The government of Zanzibar has leased nine of its 52 smaller islands for holistic development projects that attract more than Sh600billion capital investment, the Zanzibar Investment Promotion Authority (ZIPA) said in a press statement.

The ZIPA Executive Director Shariff Ali Shariff, added the lease was intended to open up more investment opportunities in the Indian Ocean islands of Zanzibar.

In July this year, the government launched the Strategic Investment Project (SIP), which offers foreign investors a host of residential and investment benefits including a residency permit that authorises real estate buyers, along with their partners and a maximum of four children under the age of 20, to live on the islands after purchasing a property.

In addition, there is a 50% exemption on capital gain on purchased properties, 100% foreign ownership, 100% exemption from worldwide income for foreigners and no minimum stay being required.

“The small islands surrounding Zanzibar are major assets that have enormous potential for both investors and the island’s residents,” Shariff said in the statement.

The smaller islands that have been leased are Bawe, Changuu, Chapwani, Chumbe, Kwale, Pamunda A, Pamunda B, Misali and Pungume. Each of the islands possesses its own unique characteristics, thereby offering diverse selling points and opportunities for potential investor.

Changuu
The 11.27ha islet is located about 5.6km off the Stone Town, and is surrounded by shallow coral reefs. It boasts a mix of indigenous and introduced vegetation, giant tortoises, 110m of idyllic beach and a natural tidal pool.

Bawe Island

Located just south of Changuu, the 35ha islet is known for its spectacular sunrises and sunsets. About seventy percent of the islet is conserved as forest while the remaining 30% is used for tourism purposes by local fishermen.

The island is known for its colourful coral reefs and excellent snorkeling and pristine 550m beach. It could also soon be declared part of the Zanzibar Town Islands Marine Conservation Area.

Chumbe Island

Lying south-west of Unguja Island at the edge of the Menai Bay, Chumbe is praised for its rich marine biodiversity.

It comprises 17ha of conserved forest, 55ha of coral reef sanctuary on the west part of islet, and 2.44ha which have been allocated for the development of eco-tourism operations. Both protected areas were formally registered by the IUCN World Conservation Monitoring Centre in 1995.

Kwale Island

This 50ha islet in Menai Bay lies about 4km off the western coast of Unguja. Some 390m of white sandy beach is complemented by a natural lagoon, and coral rag bush. It is paradise incarnate and is used as the major fish camping site for local fishermen from Unguja.

Misali Island

The 9,000ha islet is relatively undisturbed compared to other parts of Zanzibar and Tanzania, and as such possesses incredible terrestrial and marine life, and is an important nesting site for turtles. Diving, snorkeling, swimming, boating and scientific research are permitted.

Pamunda A & B

Located in the west of the archipelago, the islets possess white beaches, a natural lagoon, and coral rag bush. They are used as the major fishing camping site for local fishermen from Unguja and are famous tourist attractions.
 

Chapwani
The 5ha Island is situated northwest of Stone Town and can be reached by boat in just 15 minutes. Chapwani has an untouched beach and a spectacular reef filled with starfish and multi-coloured corals.

According to Shariff, 53 local and foreign companies submitted bids for the ten initial islets, but only nine were successful.

Some of the considerations were the capacity to invest in high-end projects, capital level, environmental concerns and the lease acquisition cost.

Meanwhile Sharrif said another nine islets have been put up for lease in the second phase that is expected to attract more investors.

The islets include Miwi which covers 36.82 hectares, Popo (45ha), Sume (3.52ha), Kwata (6.73 ha), Kashani (31.8ha), Njao (470ha), Jombe (76.64ha), Matumbini (200ha) and Fumbo (37ha).

Zanzibar has put up nine more islets for lease after ten islets offered earlier in the year attracted $261.5 million (about Sh603 billion) in investment

The Director said Zanzibaris should not be worried because the islets are not being sold, but leased in line with the Land Act No 12 of 1992.

He added that the government had also put in place mandatory terms for all investors, including hiring locals, environmental conservation and setting aside specific areas for locals to continue with their economic activities.

Commenting on the move, some Zanzibaris told the Zanzibar Mail, that for a long time the islets had not benefitted the government or the people except for a few that were given to investors including Chumbe.

"But they should also demonstrate financial capacity and skills in conserving environment, biodiversity, cultural heritage and community development. These are important things to consider," said Ali Said, a Stone Town resident.

Source: Zanzibar Mail