INVESTMENT OPPORTUNITIES IN ZANZIBAR PRESENTED BY SHARIFF A. SHARIFF

1. INVESTMENT OPPORTUNITIES IN ZANZIBAR PRESENTED BY SHARIFF A. SHARIFF DIRECTOR – INVESTMENT FACILITATION, ZANZIBAR INVESTMENT PROMOTION AUTHORITY (ZIPA)

2. ZANZIBAR OVERALL ECONOMIC OVERVIEW Investments Investments Investments Investments Zanzibar Investments Population 1.3Million (Census 2012) GDP Growth Rate 6.7% (2009) Inflation 18% (2012) Per Capita Income $617 (2011) Area (Sq km.) 2,654 Unguja 1,666 Pemba 988

3. Table below illustrates the Zanzibar Current Account for the year 2004 – 2008.

4. INFRASTRUCTURE Infrastructure to support investments • Functional Sea Port • Airport servicing international flights • Road network covering most investment areas • Considerable ground water resources • Telecommunication facilities • Financial institutions

5. FINANCIAL SERVICES Various local, regional and international financial institutions offer a wide range of services, including facilitating international commercial transaction like opening letters of credit and guarantees. Some of them are: • The Peoples’ Bank of Zanzibar (PBZ) • National Bank of Commerce (NBC) • Barclays Bank • Federal Bank of Middle East (FBME) • Kenya Commercial Bank (KBC) • Exim Bank (T) • Western Union (money transfer services) • Postal Bank • Insurance companies

6. Number of foreign vessels called at Zanzibar port from January 2006 – December 2011 • According to Zanzibar Ports Corporation, Department of Marine Services, total number of 1,187 foreign vessels called between January 2006 to December 2011. • These include general cargo ships, container ships, passenger ships, tankers, car carriers and other types of ships. Number of container ships called within this period were 521 ships

7. Cargo volume handled in Zanzibar Malindi Sea Port Source: Zanzibar Ports Corporation, Department of Operation.

8. ZANZIBAR INVESTMENT PROMOTION AUTHORITY (ZIPA) • Established under THE ZANZIBAR INVESTMENT PROMOTION AND PROTECTION ACT, NO. 11 OF 2004, • A government focal point for Promotion and Facilitation of investments (private capital) in Zanzibar.

9. ZIPA serve, facilitate and provide aftercare services to all investors. ONE STOP FACILITATION CENTRE Tax Issues, Land Issues, Business Licensing and Registration, Immigration and labour issues • OTHER TASKS • Investment Promotion • Policy Advocacy • Image Building

10. Protection of Investors Investors in Zanzibar are protected both constitutionally and through international conventions to which Zanzibar, being part of the United Republic of Tanzania, is a signatory. Some bilateral and multilateral international treaties signed including Multilateral Investment Guarantee Agency (MIGA), the International Centre for the Settlement of Investment Disputes (ICSID), the Convention for the Protection of Industrial Property and Convention on Recognition and Enforcement of Foreign Arbitration Award and double taxation treaties with several countries These arrangements guarantee the security of FDI against losses arising from armed conflict or international disorder, and protection against nationalization. Further, they ensure transfer of profit, dividends and capital.

11. OPPORTUNITIES

12. Tourism Sector Hotels and Modern Restaurant Establishment of specialized cuisine restaurants to serve Thai, Chinese , French, and Japanese (joint venture arrangement) foods With emphasis with eco –tourism opportunities exist in the Development of up market /high class chain hotels in Unguja and Pemba

13. Conference Tourism and Amusement Park Establishment of Conference and Convention Centres ; and investment in Amusement Parks at Fumba and Micheweni

14. Sports Tourism Tourist Ground, Air and Balloon Transport game viewing experiences are untouched opportunity in Zanzibar Sports facilities like Golf /Tennis Court and Foot Ball stadium Sea sports and diving activities

15. Services Sectors • Health care centres • Education • Business & Financial services • Information and Communication technology Establishment of Specialized Hospitals , diagnostic centres and nursing home Establishment of Specialized Modern Colleges for Hotels and Tourism Management Establishment of Shopping Malls

16. Fisheries • Territorial Sea Zone Act and Exclusive Economic Zone Act • Sea Fisheries Act in 1998 as amended in 2002 to implement government policy on fisheries sector • Opportunities in Fisheries • Deep Sea Fishing • Fish Processing & Canning • Aqua culture (fish farming and seaweed production).

17. Agriculture • Poultry farming to serve domestic market, tourism industry and for Export • Construction of Modern slaughterhouse • Production of ornamental fish • Flower production (in greenhouses)

18. Infrastructure A policy framework on road construction and infrastructure has already been put in place to enable the private Sector to participate fully in construction of roads, bridges, ports etc. under BOT, BOO, and BOOT systems. Bridges Ports Roads

19. WHY SHOULD YOU INVEST IN ZANZIBAR ? • Geographical Location • Ideal investment & Profit making destination • Historical sites & other Tourists attraction • Supportive citizens • Political and economical stability • Trainable and affordable labour • Conducive Business Environment • Peace and tranquility

20. INVESTMENT INCENTIVES • Long term lease of land • Up 99 years (renewable) • No payment of land rent during construction period • Up to 30 months grace period may be granted. • 100% foreign ownership allowed ( Joint venture with locals is encouraged) • Opportunity to employ expatriates in key positions • Repatriation of profits and dividends after payment of government dues.

21. OTHER INCENTIVES Source: ZIPA, 2013

22. ZIPA APPROVED PROJECTS - SECTORWISE

23. CONTACT: • EXECUTIVE DIRECTOR ZANZIBAR INVESTMENT PROMOTION AUTHORITY(ZIPA)P.O.BOX 2286ZANZIBAR - TANZANIATEL: 255 24 2237353FAX: 255 24 2232737EMAIL: zipa@zanzinet.comzipaznz@zanzinet.comWEBSITE: www.zanzibarinvest.org

24. AHSANTENISANA