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Why Zanzibar should be your next investment location

Zanzibar is fast becoming one of the world’s hottest investment locations. Its popularity as a travel destination continues to grow, it remains to be a key trading hub and there are now several impressive developments for investors seeking to catch a market that is ripe for investment.

About Zanzibar

Located just off the coast of East Africa in the Indian Ocean, Zanzibar is a semi-autonomous region of Tanzania and consists of several small islands and two large ones: Unguja and Pemba Island. Unguja is the main island and is usually informally the one referred to as Zanzibar.

Known for its beautiful white sandy beaches, spectacular sunsets, stunning landscapes and tranquil forests. Tourists flock to Zanzibar for the snorkelling and diving, exploring the coral reefs, seeing tropical fish, giant turtles and dolphins in their natural habitat.

On land, the exotic markets are ready to be explored and there are many historic buildings including those at Stone Town, which is the UNESCO World Heritage old town of Zanzibar City and the birthplace of the rock band Queen’s frontman, Freddie Mercury. Often referred to as ‘spice island’ Zanzibar’s main exports include cloves, cinnamon, nutmeg and black pepper.

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.


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.

As many of the world’s tourist destinations have been overdeveloped there is a real appetite for finding locations that offer a perfect balance of amenities, modern comforts and luxury whilst enjoying an unspoilt destination which is beautiful and ready to be explored.

Zanzibar is one of these locations, it is on the cusp of being ‘discovered’ but currently remains largely untouched.

Potential for growth

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 by global real estate company Knight Frank, 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.

Offshore Property Investment

Zanzibar only opened its doors to non-Tanzanian resident investors in early 2018 and those investing n Zanzibar will be protected by law and international conventions. Developments recognised by the country as strategic investment projects allow property owners to gain significant tax benefits such as not having to pay capital gains tax, stamp duty or inheritance tax.

Additionally, property investors, together with their spouses and any children under the age of 25 can be eligible for residence permits lasting the duration of their ownership of a property.

Why Zanzibar?

With tourism figures rising and supported by the stability of the Tanzanian economy, Zanzibar has strong potential for investors.

Investing in overseas property can be daunting, as we carefully vet all our investment prospects before proposing them to our clients you can rest assured you’re making intelligent investment decisions.There are stunning luxury real estate developments in the pipeline that have excellent credentials and are being constructed by companies with an established track record.

To talk to us about the current opportunity for investment in Zanzibar please do contact us without obligation.

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