Zanzibar offers investment opportunities on archipelago’s smaller islands

Zanzibar offers investment opportunities on archipelago’s smaller islands
Changuu Island, Zanzibar

In groundbreaking move to further attract foreign investors, government opens up ten island paradises for holistic development projects

The Revolutionary Government of Zanzibar is opening up ten of the archipelago’s idyllic smaller islands for high-end investment and development opportunities.

The programme, which is being implemented by the Zanzibar Investment Promotion Authority (ZIPA), further builds on the Zanzibarean government’s strategy to attract foreign investment by granting interested parties Strategic Investment Project (SIS) status.

The rollout of the SIS initiative, which offers stakeholders a host of residential and investment benefits, has already received an extremely favourable response from the international investment community since coming into effect in July.

Among the incentives are a residency permit that authorises real estate buyers, along with their partners and a maximum of four children under the age of 20, to live in the country after purchasing a property.

There is also a 50 percent exemption on capital gain on purchased properties, 100 percent foreign ownership, 100 percent exemption from worldwide income for foreigners and the added benefit of no minimum stay being required.

The government’s decision to extend investment opportunities to ten smaller islands falling outside Zanzibar’s main islands of Unguja and Pemba, is based on its vision for diversification of high-end investments.

The smaller islands or islets, boasting pristine beaches, fertile soil, abundant marine resources and  populations eager to work on potential developments, are ideal for specialised investment projects, according to ZIPA executive director, Shariff Shariff.

“The small islands surrounding Zanzibar are major assets that have enormous potential for both investors and the island’s residents,” Shariff says.

The ten islets each possess their own unique characteristics, thereby offering diverse selling points and opportunities for potential investors.

Changuu (Prison Island)

The 11.27ha islet is located about 5.6km from Stone Town, and is surrounded by shallow coral reefs. It boasts a mix of indigenous and introduced vegetation, giant tortoises, 110m of idyllic beach and a natural tidal pool.

Bawe Island

Located just south of Changuu, the 35ha islet is known for its spectacular sunrises and sunsets. About seventy percent of the islet is conserved as forest while the remaining 30% is used for tourism purposes and by local fishermen. Bawe is known for its colourful coral reefs and excellent snorkeling and pristine 550m beach. It could also soon be declared part of the Zanzibar Town Islands Marine Conservation Area.

Chumbe Island

Lying south-west of Unguja Island at the edge of the Menai Bay, Chumbe is praised for its rich marine biodiversity. It comprises 17ha of conserved forest, 55ha of coral reef sanctuary on the west part of islet, and 2.44ha which have been allocated for the development of eco-tourism operations.  Both protected areas were formally registered by the IUCN World Conservation Monitoring Centre in 1995. The islet boasts a magnificent beach, a lighthouse and small mosque. A rare coconut crab, Birgus latro, is a must-see for wildlife lovers.

Kwale Island

This 50ha islet in Menai Bay lies about 4km off the western coast of Unguja. Some 390m of white sandy beach is complemented by a natural lagoon, and coral rag bush. It is paradise incarnate and is used as the major fish camping site for local fishermen from Unguja.

Misali Island

The 9,000ha islet is relatively undisturbed compared to others parts of Zanzibar and Tanzania, and as such possesses incredible terrestrial and marine life, and is an important nesting site for turtles.  Diving, snorkeling, swimming, boating and scientific research are permitted. In the extractive zone, all legal fishing is permitted and two areas – Mbuyuni and Mkwajuni – have been designated as fishers camping areas.

Njao Island

Njao islet lies on the northwest coast of Pemba Island and has an estimated area of 474ha. The islet is characterised by its rich, fertile soil, making it ideal for agriculture. Most of its inhabitants are involved in fishing activity.


The 80ha piece of land is found south of Pemba island, and has huge potential for fishing tourism, including game fishing.

Pamunda A & B

Located in the west of the archipelago, the islets possess white beaches, a natural lagoon, and coral rag bush. They are used as the major fishing camping site for local fishermen from Unguja and are famous tourist attractions.


The 5ha island is situated northwest of Stone Town and can be reached by boat in just 15 minutes. Chapwani has an untouched beach and a spectacular reef filled with starfish and multi-coloured corals.

Zanzibar’s government recognises that these islets possess sensitive ecosystems and are already home to thriving fishing and agricultural communities. As such, potential developments require careful planning, handling, guidance and oversight, and potential investors will need to adopt a holistic approach in implementing future projects.

Says Shariff: “Our investors Expressions of Interest should provide information demonstrating that they possess experience and the ability to develop, operate and manage investment projects.

“They should also demonstrate financial capacity, and skills in conserving environments, biodiversity, cultural heritage and community development. Interested Investors should specify the intended small island/islands for investment and provide detailed information on the kind of high-end investment intended.”

Expressions of Interest must be submitted with the receipt of a US$1,500 non-refundable payment (Account name ZIPA, PBZ Account A/C No. 0400424000, Swift Code PBZATZTZ) at Maruhubi Complex, Zanzibar Investment Promotion Authority Head Office, Malawi Road, Room Number 223 or via email: [email protected] (PDF format).

The deadline for submission of Expression of Interest is 30 September 2021 at 10am (Eastern Africa Time).

Short-listed prospective investors will be contacted to proceed with other application procedures.

Further information can be obtained by visiting: or emailing [email protected]