Zanzibar

Zanzibar is one of the most beautiful islands I’ve been to. It has it all. The most beautiful beaches in the world. It’s a lifetime destination for many tourists, and the island has been designed to be this way.

I’ve been to Zanzibar four times. It’s a 20-minute flight or a 90-minute boat ride from Dar es Salaam, and, considering my family is from Dar es Salaam, I take the opportunity to visit the island whenever I can.

My first trip was in August 2020, in the middle of the pandemic. The island was empty, with just a few tourists around. “Stranded” might be too strong a word, but many of the people we met didn’t seem in a hurry to leave. I couldn’t wait to return, and I did so again in December 2022 for New Year’s Eve. That time, it felt like the entire world had the same idea. The island was packed. We barely managed to get the last room in our hotel. It wasn’t a great holiday, but I blamed it on the timing.

I went back again this summer, a bit more experienced, with a different view of Africa. As someone who helps the diaspora invest back home, for the first time, I started noticing something different. Zanzibar seems very curated for Westerners. The food, the music, the languages. Many of the hotel workers spoke Spanish and Italian, and it was hard to see people like me lying on the beach. As a lover of African food, I noticed that most menus featured only a handful of African dishes, while the rest leaned heavily toward Western cuisine.

Then I started asking questions. It turns out many of the hotels are owned by foreigners. Boutique hotels and large chains alike. And it makes sense: hotel owners tend to market to their home countries. Italians market in Italy, Spaniards to Spain, and so on.

On my fourth trip last month, I went with an investor, a trip that gave me a balanced perspective. We bumped into a Dutch-Nigerian couple walking their dogs on the beach after a quick lunch at the Rock restaurant. We ended up staying at their hotel for two nights. Their place had a Nigerian restaurant, probably the only one on the island. We ate jollof, akara, efo, and pounded yams! Over those two days, I met a lot of West Africans who came there just for lunch. I was low-key excited to see more people who looked like me on holiday, finally (This technically wasn’t a holiday trip, but you get the vibe!)

The point of my article is simple: we don’t have enough Africans investing in Africa. That’s part of why we don’t see enough people like me on these beaches, exploring and enjoying the island. The good news is Zanzibar is open for business.

The Zanzibar Investment Promotion Authority (ZIPA) has been very proactive in attracting new investors. Through ZIPA, property developers and investors can access a range of incentives, including tax holidays of up to 10 years and exemptions on import duties for building materials and equipment. Some projects are even eligible for residency permits tied to investment (investments above $100,000). Combine that with the government’s heavy investment in infrastructure, roads, utilities, and ports, and the island becomes even more attractive.

Tourism is booming again, making up close to 30% of the island’s GDP, and the real estate sector is one of the fastest-growing. ZIPA authorities have confirmed that real estate is now the second largest contributor to GDP after tourism. As the island is relatively small, land and prime locations will only become scarcer over time, pushing values higher.

I’m encouraging Africans and those in the Diaspora to consider Zanzibar as a potential investment destination seriously. Beyond the beauty, the returns look very attractive, and the policy environment is welcoming.

My dear Africans, if we don’t invest in Zanzibar, we will continue to eat pasta, hear everyone speak Italian, and wonder whether we are in Italy or Africa. No shade to the Italians, but I hope I’ve made my point.

For your next trip to Zanzibar, please consider staying at the View of Zanzibar. It’s a small boutique hotel, opposite the Rock restaurant in Paje. They serve the most delicious Nigerian food, and their rooms are really lovely.

If you are interested in investing in Zanzibar, please drop me an email at [email protected], and I will help you get started.

My name is Joe Kinvi, and I’m building Borderless, the infrastructure that enables the Africa Diaspora to invest at home easily. We are now live with a couple of investment collectives on our platform, and you can view them here.