Zanzibar

Investment
Guide

Your Gateway to
Invest in Zanzibar
Table of Contents
MESSAGE FROM THE PRESIDENT i
MESSAGE FROM THE MINISTER ii
MESSAGE FROM THE EXECUTIVE DIRECTOR iii

1. ZANZIBAR AT A GLANCE 1
2. WHY INVEST IN ZANZIBAR 4
3. INVESTMENT OPPORTUNITIES 5
4. HIGH END INVESTMENT IN SMALL ISLANDS 15
5. FREE ECONOMIC ZONES 16
6. INVESTMENT FACILITATION AND AFTERCARE SERVICES 22
7. INVESTMENT INCENTIVES 33
8. ABOUT ZIPA 35
MESSAGE FROM THE PRESIDENT
Zanzibar has opened doors for domestic and foreign sustainable investments
to achieve the economic transformation and aspiration of Zanzibar Develop-
ment Vision 2050. It is my pleasure to present the revised version of the
Zanzibar Investment Guide (a Gateway to Invest in Zanzibar) that will be a
crucial tool for realization of Zanzibar Development Goals for providing all
relevant information regarding investment in Zanzibar.

The Zanzibar Investment Guide was revised to highlight Blue Economy invest-
ment opportunities particular high-end investment in small islands and other
offshore and onshore related investment activities. In addition, the guide was
necessitated to reflect the amendments of the Zanzibar Investment Promotion
and Protection Authority Act. No.14, 2018 which bring the new investment
incentives for strategic investment.

It is my sincere hope and conviction that this revised guide will be helpful to
our esteemed partners in development, both local and foreign investors and
will make Zanzibar more attractive and competitive investment destination,
regionally and globally.

I’m delighted to personally extend a warm welcome to prospective investors

across all walks of the world to come and take advantage of the conducive and
friendly business environment by investing in Zanzibar.

We therefore look forward to host you and partnering with you for mutual
benefits.

Ahsante.
Karibuni sana.

DR. HUSSEIN ALI MWINYI

PRESIDENT OF ZANZIBAR AND
CHAIRMAN OF THE REVOLUTIONARY COUNCIL.
MESSAGE FROM THE MINISTER
Having recognized the role of dissemination of relevant investment informa-
tion to various stakeholders, Zanzibar Investment Promotion Authority (ZIPA)
has revised its Zanzibar Investment Guide to accommodate all necessary
information regarding investment in Zanzibar. I’m highly delighted on the rich
information provided in this guide.

The revised investment guide details the overview of Zanzibar as an invest-

ment destination, details on why invest in Zanzibar, the potential investment
opportunities available in Zanzibar. It also details on high-end investment in
small islands and Free Economic Zones. Furthermore, the guide elaborates
the details information on the procedures for the application of investment
certificate in Zanzibar. Lastly, the revised guide ends to provide the lucrative
incentives and mentioned the responsibilities and functions of the main
government entity responsible for investment promotion, facilitation and
aftercare services in Zanzibar.

I take this opportunity to welcome all the prospective investors who seek to
investment in our beautiful islands of Zanzibar.

We look forward to working with you as a collaborative partner in responsible

and sustainable development.

Thank you all.

HON. MUDRIK RAMADHAN SORAGA

MINISTER OF STATE, PRESIDENT’S OFFICE,
LABOUR, ECONOMIC AFFAIRS AND INVESTMENT.
MESSAGE FROM THE EXECUTIVE
DIRECTOR (ZIPA)
Zanzibar Investment Promotion Authority (ZIPA) is your gate for investing
in Zanzibar, and the gate is wide open. ZIPA is at the forefront of the
investment drive in Zanzibar and we warmly welcome investors from
across the globe to join us in this paradise of endless opportunities.

The revised investment guide details the overview of Zanzibar as an

investment destination, details on why invest in Zanzibar, the potential
investment opportunities available in Zanzibar. It also details on high-end
investment in small islands and Free Economic Zones. Furthermore,
the guide elaborates the details information on the procedures for the
application of investment certificate in Zanzibar. Lastly, the revised guide
ends to provide the lucrative incentives and mentioned the responsibilities
and functions of the main government entity responsible for investment
promotion, facilitation and aftercare services in Zanzibar.

I take this opportunity to welcome all the prospective investors who seek to
investment in our beautiful islands of Zanzibar.

We look forward to working with you as a collaborative partner in

responsible and sustainable development.

Thank you all.

SHARIFF A. SHARIFF
EXECUTIVE DIRECTOR,,
ZANZIBAR INVESTMENT PROMOTION AUTHORITY (ZIPA)
01 Your Gateway to Invest in Zanzibar

ZANZIBAR
AT A GLANCE

Zanzibar Population
About 1.6 million
Zanzibar is an archipelagic of two (2019/20 HBS), at
growth rate of 2.8%.
main islands of Unguja and Pemba
and more than 50 islets.
Location:
Size It is located about 35 km
It covers a land area of off the cost of East Africa
2,643 square kilometers between 5 and 7 degrees
(Unguja 1658 and Pemba south of the Equator and
985) and an Exclusive distance of about 257.56
Economic zone (EEZ) nautical miles (477.32
area of 223,000 square km) and about 73 km (24
kilometers. min) by flight to Tanzania
Mainland.
02 Your Gateway to Invest in Zanzibar

GDP Growth rate:

7.0% (2019).
Political: GDP Per capita:
USD 1,099 (2019).
Zanzibar is a Semi-Autonomous part of United
Republic Tanzania, with an autonomous Govern- Inflation Rate:
ment that has the President Cabinet, Legislature 3.4% (2019).
and Judiciary System.
Currency
Tanzanian shillings (TZS).
Weather Exchange Rate
It is tropical, hot & sunny. 1USD: TZS 2,300 (2021).
On average there are
over 2750 hours of Culture
sunshine per year.
Swahili culture (cocktail of
African, Arabian and Indian).

