Zanzibar Investment Promotion Authority (ZIPA) stands as the preeminent gateway for all prospective investors seeking to establish a foothold in the enchanting archipelago of Zanzibar. This esteemed organization serves as the primary governmental body entrusted with the crucial responsibilities of promoting, facilitating, and nurturing investments within the region. ZIPA’s mandate extends far beyond mere initial contact, as it provides comprehensive aftercare services to ensure the long-term success and satisfaction of investors who choose to make Zanzibar their business destination.
The authority’s operations are structured around a highly efficient and investor-friendly „one-stop center“ model, which has revolutionized the investment process in Zanzibar. This innovative approach allows investors to access a wide array of essential services under a single roof, effectively streamlining what could otherwise be a complex and time-consuming process. Within this centralized hub, investors can seamlessly navigate through various critical procedures, including the registration of their projects, acquisition of investment certificates, tax registration and incentive arrangements, company registration, procurement of business licenses, securing access to prime investment-ready land, immigration services, and even specialized services related to export processing zones.
To maintain the integrity and quality of investments in Zanzibar, ZIPA has established specific capital requirements for both foreign and local investors. These requirements serve as a safeguard to ensure that incoming investments are substantial and have the potential to contribute meaningfully to the local economy. For foreign investors, the minimum investment capital threshold is set at US $300,000, while local investors are required to commit a minimum of US $100,000. However, recognizing the unique demands and potential of the hospitality and real estate sectors, ZIPA has implemented more stringent capital requirements for these industries. Foreign investors eyeing opportunities in hotels and real estate must demonstrate a minimum capital investment of US $2,500,000, whereas local investors in these sectors are expected to commit at least US $300,000.
The investment process in Zanzibar is designed to be both rigorous and supportive, with ZIPA playing a central role throughout the investor’s journey. At the inception of a project, ZIPA issues an Investment Certificate, which serves as official recognition of the investor’s commitment and compliance with initial requirements. This certificate is not merely a formality but a key that unlocks various incentives and benefits for the investor. After a year of operation, the investor’s relationship with ZIPA evolves further, as they are then issued an Investment Service License. This license, which requires annual renewal, represents an ongoing commitment between the investor and the Zanzibari authorities, ensuring continued compliance and support.
ZIPA’s authority and operational framework are firmly grounded in legislation, specifically the Zanzibar Investment Promotion and Protection Act no. 14 of 2018. This comprehensive piece of legislation not only empowers ZIPA but also mandates cooperation from all government departments and agencies. Such legal backing ensures that ZIPA can effectively fulfill its mission, creating a cohesive and supportive environment for investors across all sectors of the Zanzibari government and economy.