- Kenyan investors amount to 30 per cent of investors on the island.
- Zanzibar has seen a strong development as a highly attractive tourism destination with growth rates of 15 per cent and above each year.
- Kenyan investors seeking to expand their investment portfolios can buy projects in Fumba Town and The Soul in Zanzibar.
Kenya investors have turned to Zanzibar as a new investment destination following the opening up of the island’s economy to foreign investors.
According to a German real estate firm CPS, Kenyan investors amount to 30 per cent of investors betting on the island.
“We are seeing a lot of interest from Kenyans who want to invest in the island, Kenya is currently the third-largest investor after Tanzanian locals in first place followed by UAE,” said Sebastian Dietzold, Chief Executive CPS.
The firm set up operations in the Kenyan market, to offer investment opportunities for real estate projects in Zanzibar.
The Zanzibar based firm is also targeting Kenyan investors seeking to expand their investment portfolios to buy into its current projects Fumba Town and The Soul in Zanzibar, with backing from the Government of Zanzibar which aims to increase private investments into the islands.
Zanzibar Invites Foreign Direct Investment Into its Blue Economy
“Fumba Town is the first big project we have in the East African region, and we are here to promote Zanzibar as an investment destination for Kenyans, with very attractive properties, high return on investment and appreciation of capital. We offer low starting prices, which are hard to find in Kenya, investing into a booming economy which is very investment friendly,” he added.
Fumba Town is a modern spacious cosmopolitan community located on the tropical island of Zanzibar. It is a combination of beautiful, equitable homes within a carefully designed master plan creating safe, green and family-friendly communities.
Further CPS is developing the residential resort ‘The Soul’ on the East Coast of Zanzibar, one of the most attractive tourism spots on the island and famous worldwide as a kite surfing destination. The Soul offers holiday apartments that can be managed on a serviced apartment scheme, generating high returns for its investors. (https://compassionprisonproject.org/)
Zanzibar has seen a strong development as a highly attractive tourism destination with growth rates of 15 per cent and above each year. Additionally, Zanzibar’s Urban West Region is experiencing a strong population growth with over 6 per cent per annum, creating a huge demand in the housing sector.
In July, the government of Zanzibar announced a new tax and residency programme for foreigners seeking to live and invest in the island.
The new investor programme, allows real estate investors to acquire a residency permit as an investor, meaning the party will be allowed to live in Zanzibar as a non-citizen. They are also not required to live in Zanzibar permanently.
New tax and residency benefits for real estate buyers include; No Income tax on worldwide income and wealth, Resident permit for VILLA buyer plus Partner and up to four children under 20 years of age, First buyer pays only 50 per cent of normal capital gains on sale of unit, at 5 per cent instead of 10 per cent, Foreign ownership allowed, Income tax is halved only on local income- 15 per cent instead of 30 per cent, applicable to foreigners only.
Business investors wanting to invest in ventures such as restaurants, bars, watersports and retail operations will receive similar benefits as real estate investors through approved “Strategic Investment” projects only.
In a separate story, the President of Zanzibar and Chairman of the Revolutionary Council, Hussein Mwinyi, has called upon the EAC Partner States to develop a coordinated approach that will be instrumental in overcoming the challenges facing the tourism sector occasioned by the outbreak of COVID-19.
