President Mwinyi Issues Ultimatum to small Islands Lessees

On January 7, 2025, President Dr. Hussein Ali Mwinyi, the President of Zanzibar and Chairman of the Revolutionary Council delivered a firm ultimatum to investors who have leased islands under the Zanzibar Investment Promotion Authority (ZIPA) but have yet to commence development. This directive was made during the inauguration of the Cocoon Collection hotel on Bawe Island, a significant investment valued at over USD 40 million, which is expected to create approximately 400 jobs for local residents.

President’s Ultimatum

During his speech, President Mwinyi specified a three-month deadline for lessees to begin their projects, warning that failure to comply could result in the revocation of their licenses. This initiative aims to ensure that leased properties contribute to the local economy and do not remain dormant.

Invitation for Lease of Small Islands

The Revolutionary Government of Zanzibar (RGoZ) through ZIPA had initiated in two phases the leasing of  small islands to promote high-end economic activities. This decision followed a positive response from the public and investors, aiming to diversify the blue-economy policy by attracting substantial investments. The small islands surrounding Zanzibar are viewed as valuable assets for investors, offering a win-win potential for both parties.

ZIPA invited potential investors to submit proposals for the development, operation, and management of these small islands under long-term leases. Interested investors must demonstrate their experience and ability to manage investment projects, financial capacity, and commitment to environmental conservation, biodiversity, and community development. Proposals included:

– Detailed information on the intended high-end investment.

– The Lease Acquisition Cost (LAC) for the intended island.

– The amount of investment capital to be invested.

– A timeline for project implementation.

The some of the specific islands that were available for leasing included:

– Sum(South Unguja)

-Popo (North Unguja)

– Miwi (South Unguja)

– Jombe (South Pemba)

– Kwata(South Pemba)

– Kashani(South Pemba)

– Fundo(200 hectares, North Region)

– Njao (200 hectares, North Pemba)

– Matumbini A(200 hectares, South Pemba)

Positive Outlook

The government’s commitment to fostering a conducive investment environment is evident, as it seeks to attract more investors to Zanzibar’s rich tourism potential. The opening of the Bawe hotel marks a positive step forward, showcasing the collaborative efforts between the government and private sector to enhance Zanzibar’s global standing as a premier tourist destination. This proactive approach not only aims to boost the local economy but also transforms previously idle islands into productive assets that benefit surrounding communities.