This study seeks to examine and analyze the prominent factors that affect Zanzibar’s export performance. Specifically this study looks at the impact of human capital development in developing the Zanzibar economy, analyzes the contribution of FDI in boosting export activities and lastly evaluates the price effect of major export products in export performance. We analyze the determinants of Zanzibar’s export performance and the analysis is carried out using Ordinary Least Square method, on time series data covering the period 1980–2005. The study also examines how the factors have been influencing Zanzibar export performance.