Zanzibar Clove Trade Rules: Who May Buy and Export Cloves, What ZSTC Controls, and How Mainland Cloves Differ

This guide sets out the Zanzibar clove trade as it stands on 27 October 2026: the two Acts, the ZSTC buying system, grades and prices, smuggling cases, the export desks in Unguja and Pemba, the Mainland rules for cloves grown in Tanga and Morogoro, investment through ZIPA or TISEZA, and a costed export of 5 tonnes of packed clove products.

What the law says

In Zanzibar the buyer of cloves is a state corporation named in statute. Its writ stops at the islands. Four instruments frame the trade.

• The ZSTC Act. The House of Representatives lists the Zanzibar State Trading Corporation Act as Act No. 11 of 2011. The listing describes a corporation for processing, value addition, production, trade and promotion of cloves and other agricultural products.
• The Clove Development Act. ZSTC names the Clove Development Act No. 2 of 2014 as its second legal basis. In 2017 the Zanzibar trade minister told the House that this Act makes ZSTC the only authority allowed to buy cloves, and that regulations under it target smuggling, as Mwananchi reported.
• The marketing policy. The Zanzibar Agricultural Marketing Policy of April 2013 states that ZSTC holds an exclusive monopoly in the export of cloves. It adds that ZSTC may permit private exporters to sell cloves from its own stock, and that ZSTC sets clove producer prices.
• The Union layer. Article 4(3) of the Constitution lists Union matters in a First Schedule. Customs and tariffs are Union matters, as UNU-WIDER also notes. Export tax, customs entry and the port are therefore one system for both sides of the channel.

We could not read the text of either Act. The House portal and the ZSTC download pages refused automated access on 27 October 2026. This guide therefore cites both Acts by name and number only. It gives no section numbers, and it marks the detail of the monopoly as a point to confirm.

Who should read this

• Spice processors and packers in Unguja and Pemba who grind, pack or distil cloves;
• Exporters and foreign buyers who want Zanzibar cloves under their own brand;
• Traders in Tanga, Morogoro and Dar es Salaam who buy Mainland cloves;
• Investors pricing a clove oil, ground spice or blending plant on either side;
• Boat owners, transporters and warehouse keepers who move cloves between Pemba and the Mainland coast;
• Banks and lenders financing spice inventory, who need to know who owns the cloves in a warehouse.

A Zanzibar company forms at BPRA, not BRELA. Our guide to registering a company in Zanzibar covers that step.

Who may buy and export Zanzibar cloves?

On the islands, the farmer sells to ZSTC. ZSTC buys at its own centres and, since the 2025 season, at mobile buying points in harvesting camps, as the Daily News reported on 8 September 2025. Farmers are paid through a digital payment channel. ZSTC asks farmers to avoid informal buyers.

A private company does not buy cloves from farmers in Zanzibar. It buys from ZSTC stock. The 2013 policy records that ZSTC may permit private exporters to sell cloves from that stock. So the lawful chain for a private exporter runs farmer, ZSTC, private buyer, export.

One question stays open. We could not confirm from the Act whether a processor that buys ZSTC cloves needs a fresh ZSTC consent for each export of a processed product. Ask ZSTC in writing before you sign a supply contract abroad.

Is the ZSTC monopoly still in force in 2026?

Yes, on everything we could read. Researchers at UNU-WIDER described ZSTC in May 2022 as the sole legal buyer and exporter of cloves in Zanzibar, in a working paper on clove exports. They found no liberalisation. ZSTC's own site still cites the 2011 and 2014 Acts. Press reports through May 2026 describe ZSTC paying farmers more than TZS 48 billion for the 2025/26 season through a digital payment partner.

Calls for reform exist. A presidential candidate promised TZS 50,000 a kilo in the 2025 campaign, and analysts have argued for private export licences. A promise or a paper is not a law. We found no bill, Act or Legal Notice that ends the ZSTC role. If one is published, this page will change.

The monopoly does not reach the Mainland. A Zanzibar Act does not bind a buyer in Tanga. That is why ZSTC itself set out to buy about 500 tonnes from Tanga and Morogoro farmers for 2024/25 by agreement with regional authorities, competing with other buyers there.

How are farm-gate prices and grades set?

ZSTC announces a buying price for each grade before or during each season. The 2013 policy confirms that ZSTC sets clove producer prices. During the 2011 to 2020 clove strategy, ZSTC raised the producer price from TZS 3,500 to TZS 14,000 a kilo, according to UNU-WIDER. In 2017 the minister said the government would not lower the farmer price even when world prices fell.

