Why Invest in Zanzibar Properties

The name Zanzibar is an Arabic word that is translated as ‘the coast of black people’. The Zanzibar archipelago is a series of islands on the Indian Ocean about 16-31 miles from the mainland Republic of Tanzania.

The island has the best beaches in the world – and this is not an exaggeration. If you love lazing around in the sun, then this is the place to go. Below are a few facts that will give you an overview of the Island country.

  • Zanzibar is comprised of several islands, but two are the larger ones. Unguja is the largest one and is erroneously called Zanzibar. The other is called Pemba.
  • The capital of Zanzibar is called Zanzibar City and its most historic feature is the ancient Stone Town.
  • Due to its proximity to Equator, Zanzibar is warm throughout the year and has equal day and nights (12-hours each) like most of the East African Countries.
  • The island is home to the almost extinct Zanzibar Red Columbus Monkey, the Zanzibar Servaline Genet, and the Zanzibar Leopard.
  • Zanzibar has been home to intelligent humans (Homo sapiens) for more than 20,000 years.
  • Apart from tourism, the other economic activity in Zanzibar is spice growing. In fact, the island is sometimes fondly referred to as The Spice Island due to its cloves, nutmeg, cinnamon, and black pepper.
  • Tourism in Zanzibar is a more recent activity, driven by government promotion that caused an increase from 19,000 tourists in 1985,to 376,000 in 2016.
  • Zanzibar – UNESCO World Heritage: This magnificent space is located off the coast of East Africa and in the warmth of the expanse of the Indian Ocean. it consists of numerous small islands as well as two of the largest ones, namely: Pemba Island and Unguja (which is also referred to as Zanzibar at times).
  • Zanzibar’s marine ecosystem is an important part of the economy and contains important marine ecosystems. Moreover, the land ecosystem is the home of the endemic Zanzibar red colobus, the Zanzibar servaline genet, and the extinct or rare Zanzibar leopard.


  1. Country Stability: Zanzibar is politically, socially and economically stable. Private investments are protected under domestic law and through international conventions.
  2. Strategic Location: Zanzibar has been a trading hub for millennia. Due to her geographical location, it has become an ideal place for companies that need to do business with Mainland Africa and beyond.
  3. Abundant Resources: The amazing island of Zanzibar has abundant resources such as agricultural and marine products, lovely sandy beaches and warm sunshine, historical and cultural sites in addition to the traditional life style of Zanzibari’s. Zanzibar has recently discovered Oil and Gas which open its doors to more investment.
  4. Market Potential: Zanzibar is unique with outstanding differences from other small island economies and the world. Being part of the United Republic of Tanzania, it has a huge market potential with a population over 50mil. The United Republic of Tanzania being a member of Africa Continental Free Trade Area (AFCFTA), Zanzibar has eaasy access to the whole African market with a flexibility of export quotas to European market and American market through AGOA. Besides Free Economic Zones provides Opportunities to investors who wish to conduct free export business by putting their processing industry and repack for the foreign market.
  5. Predictable Fiscal Regime: Zanzibar has a stable and predictable fiscal regime that, among other things, recognizes the importance of the companies to recover investment costs prior to the payment of corporate tax. It also offers lucrative incentive packages to strategic investors. Foreign investors are allowed to own 100% of their businesses.
  6. Lucrative Incentive Package: Zanzibar Investment Promotion and Protection Authority Act offers lucrative package of incentives. It also provide amazing benefits and opportunities to strategic investors. For details view Incentives.
  7. Dynamic Workforce: Zanzibar offers a young and dynamic workforce. It also gives investors an opportunity to employ expatriates in key positions. The Zanzibar Investment Promotion Authority (ZIPA) is available to facilitate the engagement of local labour force as well as processing necessary documents for expatriate personnel.
  8. Investment Guarantee: Investment are well protected by law and international conventions. There will be no compulsory acquisition as stipulated in the Article 17 of Zanzibar Constitution. Zanzibar being a constituting part of the United Republic of Tanzania is a member of Multilateral Investment Guarantee Agency (MIGA) of the World Bank.  Also, Tanzania is a signatory to the Convention of Recognition and Enforcement Arbitration Award, member of International Centre for Settlement of Investment Disputes (ICSID) and a member of African Trade Insurance Agency (ATIA).
  9. Magnificent Business and Leisure Destination: The people of Zanzibar are very friendly and hospitable; and investors will find the Island a lively place for both work and leisure.
  10. Public Private Partnership: Opportunity to Partner with Government through Concession arrangements.

