In May 2002, the Revolutionary Government of Zanzibar (RGoZ) launched its Zanzibar Poverty Reduction Plan (ZPRP), which put poverty reduction at the center of its policy making in Zanzibar. In parallel, the RGoZ also engaged in a reconciliation process with the opposition party to end a long-standing political standoff which went back to at least the 1995 Zanzibar presidential elections, and which was rekindled during the 2000 elections and had led to a severe scaling back or complete suspension of development assistance to Zanzibar by many donor nations and agencies.

The so-called “Mwafaka agreement” signed between the ruling Chama Cha Mwapindizi (CCM) party and the leading opposition party the Civil United Front (CUF) in 2001 created the basis for renewed efforts to undertake economic and social development and the reengagement of donors to support Zanzibar’s development and poverty reduction efforts.