Accessibility: Official Language

Kiswahili & English.
It is accessible by air and sea. It has its own both
airports and seaports which serve both domestic Local time:
and international flights. 3 hours ahead GMT.
2 WHY INVEST IN ZANZIBAR?

Stability and Investment Guarantees Market Potential

Zanzibar is politically, socially and econom- Zanzibar is unique with outstanding
ically stable. Private investments are differences from other island small
protected under domestic laws and economies in the world. Being part of the
through international conventions. The United Republic of Tanzania, it has huge
legal and regulatory framework is condu- market potential with a population of
cive to investment. over 50 milion. Since the United Republic
of Tanzania is a member of East African
Community (EAC) and Southern African
Strategic Location Development Community (SADC),
Zanzibar has been a trading hub for millen- Zanzibar has easy access to a market
nia. Due to her geographical location, it has area with over 300 million people.
become an ideal place for companies that Besides, Free Economic Zones provide
need to do business with mainland Africa opportunities to investors who wish to
and beyond. conduct re-export business by putting
their processing industries and repacks
for the foreign market.
Abundant Resources

Zanzibar has abundant resources in the Predictable Fiscal Regime

areas of agriculture and marine industry. Zanzibar has a stable and predictable
Its lovely sandy beaches and warm fiscal regime that, among other things,
sunshine make it conducive for tourist recognizes the importance of the
investment. Zanzibar has recently companies to recover investment costs
discovered oil and gas which opens its prior to the payment of corporate tax.
doors to more investment.
Magnificent Business and Leisure
Workforce Destination
The people of Zanzibar are very friendly
Zanzibar offers a young and dynamic
and hospitable; and investors will find
workforce. It also gives investors an
the Island a lively place for both work
opportunity to employ expatriates in key
and leisure.
positions. The Zanzibar Investment Promo-
tion Authority (ZIPA) is available to
100% Foreign ownership is allowed
facilitate the engagement of local labour
force as well as processing necessary Zanzibar offers lucrative incentive
documents for expatriates. packages to investors, where foreign
investors are allowed to own hundred
percent of their businesses.

04 Your Gateway to Invest in Zanzibar

3 INVESTMENT OPPORTUNITIES

THE BLUE ECONOMY

In the context of Zanzibar, Blue economy
means the sustainable use of the sea,
coast and other water bodies. The BE in
Zanzibar covers fisheries and aquaculture,
maritime trade and infrastructures,
ecotourism, energy sector and processing
industries for marine products.

Tourism
Zanzibar has a competitive advantage in
the tourism industry because of its nature,
cultural heritage, history and renowned
tradition of hospitality. Investment Oppor-
tunities include:

Up market hotels/resorts specifically

chain hotels
Sports tourism
Conference tourism.
Health tourism
Heritage tourism
Mariners
Special cuisine restaurants (Joint
venture)
Amusement and recreation activities
Tour operation (Locals only)

05 Your Gateway to Invest in Zanzibar

 FISHERIES AQUACULTURE

Zanzibar is surrounded by territorial waters Zanzibar has a vast space of about 600km
totaling 4,450 km2, which provide ample of coastal line for the local aquaculture
opportunities for fishing and Aquaculture. operations and also lies on the crossroads of
Zanzibar is also surrounded by many reefs that many rare marine resources and biodiversity
drop off into vertiginous crevasses 40 meters of about 1400 species like sea cucumber,
deep, wreathed in a plethora of marine species, milkfish and other organisms. Zanzibar is
undersea mountains, and gorgonians. endowed with many small water bodies that
include many bays, lagoons, tidal flats that
Zanzibar is blessed with 20,000ha of mangrove provide ideal sites for aquaculture activity like
forests along her coastline. Zanzibar shares cultivation of seaweed.
Exclusive Economic Zone (EEZ) of about
223,000 km2 which is the pathway of major Seaweed is a commodity with a high
Indian Ocean currents which favor abundant investment potential; it is currently produced
fish stocks making the area have various in 88 constituencies and employs 15,859
fish hotspots suitable for deep-sea fishing. farmers, the majority of whom are women.
Zanzibar's fish reserves are among the largest Seaweed is a lucrative investment opportuni-
on the Eastern Coast of Africa. Zanzibar has ty due to its numerous health, wellness, and
two fishing seasons February to May and July esthetic benefits.
to September.
Aquaculture Opportunities
Fisheries Investment Opportunities: Seaweed cultivation.
Fish farming.
Deep-sea fishing (snappers, emperors, Value addition in seaweed production.
tuna, swordfish, marlin, kingship, sailfish) Establishment of hatcheries.
Construction of boat building factory Pearl Farming.
Ice making plants
Establishment of dry dock fishing vessels
facilities
Manufacturing of fishing gears.

06 Your Gateway to Invest in Zanzibar

MARINE TRADE AND TRANSPORTATION

Zanzibar vision is to become a Marine service harbor. This will create various investment
opportunities across the Zanzibar Coastline.

Investment Opportunities:

Integrated harbor
Development of marine service harbor
Cargo and Shipment
Cruise ports
Transport Hub

ENERGY (OIL & GAS)

The high rate of economic growth in

Zanzibar, combined with the development of
the tourism sector, has increased energy
demand. This demand creates a potential
market for renewable energy investment.

Investment Opportunities:

The potential source of energy available

in Zanzibar as per an EU study conducted
in 2017 are solar and wind.

Zanzibar has huge potential for oil and

natural gas.

