Zanzibar gives investors three months to develop leased islets

Dar es Salaam. Zanzibar President Hussein Mwinyi on Monday gave investors holding leases for undeveloped islets three months to commence construction or risk losing their rights.

The directive comes as Zanzibar seeks to maximise the economic potential of its picturesque islets through modern tourism and hospitality investments.

Speaking during the launch of Bawe Islet’s revamped facilities, Dr Mwinyi emphasised that any investor who fails to meet the construction deadline will have their lease revoked and the islet reallocated to more capable developers.

“We are giving investors three months to start construction. If we do not see any activity after this period, the government will reclaim these islets and hand them over to those who can develop them,” he said.

Zanzibar boasts over 50 small islets, many of which are ideal for tourism and hospitality ventures. The government has leased out about 20 islands across Unguja and Pemba potential for investments.

Of these, 16 islets have already been handed over to investors at a combined value of $380 million. However, only three islets, including Bawe, have seen construction progress.

Bawe Islet located approximately ten kilometres from Stone Town, is one of the three islets that have already undergone significant development.

The islet now features state-of-the-art facilities, including a desalination plant and solar energy infrastructure. The project is valued at $42 million and is expected to attract tourists from around the world.

Dr Mwinyi commended the Bawe project investors for their commitment to international standards and for involving the local community in the development process.

“The investors did not just build a resort; they have also supported the local fishermen by constructing a modern fishing dock and creating a market for their catch. This inclusive approach is what we envision for all islet investments,” he said.

Dr Mwinyi stressed the importance of accelerating the development process on the remaining islets to unlock their full economic potential.

As part of the broader strategy to ensure the success of these investments, Dr Mwinyi highlighted the importance of building local capacity to meet the labour demands of the high-end tourism sector.

“We must ensure that Zanzibaris have the skills required to work in these modern hotels and resorts. The Italian government has pledged over €5 million to support training programmes aimed at equipping locals with the necessary skills to secure employment in these establishments,” Dr Mwinyi revealed.

Zanzibar’s push for investment has already yielded significant economic benefits. Over the past three years, the region has registered 424 investment projects valued at a total of $5.9 billion.

These projects have created 22,399 jobs for Zanzibaris, underscoring the potential of the islets to contribute to the local economy.

The launch of Bawe Islet was part of the celebrations marking 61 years since the Zanzibar Revolution. President Samia Suluhu Hassan, who was the guest of honour at the event, praised the investment achievements and called for continued efforts to improve the investment climate.

“The fact that we are witnessing such progress today is a testament to the conducive environment we have created for investors. We have reduced bureaucratic hurdles and adjusted our legal framework to make it easier for investors to do business here,” President Hassan noted.

She expressed confidence that the transformation of Bawe Islet would enhance Zanzibar’s reputation as a premier tourist destination and attract more investors to the region.

With only three islets developed so far, Dr Mwinyi’s three-month deadline puts pressure on the remaining 13 islets to kickstart their projects.

“Our vision is to see all these islets transformed into world-class destinations that will boost Zanzibar’s economy and improve the livelihoods of our people. We will not tolerate delays,” Dr Mwinyi asserted.

He reiterated that the government is committed to ensuring that investors have the necessary support to meet their obligations, but they must also demonstrate their commitment by beginning construction within the stipulated time frame.