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Zanzibar leases six more investor islets

Tuesday June 21 2022
Zanzibar airport.

The Zanzibar airport. Tanzania and Oman last week signed agreements in the fields of energy, tourism, natural resources, higher education, training and national museums. PHOTO | FILE

By MOHAMED ISSA

Zanzibar has leased six additional islets to private investors for $5.8 million, according to the Minister for Planning Saada Mkuya in the proposed budget estimates for the 2022/2023 financial year presented this week.

Ms Mkuya said the project initiated in the financial year 2021/2022 has 10 islets which fetched $261.5 million.

The isle has also announced a new 10 percent infrastructure tax to liquor imports, which will earn government Tsh3.5 billion ($149.67 million) in revenue to improve infrastructure efficiency and the coffers of the Economic Stabilisation Fund.

Ms Mkuya also announced a requirement for offshore companies operating in the archipelago to produce their financial statements and make them available to the registrar of companies.

Tax reintroduction

Further, foreigner operators and owners of hotels in the archipelago must lodge security with the government as reassurance (to tame tax dodgers and evaders).

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There is also the reintroduction of a five percent income tax for foreign companies in cargo and passenger air and sea transport. The isle is expected to earn Tsh1.3 billion ($555,920) in revenue.

Earlier reports indicated that the islets in the pipeline are Miwi, which covers 36.82 hectares (ha), Popo (45 ha), Sume (3.52 ha) and Kwata (6.73 ha) located in Unguja.

The rest are Kashani (31.8 ha), Njao (470 ha), Jombe (76.64 ha), Mtambini A (200 ha) and Fumbo (37 ha) in sister Island, Pemba.

The archipelago’s total budget for the next year is Tsh2.5 trillion ($1.1 billion).

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