07 Your Gateway to Invest in Zanzibar

 OTHER INVESTMENT OPPORTUNITIES
ICT, MEDIA AND TELECOMMUNICATION

Zanzibar has a robust legislative framework for facilitating Information Communication

Technology (ICT) and media services. The telecommunication system is also another avenue
in which the country has a strong regulatory framework that governs the sector and
supports the investment.

Investment Opportunities:
Telecommunication services Publishing activities
Media company Programming and broadcasting activities
ICT Data centers and hubs Computer programming, consultancy and related
activities

MANUFACTURING

Zanzibar is committed to developing a modern manufac-

turing industry with backward and forward linkages.
Due to their immediate social-economic linkages and
development impact, the following opportunities are
among the preference.

Food Agro-processing Industries for Milling, Process-

ing, Packaging and Canning

Meat, fish and poultry products;

Horticulture Food products: vegetables and fruits;
Natural sweetness: sugar, honey and their derivative
products;
Salts: Rock salts and sea salts;
Dairy Products: milk and milk products;
Beverages: soft drinks and organic juices; Natural
Food Additives: spices, seaweed and culinary herbs

08 Your Gateway to Invest in Zanzibar

 Apparel and Beauty Agriculture
Products Industries
The climate of Zanzibar allows
Garments;
different types of crops,
Cosmetics and fragrances;
vegetables and fruits to be
grown and processed. There is,
Building and Construction therefore, great potential for
material industries agro-related industries which
private investors can engage in.
Household electrification material for
wiring and lighting; In Zanzibar, you only enjoy
fresh fruits, fresh vegetables
Sanitary ware, ironmongery and
and freshly brewed fruit juice
plumbing accessories;
of your choice-a healthy way of
Bricks and building blocks; life. Investment opportunities
include:
Construction aggregates;

Wall Protection Paints, Wallpapers Crop Production

and Roofing Materials;

Wood Building Columns, Panels and Flower production in green

Decorative Products; houses
Fruit and vegetable produc-
Construction stones, Decorative and tion through hydroponics
Paving Stones; techniques
Agro processing and value
Building Construction Glass and addition
Decoration Glass/Glassware; Exportation of fresh fruits
such as oranges, rambutan,
Gypsum Building Columns & Panels,
dorians, mangoes and
and Decorative products.
pineapples

09 Your Gateway to Invest in Zanzibar

 Animal Production

Dairy farming
Animal feed production
Poultry farming and processing
Construction of modern slaughter
house Establishment of parent
stock farms with hatchery

Spices

For centuries Zanzibar has been

exporting quality exotic home-grown
spices to the world market. Our famous
traditional spice is clove. Others are
cinnamon, cardamom, nutmeg, ginger,
black pepper and chilies.

Untapped opportunities in spices are

the 'value addition' and processing
by-product such as perfumes,
perfumed soap, medication and food
processing items.

10 Your Gateway to Invest in Zanzibar

 Real estate Development

Real estate is an emerging

business in Zanzibar. Demand
for residential, industrial and
commercial purposes buildings
is on the rise in Zanzibar. The
opportunities are:

Residential and commercial

buildings Business/Industrial
Parks
Shopping Malls
Mixed-use development
Construction of ZIPA
Business Tower in Pemba
under concession arrange-
ments

11 Your Gateway to Invest in Zanzibar

Stone Town Social and Finance Service Sectors

The Stone Town of Zanzibar boasts a The provision of social services to

nearly preserved urban fabric and the public is the priority area for
townscape dated from 18th Century, as the Government of Zanzibar. To
well as many excellent buildings that this end, The Revolutionary
reflect its unique culture, which has Government of Zanzibar has
brought together and homogenized liberalized the provision of social
various components of African, Arab, and other basic services in health,
Indian, and European cultures over education, insurance, banking and
millennia. In 2000, Zanzibar was other sectors.
inscribed as a UNESCO World Heritage
Site with Outstanding Universal Value. There is significant increasing
It is home to 2,770 tall houses as well demand for quality and profes-
as numerous ancient memorials and sionally delivered services in all
attractions. sectors. The Government as
thereby invested in skills and
Due to the area's global historic classi- development and continues to
fication, the stone town is reserved for attract private investment in these
only small-scale real estate develop- social services sectors.
ment such as hotel, restaurant and
refurbishing building for offices and Health Care Opportunities
like. Health Research Institute
Pharmaceutical industries
Health City
Private Hospitals
Establishment of specialized
hospitals and diagnostic
centers

13 Your Gateway to Invest in Zanzibar

Education Investment Opportunities Aviation Services

Vocational Training Centres, Zanzibar is well-connected to the rest

Research and Innovation Centres of East Africa, the Common Wealth, and
Establishment of maritime institutes the Gulf countries due to its strategic
Establishment of modern colleges geographical location. Zanzibar is
for hospitality industry served by major international airlines
such as Qatar Air, Oman Air, and
Financial & Insurance Services Lufthansa, to name a few. The recently
Investment Opportunities completed airport terminal has a
capacity of 2 million passengers
Establishment of Financial services per year, increasing the number of
including investment banks investment market opportunities.
Establishment of insurance
business Investment Opportunities

Cargo and ground handling services

Establishment of airline services
Aircraft maintenance

14 Your Gateway to Invest in Zanzibar

4 HIGH END INVESTMENT
IN SMALL ISLANDS
Zanzibar is an archipelago made up of
two main islands, Unguja and Pemba, as
well as several smaller islands (islets).
In total, there are estimated to be
fifty-seven (57) islets in Zanzibar, 32 in
Pemba, and 25 in Unguja, with nine (9)
in Pemba and two (2) in Unguja being
inhabited. All islets offer unique invest-
ment opportunities that are tailored to
their nature and diversity.

