By Alfred Zacharia
Zanzibar is positioning itself as a prime destination for both local and international investors by identifying six key sectors with high growth potential.
They include the blue economy, tourism, real estate, manufacturing, agriculture, and public-private partnerships (PPPs).
Speaking during the 49th Dar es Salaam International Trade Fair (DITF), Zanzibar’s Deputy Minister for Community Development, Gender, Women and Special Groups, Mwanaidi Ali Khamis, opened the “Zanzibar Business Day” with a clear message: Zanzibar is ready for business and eager to attract responsible investment.
The event, held under the theme “Zanzibar: A Land of Investment Opportunities,” aimed to showcase the archipelago’s long-term development vision and sectoral priorities.
A strong focus was placed on the blue economy. Officials outlined five strategic areas for investment within this sector: fisheries and aquatic farming, marine tourism, oil and gas exploration, marine transport, and marine spatial planning.
A representative from the Ministry of Blue Economy and Fisheries said Zanzibar’s geography—surrounded by water, limits large-scale agriculture, but offers vast potential in ocean-based industries.
“We’ve already provided fishing ponds and boats to local fishers using funds from the Uviko-19 support programme, and those who received the support are now running their operations effectively,” said the official.
However, a single boat costs between TZS 15 million and TZS 20 million, which is out of reach for most people.
"That’s why we need investors," he said.
Tourism remains the backbone of Zanzibar’s economy, contributing about 30 percent of GDP.
Officials now want to enhance tourism offerings to encourage visitors to stay longer and increase their spending.
A representative from the Zanzibar Commission for Tourism said five priority areas had been identified: heritage tourism, marine sports, conference tourism, sports tourism, especially as the Africa Cup of Nations approaches and eco-tourism.
“We have more than 87 heritage sites, but many require restoration to fully realise their potential,” she said. “Currently, tourists stay for around 7 to 8 days. Our goal is to improve tourism facilities and services so they stay longer and spend more.”
Housing and urban development were also raised as priority sectors.
According to Khamis Dunia from the Zanzibar Investment Promotion Authority (ZIPA), only around 20 percent of Zanzibaris can currently afford homes in the formal real estate market.
“There’s a real need for affordable housing, and we are calling on investors to help bridge this gap,” he said.
Beyond housing, Dunia also pointed to investment opportunities in processing industries and agriculture.
To support its investment agenda, the government of Zanzibar is offering a range of incentives.
They include import duty exemptions of up to 100 percent, corporate tax holidays for the first five years, land rent exemptions, and full ownership rights for foreign investors.
“Our government is flexible and open to negotiation whenever investors face challenges,” Dunia said.
The minimum capital requirement is $2.5 million for foreign investors and $100,000 for local investors.
Dunia also emphasized that investment opportunities are not reserved for foreigners. “We encourage Tanzanians to invest and take part in building the future of Zanzibar,” he added.
This year’s DITF, hosted by the Tanzania Trade Development Authority (TanTrade), brought together over 500 exhibitors from 23 countries, reflecting growing international interest in East Africa as a trade and investment hub.
Zanzibar’s strong presence at the fair is part of its broader plan to diversify its economy and reduce dependence on traditional sectors.
The efforts are aligned with Vision 2050, the island’s long-term development strategy aimed at creating a sustainable and inclusive economy.
With the right mix of incentives, investor-friendly policies, and natural economic advantages, Zanzibar is positioning itself as a serious contender for investment in the region.