Recent seasons have used three grades. Secondary reports, summarised by Kilimokwanza, put the 2024/25 prices at TZS 15,000 a kilo for grade one, TZS 13,500 for grade two and TZS 12,500 for grade three. We could not read a ZSTC notice for those figures, so treat them as reported, not confirmed. Ask ZSTC for the current notice before you price a purchase from its stock.

Price drives quality and smuggling. A dryer, cleaner clove earns the top grade. A gap between the ZSTC price and prices across the border pulls cloves into informal channels. Exporters buying ZSTC stock pay a sale price that ZSTC sets separately from the farm-gate price; that price is a contract term, not a published tariff.

The Bank of Tanzania tracks the result. Its Monthly Economic Review for February 2026 shows Zanzibar clove exports of USD 32.7 million and 5.4 thousand tonnes in the year ending January 2026. The year before was USD 6.9 million and 1.5 thousand tonnes. The unit value rose to about USD 6,075 a tonne. The Citizen reported in November 2025 that the earlier slump followed global oversupply and a weak harvest. Clove exports swing with the harvest cycle, so do not budget on one year.

What happens to smuggled cloves?

Smuggling cloves out of Zanzibar is prosecuted as an economic crime. In August 2024 the Zanzibar Anti-Corruption and Economic Crimes Authority (ZAECA) charged six men from Wambaa, Pemba in the High Court of Zanzibar at Chake Chake. The Guardian reported that they were charged over 1,534.5 kg of dried cloves worth TZS 20,047,750 carried by boat towards Tanga.

The charges cited section 58(1) and (2) of Zanzibar's anti-corruption and economic crimes law and sections 3 and 25 of the Special Anti-Smuggling Unit Act. Each accused was bailed on a TZS 4,000,000 bond with two sureties. We did not find the outcome of the case or the penalty these sections carry.

• The cloves. Expect seizure on detection and forfeiture claims on conviction. The exact forfeiture rule sits in the Acts we could not read.
• The boat and vehicle. Owners risk detention of the vessel or vehicle as evidence.
• The buyer. A Mainland buyer who takes Pemba cloves without ZSTC papers buys a provenance problem with the goods.
• Street buyers. The 2017 statement warned that traders buying cloves in villages outside the official system would be prosecuted.

A seizure, a summons or a charge is a matter for an advocate from the first hour. Do not give a statement, sign a seizure note or negotiate release without counsel. Zatra's advocate handles prosecutions, seizure and forfeiture matters and disputes with ZSTC.

How do you export clove products from Zanzibar?

A private exporter in Zanzibar works through Zanzibar desks for most papers and Union customs for the shipment. The Confederation of Tanzania Industries procedure for exporting cloves, updated 6 July 2023, lists the steps below.

Food safety. Ground cloves, clove powder and spice blends are food. In Zanzibar they sit with ZFDA, not TBS or TMDA. Our note on why ZFDA and not TMDA explains the split. ZFDA runs premises and product registration and import and export permits through its RIMS portal at zfda.go.tz.

Standards. The Zanzibar Bureau of Standards works under the Zanzibar Standards Act No. 1 of 2011, also in the House listing. A buyer may ask for product certification or a test report. Agree the standard and the test in the sales contract.

Plant health. Produce leaving Unguja or Pemba is certified by the plant protection service of the Zanzibar agriculture ministry, not by TPHPA. See our guide to phytosanitary certificates for what the certificate says and when the buyer's country needs one.

Tax. The TRA guide Taxes and Duties at a Glance 2025/26 lists no export tax on cloves (F0343). It states Zanzibar VAT at 15% with exports of goods zero-rated. A Zanzibar exporter registers for VAT with ZRA when taxable turnover reaches TZS 100 million a year (F0246). Our page on Union and non-Union taxes sets out which desk collects what.

What rules apply to cloves grown on the Mainland?

On the Mainland, cloves are grown mainly in Tanga and Morogoro regions. We found no Mainland clove board and no state buyer. A farmer may sell to any lawful buyer, including ZSTC when it buys there.