Investing in Small Islands

Zanzibar welcomes investments in Investment Opportunities in Small Islands
specially selected islets with High Ends
Investment projects that do not disturb Zanzibar islets provide a unique and untapped
the delicate nature of both the terrestri- investment opportunity in high-end tourism,
al and marine environments, as well as including the following:
the islets' neighboring communities. An
islet that has been opened up for invest- High-end boutique and luxury hotels
ment is made available to the public Restaurants, including specialty cuisines;
through a transparent and competitive Nature and adventure activities such as
bidding process, which is followed by a water sports, scuba diving, and transporta-
biodiversity inventory study conducted tion;
by the Government to provide a baseline Educational tourism;
for protection and development Nightlife activities
guidance.

The successful bidder receives a Land

Lease Agreement. In exceptional
circumstances, the Government may
lease an islet, a portion of an islet, or a
cluster of islets directly to an investor
with an exceptional track record of
major investments that have demon-
strated environmental stewardship or
for strategic investment.

16 Your Gateway to Invest in Zanzibar

5 FREE ECONOMIC
ZONES
Free Economic Zones (FEZs) are geographical areas
that have more enticing incentivized economic
regulations than the rest of the country. Free Economic
Zones were created specifically to attract investment,
particularly foreign direct investment (FDI), in
labor- intensive projects to increase exports.
Companies that locate their operations in these
designated areas of Zanzibar generally benefit from
simplified customs and other administrative
procedures.

As the custodian of the Free Economic Zones, Zanzibar

Investment Promotion Authority (ZIPA) readily offers
potential investors land, office space, and warehouse
space for lease in the zones. The Zanzibar Revolution-
ary Government is welcoming the private sector in
infrastructure development in the Free Economic
Zones through Public-Private Partnership (PPP)
arrangements. Zanzibar currently has five Free
Economic Zones:

Fumba Zone
Micheweni Free Economic Zone
Amaan Industrial Park
Maruhubi Free Port Zone
Airport Free Port Zone

17 Your Gateway to Invest in Zanzibar

Fumba Zone

In 1992, Fumba Zone was designated as an The declared zone encompass-

Export Processing Zone (EPZ). It is located on es approximately 3,000ha of
the southwest coast of Unguja Island, about 24 land, which is divided into
kilometers from Malindi seaport and 10 residential and light industrial
kilometers from Zanzibar's main airport, areas.
Abeid Amani Karume International Airport
(AAKIA).

19 Your Gateway to Invest in Zanzibar

Fumba zone is an excellent location for real estate development, customer-tailored
construction of industrial sheds or warehouses, and light engineering projects that
make the best use of locally available raw materials. The Fumba Master Plan is in
place, and the projects are expected to be developed in phases due to the size of the
area.

20 Your Gateway to Invest in Zanzibar

Micheweni Free Economic Zone

Micheweni Free Economic Zone, with an area of 808.8ha, is located

in the Northeastern tip of Pemba, approximately 75 kilometers
from the Mkoani seaport and 45 kilometers from Chake Chake
Airport. The zone provides uninhabited and ready land for a variety
of investments. Micheweni borders the sea and is ideal for fishing,
fish processing, and related products. The Micheweni Free
Economic Zone Master Plan is in place, and it divides the zone into
industrial (547.4ha) and residential (261.4ha) areas.

Amaan Industrial Park

The Amaan Industrial Park was designated as a zone in 1993. It is only 3
kilometers from Malindi's seaport and 2 kilometers from Amani Abeid
Karume International Airport. Amaan Industrial Park has been developed
and is now operational on a 12.5ha plot of land. This zone is home to the
manufacturing and processing industries. The existing infrastructure
consists of industrial sheds/warehouses, office spaces, all necessary
utilities such

Maruhubi Free Port Zone AirPort Zone

The Maruhubi Zone is about 5 kilometers The Airport Zone is the most recently
from Zanzibar's main port (Malindi declared zone, and it is intended to
Seaport, which handles about 99.8 serve air cargo. It is part of the cargo
percent of total imports) and has all village in the master plan for Abeid
basic facilities such as cargo handling Amani Karume International Airport.
equipment, 24-hour security, utility Investments in the site's develop-
services (electricity and water), and ment, as well as management of its
telecommunications services future operations, such as a logistics
park and other related activities are
The zone has so far attracted 24 projects encouraged.
mainly transit trade business. Maruhubi
Zone is ideal for goods to be
trans-shipped or warehoused to have
minimal administrative and operational
efficiency and security to meet the
market needs of today’s international
trade.

21 Your Gateway to Invest in Zanzibar

Free Economic Zones Investment Mixed-use Opportunities
Opportunities
Real estate development
Sports tourism
Infrastructure Development
Marina
Establishment of Industrial sheds Special cuisine restaurants
and other types of storage facilities Sports academy
such as chillers and warehouses. Ferry Port and Marine Transport between
Fumba and Dar es salaam.
Infrastructure development (Roads Sports arenas, amusement and recreation
network within the zone, Sewage and activities
drainage system, Power generation Establishment of ICT parks and smart
and distribution network, Clean villages
water, and ICT facilities). Establishment of exhibition and convention
centers
Commercial buildings
Industrial Sites
Shopping malls
Investment opportunities include
manufacturing, processing, assem-
bling, and packaging of various
commodities such as:
Food agro-processing industries for
milling, processing, packaging, and
canning
Garments
Cosmetics and fragrances
Building and construction material
industries
Pharmaceutical and medical equip-
ment supply industries
Consumer durable goods produc-
tion-component manufacturer and/or
assembling

