tanzania, which aims to streamline regulations for fintech startups. Both programs are expected to reduce risks for startups and attract investors.
Priority Given to Startups Promoting Financial Inclusion
The Zanzibar government has launched a blockchain sandbox program to encourage entrepreneurs to test their tech products and position the Tanzanian archipelago as a hub for innovation. Powered by the Xinfin XDC network, the sandbox was designed by Ledgerfi IT solutions to enable entrepreneurs to safely test their solutions within the National Blockchain Network.
“Our primary goal is to create a supportive environment for the development of cutting-edge technologies, including blockchain, AI, and other emerging fields,” said Seif Said, the director general of the e-Government Authority of Zanzibar.
According to a report, the archipelago’s government is now inviting interested startups to join the sandbox. However, priority will be given to startups offering digital solutions for financial inclusion, identity verification, and certification issuance. Successful innovators will have the opportunity to collaborate with experts and receive mentorship from industry leaders.
Additionally, sandbox participants with impactful solutions will receive training and join incubator programs to enhance their technical capabilities.
Sandbox Offers Relaxed Regulatory Environment
Zanzibar has unveiled its fintech sandbox, mirroring Tanzania’s framework introduced in August. The Tanzanian framework outlines eligibility criteria, application procedures and testing guidelines for pilot innovators. Approved by the government, the framework aims to boost the country’s fintech sector. It was developed in collaboration with the Tanzania Startup Association, which highlighted regulatory challenges faced by startups.
The association advocated for sector-specific sandboxes to streamline regulation and promote innovation.
Similarly, Zanzibar’s National Blockchain Network will provide a soft regulatory environment, allowing startups to test ideas before entering the market. The sandbox is expected to reduce startup risks, making them more attractive to investors.