• Crop regulator. No Mainland Act names cloves as a scheduled crop that we found. The Food Security Act, Cap. 249 lets COPRA register and license dealers in "other produce" that the Minister gazettes. We found no notice adding cloves. Ask COPRA in writing, since it published new registration and licensing regulations in September 2026, as trade press reported.
• Business licence. A buyer that exports needs a Class A licence from BRELA on TNBP. Exportation of agriculture goods costs TZS 100,000 for the principal place and TZS 80,000 for each branch (BLA121, F0865). A farmer selling own produce not materially processed needs no business licence (NEW-08-16).
• Citizens only on the farm. GN 487A of 2025 reserves on-farm crop purchasing for citizens (NEW-08-14). A foreign-owned company may buy from a licensed aggregator or a co-operative, not at the farm gate.
• Produce cess. District councils may charge the buyer a cess of up to 3% of the farm-gate price. They may not charge the seller (F0547, NEW-05-27). Morogoro officials have spoken of a 3% levy on clove sales. Our guide to produce cess covers receipts and movement permits.
• Plant health. TPHPA issues the export phytosanitary certificate under the Plant Health Act, 2020. Its fee schedule sets a commercial certificate at TZS 130,000. Inspection costs TZS 25,000 up to 1,000 kg plus TZS 13 for each extra kilo for cash crops (F0376).
• Export tax. None. Cloves are not on the Export Tax Act Schedule (F0343).

Our checklist for exporting from Tanzania covers TANCIS, the certificate of origin and the buyer's documents.

Mainland and Zanzibar side by side

Union matters follow the goods; non-Union matters follow the premises. A Pemba factory pays Zanzibar VAT and holds Zanzibar licences, but its container still clears through Union customs.

Can investors set up clove processing or value addition?

Yes. Value addition is where private capital fits, because the raw buying is closed in Zanzibar. Ground cloves, clove stem and bud oil, spice blends and retail packs all start from cloves bought lawfully. The ZSTC Act itself names value addition as a ZSTC function, so expect ZSTC to be a competitor as well as a supplier.

In Zanzibar. The Zanzibar Investment Promotion Authority registers projects under the Zanzibar Investment Promotion and Protection Act No. 14 of 2018. The Zanzibar eRegulations portal lists minimum capital of USD 300,000 for a foreign investor and USD 100,000 for a local investor. It also notes a 5% ZIPA service charge on the value of goods exempted from VAT under the local purchase incentive. Confirm the live figures with ZIPA, and read our note on investing through ZIPA.

On the Mainland. TISEZA issues the certificate of incentives. The application fee is TZS 6,000,000 for a foreign investor or joint venture and TZS 4,000,000 for a domestic investor (TZ-01). Minimum capital is TZS 1,500,000,000 foreign-owned and TZS 150,000,000 Tanzanian-owned (TZ-02). Registration with TISEZA costs TZS 300,000 (TZ-03). See the TISEZA certificate page.

A processor needs secure supply before it needs a building. In Zanzibar that means a written supply agreement with ZSTC stating grades, volumes, price basis and export consent. On the Mainland it means aggregator or co-operative contracts that respect the citizen-only farm gate.

Worked example: a 5 tonne value-added clove export

Kisiwa Spice Packers Ltd is a hypothetical company registered at BPRA with a factory in Pemba. It ships 5,000 kg of clove products to a buyer in the Gulf. The consignment holds 4,000 kg of whole cloves in 500 g pouches and 1,000 kg of ground cloves in 100 g jars. All prices and the exchange rate below are illustrative.

The USD 6,100 input price sits close to the Bank of Tanzania unit export value of about USD 6,075 a tonne. ZSTC's actual sale price is a contract term, so replace it with the quoted figure. The margin must still carry pouches, jars, labour, ZFDA registration, freight to port and the cost of money.

The same consignment from Tanga. A hypothetical Mainland packer buys 5,150 kg through a licensed aggregator at an illustrative TZS 15,000 a kg, or TZS 77,250,000. The council cess at the 3% cap adds up to TZS 2,317,500 (F0547). The TPHPA certificate costs TZS 130,000 and inspection TZS 25,000 plus TZS 13 on 4,000 extra kilos, or TZS 77,000 (F0376). The annual Class A export licence costs TZS 100,000 (BLA121). Government charges total TZS 2,624,500, about USD 1,050 at an illustrative TZS 2,500 to the dollar. Zatra's fee, if engaged, is quoted separately and is never mixed into those charges.

