Zanzibar's small islands up for grabs in renewed investment drive

The Revolutionary Government of Zanzibar is marketing nine of its islets to prospective investors, specifically targeting net-worth individuals.

Zanzibar has over 50 islets, some of which have already secured investments while several others are still uninvested-in.

The director for investment research, planning and development in the Zanzibar Investment Promotion Agency (Zipa), Mr Emmanuel Mashimba, told The Citizen yesterday that the investors being targeted in line with the Isles' plans are those who can invest huge sums of money.

"Unlike in the past, we are targeting net-worth individuals who can invest huge amounts of money in projects that would yield quick economic gains for the country," he said.

The islets that have been put up for grabs by prospective investors include Changuu (Prison Island), Bawe, Pamunda-A, Pamunda-B, Kwale and Chumbe in Unguja.

The list also includes Matumbini, Njao and Misali, which are located in Pemba.

Zipa said in a recent media advert that the decision to put the islets up for investments was based on the need for diversification to attract investors - stressing that the small islands are assets that can be developed for the general good of investors and Zanzibaris alike.

In their expressions of interest, investors are required to provide information regarding their experience and ability to develop projects.

They are also expected to demonstrate their ability to operate and manage investment projects; their financial capacity, skills and ability in conserving the environment, biodiversity, cultural heritage and community development.

"Interested Investors should also specify the intended small island/islands for investment, and provide detailed information on the kind of high-end investment planned.

"Interested investors should deposit a non-refundable fee of $1,500 in Zipa's bank account and submit details to the Zipa head office," the report says.

According to Mr Mashimba, the investments being sought should be similar to those found in places like Singapore and the Maldives.

"If an investment is in a resort or hotel, we are looking for an investor in a project that would attract an individual who would be willing to spend up to $1,000 or more per day," he said.

The move is in line with President Hussein Mwinyi's pledge to attract local and foreign investors who can work with the government in developing the Isles' blue economic model.

In line with the law, investors will benefit from the Isles' incentives. These include - but are not limited to - exemption from all duties and taxes on importation and local purchases of construction and other materials for the approved project.

The investor would also be exempted from the payment of income tax on interest on capital borrowed from foreign banks, and be given a five-year grace period for the payment of Land Lease.

In terms of corporate tax, an investor may qualify for Zipa's incentive of a 50 percent exemption of the prevailing rate for Corporate Income Tax.

This article was originally published by The Citizen. [Photo: FILE]