How do foreigners invest in Zanzibar

One of the most popular and attractive locations in the world includes a unique place, called Zanzibar or “Spice Island”. It has had a steady incline in popularity due to the many attractive features it offers both tourists and residents. This is one place anyone can easily confuse with the likes of Maldives and Mauritius, because of its white sandy beaches and crystal clear and warm ocean. Not to mention because it is a harbor it is one of the key trading locations for many businesses.

Buying a Vacation Rental Property in Zanzibar… Another way to invest in rental property is by buying and renting out a residence in a vacation destination

The concept of vacation rental investments has gained considerable momentum in recent years, and for good reason: the expansion of the economy, in addition to the advent of the private accommodation sector, has made it considerably easier for families to go on more vacations of their own.

Buying a vacation rental property requires a keen understanding of local markets and projected revenue. For investors, there are a great many reasons to focus on the region. A key factor being that Zanzibar is stable. Politically, socially and economically the region has proven itself to be a steadfast option – especially since private investments into are constitutionally protected.

Tourism: The number of tourists visiting Zanzibar has increased fivefold in the past 20 years, Back in 2000, it was reported that around 100,000 tourists visited Zanzibar, in 2019 over 500,000 tourists were recorded visiting the country.

The government, through the Zanzibar Commission for Tourism, are devoted to attracting more visitors and are actively promoting domestic tourism. Tourism is one of Zanzibar’s key economic sectors.

Though Zanzibar is a small island economy it is unique in that it is part of the Republic of Tanzania and has huge market potential. Tanzania has enjoyed relatively high economic growth over the last decade, averaging 6-7% per annum according to the World Bank.

The economy is diverse with agriculture, quarrying, mining, industry, electricity generation and services all playing a part together with tourism. Tourism is where the opportunity for investment is particularly exciting, supported by a strong and growing wider economy.

The Africa Report 2020/21, recorded GDP growth of 5.7% for Tanzania and that in 2019 the Tanzanian real estate sector had grown by 4.5%.

Between 2015 and 2016 tourism figures doubled, the government had put in place a strategic plan from 2015 that would see tourism figures hit half a million by 2020. The milestone was hit a few years early with 520,809 visitors in 2018 and then a 3.4% increase on those numbers in 2019 when 538,264 people visited Zanzibar.

With numbers firmly on an upward trajectory, there is a real appetite for luxury accommodation in Zanzibar as holidaymakers seek out the unspoiled paradise on offer.

Why wouldn’t anyone want to invest in such a rich place? There are a great many reasons to and we look at a few below.

Growth Potential Is High
Those who are looking to invest would be happy to know that as a region, all of its economic, political, and social aspects are steadfast and all of your investments are constitutionally protected. Being an island economy, it has huge market potential. Over the last 10 years, it has enjoyed a steady growth of up to 7% per annum, according to the World Bank, and the rate of poverty has significantly declined

Demand Is High
There is no doubt that this region is popular amongst the masses. With all the new developments taking place currently, the increase in tourism has also been labeled as a result. 10 years ago, around the year 2010 the number of tourists that would visit the place ranged on average around 100,000, this number more than doubled in 2019, with the numbers growing to 538,264 tourists and climbing.

The potential for investors in part of the world is growing every year, and sometimes putting your money in overseas property can be questionable if you do it yourself, however working with professional services who are knowledgeable in this area would cost you less money and headaches in the long run.

Zanzibar has a competitive advantage in the tourism industry because of its nature, cultural heritage, history and renowned tradition of hospitality. The ZSGRP, calls for innovativeness, creativity, high-quality products and services that offer unique, engaging and memorable experiences and value for money in a clean, safe and welcoming environment.

The tourism sector boasts of a wide variety of tourism options, from the historical and cultural sites such as Old Stone Town, to beaches and leisure activities. For some of these opportunities, ZIPA is open to support and facilitate entering into partnerships with private business people through PPP.


  • Up-market hotels/resorts
  • Chain hotels
  • Sports tourism
  • Conference tourism
  • Health tourism
  • Mariners
  • Special cuisine restaurants and Recreation and amusement centers