Free Port Services

Transit trade and storage facilities

Export-oriented airport and seaport
based activities

22 Your Gateway to Invest in Zanzibar

6 INVESTMENT FACILITATION
AND AFTERCARE SERVICES
The procedure of Application of Passport copies, passport size photo-
Investment Certificate graphs, CV, and police clearance certifi-
cates from country of residence and
Stage 1 country of origin of all Directors and
shareholders
Explanation of Intention of Investment Certificate of Incorporation
Memorandum and Article of Association
Investors shall submit a concept note for Any other document to support the
the proposed project to be implemented in Application
Zanzibar using the Investment Intention Receipt of the payment of Application
Form, which is available for free at ZIPA Form.
offices or online at www.zipa.go.tz

Once the concept note is accepted, the NB:

investor will be notified and provided with
Business Plan/ Feasibility Study should
an Application Form for a non- refundable
clearly explain the name and detailed
fee of US$ 200, to be paid at Peoples Bank
information of the intended project, Action
of Zanzibar at Account number
plan of the project, market analysis, number
0400424000 (US$) or its equivalent in
of employees and their categories, ten-year
Tanzanian Shillings at Account number
income projection, Project Implementation
0404140000 (TZS); or otherwise advised.
Plan, and the same.
The processing time is three working days.

Minimum Capital Investment

Stage 2
Sectors Foreign Investment Domestic Investment
(USD) (USD)

Submission of the Application form Hotels & 2,500,000 300,000

Real Estate
A duly filled application form should be
Others 300,000 100,000
submitted to ZIPA,accompanied with copies
of the following documents.

Ten (10) copies of the Business Plan/-

feasibility study

Proof of availability of funds for invest-

ment including bank statements for
the last six months

23 Your Gateway to Invest in Zanzibar

Investment Certificate Fees

After Zanzibar Investment Promotion Authori-

ty (ZIPA) approves the investment proposal,
the investor receives an investment certifi-
cate. The investor will be required to purchase
an Investment Service License on an annual
basis, with the same fee paid upon approval,
until all approved capital has been invested.
Following that, for a fee of $500, the service
License will be provided. The fee structure is
classified based on the capital indicator. The
fee structure is categorized according to the
capital indicated in the table below:

Note:

The Investment Certificate is issued

within 7 working days upon completion of
the required documents or ZIPA will
advise the investor otherwise.
Upon receiving the investment certificate,
the investor will be required to renew the
Invest Service License annually, submit
the Quarterly Progress Report punctually.
Upon receiving the investment certificate,
the investor is required to commence the
implementation of the project within six
months.

Capital Investment Investment Certificate Fees

500,000 and below 600

500,001 - 2,000,000 1,000

2,000,001- 4,000,000 1,200

4,000,001 and above 1,500

Free Economics Zones projects 1,000

Strategic Investments 2,500

24 Your Gateway to Invest in Zanzibar

Land Acquisition

The land law facilitates easy access to land As the custodian of Free Zones, the Authority
for prospective investors. The Land Tenure readily offers lease plots to prospective
Act 1992 provides that all land within the investors. Table 1 shows the indicative land
islands of Zanzibar occupied or unoccupied is rates.
public land and shall be administered by the
Minister responsible for land affairs on behalf Table: Indicative Land Rates at Free Econom-
of the President. The land within the Free ic Zones in USD/Sqm
Economic Zones is administered by ZIPA.

Micheweni
The Act further provides the opportunity for Item Amaan Fumba Maruhubi Maruhubi Airport

the land to be leased to any person, Zanzibari Land Lease

or non-Zanzibari, intending to use that land Areas less

than 1 ha
5.0 0.5 1.5 5.0 2.0

for investment purposes subject to the

1-5 ha - 1.5 1.5 - 1.5
approval of an investment project by ZIPA or
other relevant authorities. The lease period Above 5 ha - 1.0 0.75 - 1.0

goes up to 99 years. Container

Space 35 - - 35 -

Premises
The property on this land, after being devel-
Office Rent 60 - - 60 -
oped in accordance with ZIPA approved
investment plan may be sold, assigned, Shed Rent - - - - -

sub-leased or subdivided, inherited, or mort- Fabricated 16 - - - 16

gaged. Non-
Fabricated 20 - - 20 20

Table: Indicative Land Rates Outside Free

Economic Zones Land rates to be followed on any changes

Sector Location Foreigner (USD/ha) Citizen (USD/ha)

Urban 7,000 3,500

Hotel
Rural 5,000 2,000

Urban 3,500 300

Industrial
Rural 1,500 200

Urban 500 100

Agriculture
Rural 300 50

Urban 2,500 2,000

Services
Rural 1,500 1,000

25 Your Gateway to Invest in Zanzibar

Issuance of Building Permit Work and Residence Permits

A building permit is issued by the The issuance of Work and Residence Permits is
Development Control Unit (DCU) governed by the Employment Act No.11 of 2005
through ZIPA for a non-refundable fee and the Immigration Act No.7 Cap 54. The Zanzibar
of US$ 1000 or its equivalent in Investment Promotion and Protection Act No.14 of
Tanzania shillings, payable to 2018 provides an opportunity for the approved
Peoples’ Bank of Zanzibar in the projects to employ expatriates in key positions
names of Development Control Unit, that are determined by ZIPA.
Account No. 0404116000. Approved
investor shall apply to ZIPA for a The number of foreign employees allowed is
building permit and submit with based on the type of investment and capital
application the following: investment injected as categorized in the Table

A duly filled building permit Work Permits Fees Structure

Technical Form issued by DCU
10 sets of project drawings which Work permits are issued by the Labour Commis-
include: architectural drawings, sion through ZIPA and are annually renewable.
topographic maps, general site The current fees structure for work permits (in
layout plan, section and elevation US$) is shown in the table below:
of all structures, architectural
details, engineering/structural Strategic
investors &
Other Expatriates
drawings, and optional drawing. Category investors
with more investors (USD)
Permit
Duration
than 20% (USD)
BOQ (5 copies); shares
Land lease agreement (2 copies);
First Free 300 300 One Year
EIA (2 copies); Application

Evidence of payment of building

permit fee. Renewal Free 150 150 One Year
Information and full address of
registered contractors
Temporary
Investment certificate (not renew Free Free 200 Less than
able) Six Months
Passport size pictures of all share-
holders Source: Labor Commission – Zanzibar, 2020
Any other document to support the
application

Through ZIPA DCU shall consider

the application and issue a Building
Permit or advise the applicant
otherwise, within 7 working days from
the date of submission.