What to do now

1. Fix the side of the channel. Decide whether the factory and the cloves are in Zanzibar or on the Mainland, because every desk follows from that.
2. Write to ZSTC. For Zanzibar cloves, ask ZSTC in writing for the sale price by grade, the volume available and the export consent for each product you plan to ship.
3. Form the right company. Register at BPRA for Zanzibar or BRELA for the Mainland, then take the trade or Class A licence for exporting.
4. Register the food. Register premises and products with ZFDA in Zanzibar or TBS on the Mainland before the first export order.
5. Book plant health early. Ask the buyer whether its country needs a phytosanitary certificate for whole or ground cloves, then book the Zanzibar service or TPHPA.
6. Keep provenance papers. Hold ZSTC sale documents, cess receipts and movement papers for every batch, so a customs officer or buyer can trace the cloves.
7. Choose the investment route. Model ZIPA or TISEZA capital thresholds before you sign a lease or order a mill.
8. Call an advocate on any seizure. Route a detention, charge or dispute with ZSTC to an advocate before you respond.

Key dates

ZSTC announces buying arrangements for each season. Ask ZSTC for its season notice before you schedule production.

How Zatra helps

Zatra's agriculture and trade desk prepares the file for a clove or spice business on either side. We draft the ZSTC supply request, form the company at BPRA or BRELA, take the export licence and line up ZFDA, plant health and certificate of origin papers. Our import and export compliance service handles the shipment file. Our TISEZA registration and foreign investor setup services cover the investment route.

Government charges are paid at the official rate against the authority's control number or receipt. Zatra's fee is separate and agreed in writing; see pricing. Zatra does not decide or guarantee any authority's outcome. Prosecutions, seizure, forfeiture, disputes with ZSTC and formal legal opinions go to Zatra's advocate.

Sources and status

Accurate as at 27 October 2026. Settled: ZSTC and its two Acts by name and number, ZSTC as sole buyer from Zanzibar farmers, the export monopoly in the 2013 policy, no export tax on cloves, and the Mainland cess, licence and plant health rules. Verify: grade prices, the ZSTC sale and consent terms, Zanzibar desk fees and ZIPA thresholds. Unknown: the section numbers and penalties of the 2014 Act, and whether COPRA regulates cloves.

• Acts of 2011: Zanzibar House of Representatives. Accessed 27 Oct 2026.
• Who we are: Zanzibar State Trading Corporation, undated. Accessed 27 Oct 2026.
• Zanzibar Agricultural Marketing Policy: Revolutionary Government of Zanzibar, April 2013. Accessed 27 Oct 2026.
• Monthly Economic Review, February 2026: Bank of Tanzania, March 2026. Accessed 27 Oct 2026.
• Taxes and Duties at a Glance 2025/26: Tanzania Revenue Authority, July 2025. Accessed 27 Oct 2026.
• Plant health services fees: TPHPA, 12 Jul 2025. Accessed 27 Oct 2026.
• Food Security Act, Cap. 249 R.E. 2023: COPRA. Accessed 27 Oct 2026.
• Services to investors: Zanzibar eRegulations, undated. Accessed 27 Oct 2026.
• Export of cloves: Confederation of Tanzania Industries, updated 6 Jul 2023. Accessed 27 Oct 2026.
• Determinants of clove exports in Zanzibar: UNU-WIDER, May 2022. Accessed 27 Oct 2026.
• The Guardian, 29 Aug 2024; Mwananchi, 27 Jul 2017; Daily News, 2024/25 season and 8 Sep 2025; The Citizen, 27 Nov 2025: linked in the text. Accessed 27 Oct 2026.

Figures to confirm before you act

• ZSTC grade prices: the reported 2024/25 figures of TZS 15,000, 13,500 and 12,500 a kilo need the ZSTC season notice
• ZSTC sale price and export consent: contract terms for buying from ZSTC stock
• Clove export permit and ZFDA health certificate: TZS 0 on the CTI page of 2023; confirm with each desk
• Zanzibar phytosanitary fee: not published in the sources read
• Certificate of origin: assessed on issue by ZNCCIA or TCCIA (F0341)
• ZIPA thresholds: USD 300,000 foreign and USD 100,000 local on eRegulations; confirm with ZIPA
• COPRA scope: whether cloves are gazetted as other produce under Cap. 249
• Produce cess: each council's by-law rate up to the 3% cap (F0547)
• Register lines cited: F0343, F0376, F0547, NEW-05-27, BLA121, F0865, F0246, NEW-08-01, NEW-08-14, NEW-08-16, F0881, F0341, TZ-01, TZ-02 and TZ-03 at 26 September 2026; the control number governs on payment

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.