Welcome to Zanzibar!!!
By Sudi Am mba
06.03.2023
Zanzibar is a beautiful archipelago located in the Indian Ocean off the coast of Tanzania. The Island is known for its beaches, crystal-clear waters, rich cultural, historical heritage and natural attractions.
All this make it a popular destination for tourists, expatriates, and retirees seeking a high quality of life.
The tourism industry in Zanzibar provides employment for around 27% of the population, making it a crucial sector for the local economy.
According to the Zanzibar Tourism Commission, in 2019, the archipelago welcomed over 538,000 tourists, which was a 9.8% increase compared to the previous year.
The top five countries of origin for visitors to Zanzibar in 2019 were Italy, Germany, the United Kingdom, France, and Russia.
The average length of stay for tourists in Zanzibar in 2019 was 8.1 nights.
Most of tourists visit Zanzibar for leisure and relaxation, with activities such as beach vacations, cultural tours, and water sports being popular.
Zanzibar offers several opportunities for businesses looking to invest in the region. Here are a few examples:
* Tourism: this sector offers opportunities for investment in hotels, resorts, restaurants, other tourism-related services.
* Real estate: as a highly desirable location, Zanzibar offers opportunities to invest in a growing real estate market which can yield high returns.
This market is still in its early stages of development, there is a high potential for growth. As the island’s tourism industry continues to expand, demand for quality housing will increase, making real estate an attractive investment opportunity.
* Agriculture: Zanzibar has a fertile soil and a tropical climate that is suitable for a wide range of crops, including spices, fruits, vegetables, and cashew nuts.The agricultural sector in Zanzibar offers opportunities for investment in production, processing, and export of these products.
* Fisheries: Zanzibar is surrounded by the Indian Ocean, which offers a rich source of marine resources, including fish and seafood.
The fisheries sector in Zanzibar offers opportunities for in fish processing, cold storage, and export of fresh and processed fish and seafood products.
* Renewable energy: Zanzibar has significant potential for renewable energy, in the form of solar and wind power. The development of renewable energy infrastructure in Zanzibar offers opportunities for investment in the generation, distribution, and sale of renewable energy.
* Handicrafts: Zanzibar has a rich cultural heritage and a tradition of producing handicrafts such as textiles, baskets, and pottery. The handicraft sector in Zanzibar offers opportunities for investment in production, marketing, and export of these products.
In terms of trade opportunities, Zanzibar is known as the “Spice Island” due to its long history as a major producer of spices such as cloves, nutmeg, and cinnamon. These spices are in high demand around the world and are used in a variety of culinary and medicinal applications.
*Seafood: offers opportunities for the export of fresh and processed fish and seafood products. Zanzibar is a rich source of marine resources such as fish and seafood.
* Black pepper is one of the many products that Zanzibar can offer to the world in terms of trade.
* Sea cucumber: marine animals that are in high demand in the Asian market, particularly in China, where they are considered a delicacy and are used in traditional medicine.
Why Zanzibar is an attractive destination?
* Favorable investment climate: The Tanzanian government has implemented a range of policies aimed at promoting foreign investment in Zanzibar.
These are tax incentives, relaxed foreign ownership laws, reduced bureaucratic procedures…
* Diversification: Investing in Zanzibar can provide diversification for investors looking to spread their portfolio across different markets and asset classes.
* Affordability: Compared to other popular tourist destinations, such as the Maldives or Seychelles, the cost of real estate in Zanzibar for instance is relatively affordable, making it accessible to a broader range of investors.
The Zanzibar Investment Promotion Authority (ZIPA) can provide further information and assistance to businesses interested in investing in Zanzibar.