26 Your Gateway to Invest in Zanzibar

Residence permits are issued by the iii. All applications should be accompanied
Immigration Department through ZIPA. The by all required documents. Incomplete
current fees structure for residence applications shall not be received
permits (in US$) is shown in Table 5.7.
iv. Full submission of documents does not
Residence Permits Fee Structure guarantee the issuance of permits. The
competent authorities reserve the right to
Category Type New &
Replacement
For East
African
Duration approve disapprove any application
(USD) Community
(USD)

Investor Class A 3050 1500 2 Years

v. All academic and professional certificates
must be certified by competent authorities
Expatriates Class B 2050 500 2 Years
such as the university, and the High Court.
Researcher Class C 500 250 2 Years

Dependent 500 2 Years

vi. Evidence of original Police Clearance
250
shall be required during the submission of
Business 200
Pass 200
the application for which investors should
Business Three Months
bring with them during the submission of
250 Free
Visa (not extendable)
the application.
Source: Department of Immigration Services – Zanzibar, 2020
vii. Permit renewal must be done timely to
avoid penalty. Any delay in submitted
Note: Rates are subject to change without
application to ZIPA for renewal of permits
prior consultation with investors for both
shall attract a penalty of United States
work and residence permit
Dollars ten (US$10) payable to ZIPA for each
delayed day for both investors as well as
IMPORTANT INFORMATION ON PERMIT expatriates.
APPLICATION
viii. Investors shall bring with them a
i. All permit applications should be submit- passport of the applicant for any permit
ted to ZIPA office at Maruhubi on working cancellation application. Failure to submit
days from 0800hrs to 1400hrs the passport, the investor shall be liable to
a penalty of US$ 300, payable to ZIPA
ii. All documents should be submitted in
English or the Swahili language. The State ix. The issuance of Work and Residence
University of Zanzibar (SUZA) and investors' permits shall not exceed one working day
respective embassies may be used for from the date of submission. Investors are
documents translating (if necessary) advised to make their payments on time to
avoid unnecessary delays.

27 Your Gateway to Invest in Zanzibar

x. All payments should be deposited to v. Three (3) copies of the Company Memoran-
PBZ Bank at account number dum and Articles of Association
0400485001 (USD), 0400485000 (TZS) for
a Work permit, and account number vi. Three (3) copies of the certificate of
0400257000 (USD) for a Residence incorporation/compliance
permit.
vii. Three (3) copies of board resolution
xi. All approved permits/passports shall certified by Registrar of Companies (if
be collected from ZIPA on working days applicable)
from 1300hrs to1500hrs.
viii. Two (2) copies of the business license
xii. The wage of every employee shall be /investment certificate
payable in legal tender directly deposited
to each employee’s local bank account ix. Evidence of business premises (if applica-
and any agreement to the contrary shall ble)
be null and void.
x. Three (3) copies of the TIN certificate
xiii. It is an offense for any foreigner to
work without a valid work permit. It is xi. Immigration forms (TIF1, TIF 12, and
also an offense for any employer to datasheet original and its copies)
employ or permit any foreigner without a
valid work permit to work in his or her
For Expatriates
establishment.

i. Three (3) certified copies of academic and

NEW APPLICATION OF WORK AND
professional certificates
RESIDENCE PERMIT ii. Three (3) sets of Curriculum Vita Three (3)
passport copies
For each post to be filed by non-citizens,
iii. Nine (9) passport size photographs
the investor shall apply in writing to ZIPA
iv. Three (3) certified copies of the Police
for a work and residence permit, prior to
Clearance Certificate from the country of
the arrival of the applicant in Zanzibar and
origin and residence.
submit together with the application the
v. Three (3) original sets (and 2 copies) of the
following documents:
Employment Contract which is in line with
section 57 of Zanzibar Employment Act no.
For Shareholders; 11 of 2005

i. Three (3) copies of the passport vi. Three (3) sets of the Job description
ii. Three (3) sets of curriculum vitae (CV) vii.Permit from appropriate Body/ Ministry
iii. Nine (9) passport size photographs (e.g. Medical Doctors Board for doctors etc.)
iv. Three (3) certified copies of the Police
Clearance Certificate from the country of
origin and residence.

28 Your Gateway to Invest in Zanzibar

viii. Medical report certifying the fitness of the For Shareholder
applicant for the post being applied for.
i. Original expiring work permit and its
ix. Evidence of unavailability of local personnel copy
for the post
ii. Three (3) passport size photographs
x. Special Pass / Business Visa /Temporary Work
Permit (if applicable) iii. Receipt of payment of outstanding
dues from ZIPA (if applicable)
xi. Immigration forms (TIF 1, TIF 12and Data
sheet – original and its copies) iv. Income Tax Clearance Certificate
issued by Tanzania Revenue Authority.

