Introduction

Zanzibar State Trading Corporation (ZSTC) is a Government Institution based in Zanzibar. ZSTC was established under the Public Enterprise Decree No. 39 of 1966 through Zanzibar State Trading Order Section 2(1) of 1968.  The Corporation was established to replace the functions of the Clove Growers Association (CGA).  However, ZSTC was specifically charged with responsibilities of clove development, processing essential oils and other agricultural produce as well as conducting all necessary business in connection with the supply and distribution of national commercial crops.

For many decades, the production and marketing of clove and its allied products has been the economic backbone of Zanzibar.  Up until now, Zanzibar relied heavily on the clove sector to generate resources for its socio-economic development particularly the generation of foreign exchange and balance of trade.  Due to that fact, the Revolutionary Government of Zanzibar has decided to take all the efforts and means to revive, strengthen, and further develop the ZSTC so that it can be increasingly productive, profitable and is globally competitive.

In recent years, ZSTC has been facing a number of challenges that made it vulnerable to both production and marketing threats and declining competitiveness.  Furthermore, the constantly changing clove and clove products customer requirements and wants, shifting demands and dynamics, recent scientific and technological advances, the ongoing global financial crises that has created a widespread contraction in industrial production not seen since the first oil shock in the 1970’s; the shift in manufacturing know how and techniques; the proliferation of ICT in industrial applications and manufacturing; the global overcapacity and declining demand for Zanzibar clove products and services; and the global strategic rivalries that are likely to revolve around trade, investments and technological innovation and acquisition in the next half of the century.  For that purpose, the Revolutionary  Government of Zanzibar has set a ten-years of  Clove Development Strategies with its objective is  to revamp clove production and bendable both marketing and trading activities.

In implementing ten-years (2011-2021) reforms, as one of the measures to readress the above mentioned problems, for ZSTC to be more effective and efficient, is to undertake a thorough reorganization of its fanctions which will include review of its status, mandates, organization and it current cost structures.  Others include review of the governance, business systems and processes.  The purpose of this process is to ensure the strategic repositioning of ZSTC so that it can be in strategic fit with changing customer needs, national policies and strategies including MKUZA II; to enable it to compete effectively in the local and international market; and to continuously enhance excellence and cost effectiveness in products and service delivery.