Since its start in 1989, seaweed farming has contributed significantly to the economy of the country, through both revenue paid to the government and improvement in peoples’ economy. The current production from Eucheuma and Kappaphycus species ranges from 6,000 – 10,000 tonnes per year. However, seaweed has been farmed and exported in bulk thus reducing the price paid to the farmers and increasing the country’s dependence on international markets. To improve the economy of the farmers, it is time to add value to the seaweed and thus improve the farmers’ gains from the industry and hence improve their economics. These innovation opportunities include semi processing of the seaweed i.e. to extract the gel, carrageenan, in the country and export it, and to make value added products such as soap, food snacks, and fabric. In addition, the farming of a new seaweed species such as Gracilaria will enable the production of a different gel, agar that has been shown to be suitable in laboratory cultures. The innovation opportunities will not only raise the prices paid in the world market but will also open channels for domestic market and make the seaweed farming industry more competitive with value-added products that will benefit Zanzibar and the local community.