For Dependent
For Expatriates
i. Two (2) copies of the Passport of dependent
i. Original expiring work permit and its
ii. Four (4) passport size photographs of the copy
dependent
ii. Two copies of passports
iii. Two (2) copies of work and residence permits
of a sponsor iii. Three (3) passport size photographs

iv. Two (2) copies of evidence of relationship to iv. Two (2) sets of updated curriculum
sponsor (eg. marriage certificate for spouse) vitae (CV)

iv. Immigration forms (TIF2 and TIF 12-original v. Two (2) copies of the existing contract
and its copy of employment or three (3) sets of the
original contract of employment plus its
copy (for a new contract)
Renewal of Work Permits
vi. Income Tax Clearance Certificate
A work permit is valid for one year and can be issued by Tanzania Revenue Authority.
renewed. Where a work permit is about to expire
and the applicant is eligible for renewal, the vii. Permit from the appropriate body
investor shall apply to ZIPA for the renewal, (e.g. Medical Doctors Board for doctors
before the expiry date of the permit. etc.) if applicable

The application shall be made in writing and viii. Receipt of payment of outstanding
accompanied by the following documents: dues from ZIPA (if applicable)

ix. Medical Report certifying fitness of

the applicant for the post being applied.

29 Your Gateway to Invest in Zanzibar

Replacement of Residence Permit For Dependents

Where a residence permit is about to

Where a dependent pass is about to expire,
expire, and the same is eligible for replace-
the investor shall apply for the renewal of
ment. The investor shall apply to ZIPA for
the same at least 14 days before the expiry
its replacement. The application shall be
date. The application shall be made in
made in writing and accompanied by the
writing to ZIPA and accompanied by the
following documents: -
following documents:
For Shareholders
i. Original passport and it's two (2) copies
i. Original passport and two (2) copies ii. Expiring dependent pass and its copy
ii. Original expiring permit and a copy iii. Two (2) copies of the work permit of a
iii. Seven (7) passport size photographs sponsor
iv. Two (2) copies of the Tax Clearance iv. Two (2) copies of the residence permit of
Certificate a sponsor
v. Two (2) copies of the work permit v. Four (4) passport size photographs
vi. Special pass (if applicable) vi.Two (2) copies of evidence of the
vii. Financial statement relationship (e.g.marriage certificate for
viii. Immigration forms (TIF 1, TIF 12, and spouse)
datasheet) vii.Immigration forms (TIF 2 and TIF 12)

For Expatriates
CANCELLATION OF WORK AND
i. Passport and it's two (2) copies RESIDENCE PERMITS

ii. Original expiring residence permit and its For Investors

copy
Where the investor decides to cancel the
iii. Two (2) copies of the work permit work and residence permits, he/she shall
iv. Seven (7) passport size photographs apply in writing to ZIPA and submit the
following documents:
v. Two signed copies of the attested
employment contract i. Passport and its copy
ii. Work and residence permits and their
vi. Income Tax Clearance Form issued by copies
Tanzania Revenue Authority iii. Dependent’s pass (if any)
iv. Tax Clearance Certificates
vii. Permit from the appropriate body (e.g. v. Recent audited final accounts
Medical Doctors Board for doctors etc.) if vi. Winding up a certificate from the Regis-
applicable trar of Companies (if applicable)
vii. Business closure certificate from the
viii.Special pass (if applicable) Registrar of Companies (if applicable

Immigration forms (TIF 1, TIF 12, and

datasheet

30 Your Gateway to Invest in Zanzibar

 Sell Shares or Property
For Expatriates
Investors shall inform ZIPA whenever there
Where a contract between an is a change of ownership or intend to sell his
expatriate and employer is about to business property to any individual or
end/ be terminated, and it is not company. The investor shall submit to ZIPA
eligible for renewal, the investor the following documents:
shall apply to ZIPA for the cancella-
tion of both work and residence i. Company Board resolution approved by
permits at least 7 days before Registrar of Companies which indicate the
departure. The application shall be changes made.
made in writing and accompanied by
the following: - ii. CV, Police Clearance, passport copies, and
photos of the new directors/shareholders or
i. Expatriate’s passport new property owner(s)
ii. Work permit and its copy
iii. Income Tax Clearance Certificate iii. Memorandum and Articles of Association
iv. Residence permit and its copy of a company and details of the new share-
v. Dependent pass (if any) holders or business property buyer (if a
vi. Receipt of payment of outstanding company being a new shareholder or
dues from ZIPA (if applicable) Property buyer).
vii. Return ticket of the applicant
iv. Pay service charges to ZIPA

Temporary Work Permit

This permit is issued for temporary Note

assignment for less than six (6)
1. Investors shall pay to ZIPA 1.5% of the
months. The application shall be
share transfer on approved capital invest-
made in writing to ZIPA and accom-
ment as indicated in the feasibility study, as
panied by the following documents: -
service charges.

i. Two (2) copies of passport

2. Not with standing number 1 (above), an
investor shall pay to ZIPA 1.5% of share
ii. Three (3) passport size photo-
transferred on actual investment capital if
graphs
the capital investment exceeds the approved
capital indicated in the feasibility study, as
iii. Two (2) sets of curriculum vitae
service charges.

iv. Two original contracts of the

assignment and its copy

v. Business visa or business pass

31 Your Gateway to Invest in Zanzibar

MANAGEMENT COMPANY/RENTING
THE BUSINESS

The investor shall inform ZIPA whenever

he decides to rent/ lease or engage the
Management Company to run the
business. The investor shall submit to
ZIPA the following documents:

i. The contract between the investor and

lessee/ management company

ii. A letter of guarantee that approves the

company's asset shall be used as securi-
ty for any transaction to be made
between the company and a third party
such as supplier, employees, and the like.

iii. Details of lessee which include a CV,

police clearance, passport copies, and
passport photograph

iv. For a company as lessee-Memoran-

dum and Articles of Association

v. The management company shall pay a

required fee annually until the end of the
contract.

vi. Receipt of the payment done

32 Your Gateway to Invest in Zanzibar

7 INVESTMENT INCENTIVES
The Zanzibar Investment Promotion and For Buyer who has purchased property of
Protection Act No.14 of 2018 offer the value not less than USD 100 thousands
lucrative packages of incentives. These in Real estate development may be
include fiscal and non-fiscal incentives for granted the following benefits, incentives
investments under Free Economic Zones, and allowances:-
strategic investments, and investments
outside the Free Economic Zones. For • Residents permits for his husband/wife/
details please visit www.zipa.go.tz and four children who are under twenty
years.
General Investment Incentives:-
• 50% exemption on stamp duty in real
• 100% foreign ownership. estate buyer’s contract.
• Exemption from payment of import duty,
excise duty Value Added Tax and other • 50% exemption on capital gain on
similar taxes on capital goods. purchased properties.
• 33 years of land lease agreement (up to
99 years). • 100% foreign ownership is allowed.
• Employment of expatriates in Key
positions. • 100% exemption from worldwide
• 100% allowance Research and Develop- incomes for foreigner.
ment.
Investment Incentives for Free Economic
Strategic Investments Zones (FEZ)

According to the Zanzibar Investment The developer of a FEZ shall benefit to the
Promotion and Protection Authority Act following incentives:-
no. 14, 2018, An Approved Investor may be
granted a Strategic Investment Status • Exemption from payment of corporate
after he has:- tax for an initial period of ten years.

• Investing assets equivalent to at least • Exemption from payment of withholding

USD 100 Million in Unguja and USD 10 tax on rent, dividends and interest for the
million for Pemba; or first ten years.
• Employing at least 1000 people; or
• Investing assets equivalent to USD 50 • Exemption from payment of property tax
Million in the innovative investment or in for the first ten years.
the disadvantageous regions.

33 Your Gateway to Invest in Zanzibar

Procedures for import duties and Procedures for Corporate
similar taxes exemption Tax exemption

Investor shall submit to ZIPA approved Approved Investors may apply for
drawings, Bill of Quantity, and a list of all Corporate Tax exemption after
capital goods to be imported as well as to be fulfilling the following conditions:
purchased locally for consideration and
where appropriate granted exemption. The • Invest not less than 75% of the
list should be submitted in both hard and soft capital specified in the Business
copy. plan/feasibility study;

For each consignment of approved materials, • Start business operation

an investor may apply for exemption in
writing to ZIPA at least 2 weeks before the The application for corporate Tax
arrival of goods in Zanzibar and submit exemption must be accompanied
together with the application two sets of the with:
following documents:
• Audited final accounts
• Bill of lading/airway bill/ consignment
notes/ local sale advice • Progress report of the project
• Customs single bill of entry
• Invoices • Tax clearance certificate
• Packaging list.
• Valid business license

Procedures for exemption from VAT

on local purchase

For every material to be purchased locally,

Note
the investor may apply for Value Added Tax
(VAT) relief to ZIPA and submit two sets of the Application for Corporate Tax
following: exemption shall be made in the first
year of business operation.
• A duly filled Value Added Tax form issued by
Zanzibar Revenue Board

• Two copies of the proforma invoice

Note: For all goods exempted, invesors shall

pay 5% of the total amount of exempted
duties to ZIPA as a service charge except for
investors who have strategic investment
status.

34 Your Gateway to Invest in Zanzibar

8 ABOUT ZIPA
Zanzibar Investment Promotion Authority (ZIPA)

ZIPA is government organ responsible for promotion and

facilitation of investment in Zanzibar. It also manages and
administers Free Economic Zones.

Vision

To make Zanzibar an attractive and competitive investment

destination, regionally and globally

Mission

To be an efficient focal point for dynamic trade and investment promo-

tion/facilitation by providing quality services through motivated profes-
sionals aimed at greater contribution to Zanzibar's economic growth
and social well-being

Core Values

• We Are a Team
• We Are United
• We Are One
• Investors Are Our Partners
• We Work For the Common Good

ZIPA has long term cooperation with international institutions that are working together in
supporting investments. Organizations like UNIDO, UNDP, MIGA, WAIPA, UNCTAD and EABC
have for years worked with ZIPA to improve the investment climate.

35 Your Gateway to Invest in Zanzibar

Core Functions One Stop Centre Services

• Undertaking Promotional Activities One Stop Centre services The following

services shall be provided at ZIPA offices
• Establishing, administering and simplified under One Stop Center from July 2018:
procedures of approving investment projects
• Registration of companies
• Facilitating foreign and local investments • Tax Payer Identification Number
• Promoting working relationship with • Project Approval
international organisations • Acquisition of Land
• Stimulating and supporting the growth of • Environmental Issues
Entrepreneurship and SMEs • Building Permits
• Promoting working relationship with • Investment Incentives
international organisations • Work and Residence Permits
• Opening of Foreign and Local Accounts
• Assisting investors in solving regulatory • Quality and Standards
problems • Business Permits and Licenses

• Identifying new markets or opportunities

for the expansion of businesses One Stop
Centre services

• Assisting in acquiring land for investments

The following services shall be provided at
ZIPA offices

• Facilitating the speedy acquisition of all

due under One Stop Center from July 2018:
incentives, necessary authorization and
decisions required by investors including
work and resident permits, land leases and
other infrastructure services.

• Playing advisory role to the Government in

all investment matters

• Overseeing the formation and effective

functioning of Zanzibar National Business
Council

• Stimulating and supporting the growth of

Entrepreneurship and SMEs

36 Your Gateway to Invest in Zanzibar

All correspondences should be addressed to:

EXECUTIVE DIRECTOR
P.O.BOX 2286- ZANZIBAR

+255 24 2237353
[email protected]
www.zipa.go.tz