Place:Fumba Free Economic Zone

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Short description: Urban development site in southwestern Unguja

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9=The Fumba Free Economic Zone is a 3,000 hectare special economic zone on the Fumba Peninsula in the southwest of Unguja Island, Zanzibar, a semi-autonomous state of the United Republic of Tanzania.[1] The FEZ encompasses parts of Kombeni and Shakani Shehias, and all of Fumba, Dimani, and Nyamanzi Shehias; it is thus situated entirely within Maungani Ward. Fumba Town and Nyamanzi City, in Dimani and Nyamanzi, respectively, are currently the FEZ's only residential developments.

The Fumba FEZ was established by the Zanzibar Investment Promotion Agency (ZIPA) in 1992 in a move to attract foreign investors. Growth in the area was initially stalled, with many blaming structural red tape. By the mid-2010s, Fumba Town had been established, and ground broken by CPS. Nyamanzi City did not begin development until the mid-2020s, This occurred at the same time as Fumba Town began to solidify as an urban conglomeration, with 700 units completed and multiple commercial districts established.

The SEZs developments have been built with the intention of establishing Zanzibar as a primary tech hub in Africa and the wider Indian Ocean, and fulfilling the goals of Zanzibar's sustainable development roadmap. Fumba Town has been the site of several international trade and music festivals, as well as host to the Indian Institute of Technology Madras Zanzibar Campus, and a masters program for the African University of Economics. In 2028, it will become host to the Burj Zanzibar, a freestanding concrete core, timber-beam tower which, upon completion, will be the world's largest timber apartment structure. The Fumba Port, in Fumba shehia, on the southeastern coast of the Fumba Peninsula, is set to become Zanzibar's primary import hub upon the completion of a dredging and expansion announced in 2025.

Background

After opening its economy to foreign investors, and forming ZIPA 6 years earlier,[2] 3000 hectares of the Fumba region of Unguja were declared to be a Free Economic Zone (FEZ) in 1992 by the Zanzibari government. Little in the way of development was advanced for the next decade thereafter; gradual reforms over the course of the 2000s, 2010s, and early 2020s gave ZIPA additional administrative powers to act as an investment promotion authority. The agency used this to offer foreign investors incentives such as zero tax on worldwide net income for 10 years, and residency permits for ZIPA registered purchasers of a property valued at $100,000 or more, alongside their spouse and up to four children.[3][4]

Developments

In 2015, German engineering firm CPS Africa proposed Fumba Town to ZIPA, whereafter it was allocated 149 acres and granted a 99 year lease on the property with "rental, sale, mortgage and inheritance rights". Local opposition initially prevented land acquisition, with representatives of CPS claiming that "it took us five years to get this land". During this period, local laws were amended to ease restrictions on development.[3]

In August 2022, the Zanzibari government launched the Silicon Zanzibar initiative, which sought to attract tech companies to the FEZ through a streamlined work visa process. It is intended to help achieve Zanzibar's 'Blue Economy Policy', part of its development roadmap which seeks to "promote economic development with low environmental footprint and limited resource requirements". This is part of a larger goal to diversify Zanzibar's economy in the face of threats likely facing the islands' critical industries on account of climate change, including agriculture and tourism.[5] The physical base of this operation was established in Fumba Town.

Nyamanzi City

In December 2023, blueprints for Nyamanzi City were delivered to President Hussein Mwinyi by the Minister of Trade and Industrial Development Omar Said Shaaban. The foundations were laid the same year. Initially, the project had been envisioned for Kilimani Shehia. This was ultimately changed on account of political concerns surrounding its location.[6] It would have been situated on a strip bordering the dividing line between Stone Town and Ng'ambo.[7] Up to this point, work on the project has largely been completed by South Korea-based firm Heerim Architects and Planners, though competition exists among developers for various contracts.[6]

Fumba Town

Fumba Town

Mji Fumba (Swahili, unofficial)
Corporate-leased residential and community development
Fumba Town
Area
 • Total149 km2 (58 sq mi)

Fumba Town, also known as Silicon Zanzibar, is an urbanization initiative within the area of the Fumba Free Economic Zone. The development is a public-private partnership "led by the Zanzibar Ministry of Investment & Economic Development to attract African and global tech companies" and has been underway since 2014.[8]

A few kilometers north of Fumba-proper, and roughly 15km south of Zanzibar International Airport, the project was envisioned and developed as a model city designed to manage residential overflow resulting from the growth of the Mjini metropole and the growth in international residents.[9] It has been hailed by local observers as "a model for Africa's sustainable urban future",[10] and by government-aligned publications as a "flagship example of how private investment and public policy can combine to shape greener, more inclusive African cities"; it has further been highlighted as a critical component of Zanzibar and Tanzania's Vision 2050 development roadmap.[11] Design is currently managed by Berlin-based firm OMT Architects.[11][12][13][14] The original design was provided by Dar es Salaam based architecture firm APC Architectural Pioneering Consultants.[15]

Development and expansion

CPS has aimed to "[demonstrate] that sustainability, affordability, and modern design can coexist".[11][3] They initially sought to provide a total of 3000 residential units, covering a 1.5km band of coastline over 149 acres.[12][16] Construction began in 2017.[4] The first houses were completed in 2018.[3] By 2023, this was 700 units, half of those being permanent residences.[12][17] Over 1000 units had been sold by that time, making it one of the fastest selling real estate developments in Tanzania.[18] By late 2025, a hundred more had been completed, and the community counted over 1500 residents.[11] CPS is aiming to complete 5000 units by 2035.[3]

On 30 August 2022, a new commercial pavilion was opened to "provide...services such as retail, offices, food and beverage, [and] medical and sports facilities".[16][19] In September of that year, multiple development firms criticized Zanzibar's government for what they perceived to be an overly bureaucratic and insincere incentive delivery process, resulting in the incurrence of losses and simultaneous threat of potential revocation of their lease by Zanzibari authorities. This came on the heels of the revocation of Pennyroyal Company's land lease on the Blue Amber Resort development (led by the same investment team as had set Fumba Town in motion) northeast of Zanzibar City. A representative for CPS pointed to the slow pace of receipt of and vacillating use guidelines for residential permits and title deeds as being major impediments to continued growth and investment in the region.[20][21]

In 2023, the American non-profit Charter Cities Institute announced that it had signed an MOU with CPS Africa to support Fumba Town's expansion. This would involve the creation of a new campus for the African School of Economics in the community, which would serve as an anchor tenant to spur further development.[12] The company website states that the school has since run a first master's course within the development.[9] Additionally, in 2023, the Indian Institute of Technology Madras opened its IITM Zanzibar Campus at Fumba Town.[9][22] Representatives for the company attended the EU-Tanzania Business Forum the same year, calling upon Zanzibar's government to place an intense focus on streamlining the region's real estate policies and administrative framework, claiming that the industry could serve as a massive boon to the islands' economy.[18][23] According to Deutsche Welle, more than 200 businesses have expressed interest in establishing themselves in Fumba Town.[4]

Additional augmentations planned by the developers include a "full-fledged hospitality and business district", more expansive affordable "smart" housing options, district-wide renewable energy infrastructure, alongside improved "health, recreation, and mobility infrastructure to support a growing and increasingly diverse population".[11]

Job creation

Fumba Town has been noted for its role in fueling job creation and skill acquisition in Zanzibar. It has purportedly contributed $60m to Tanzania's economy; the tenders and contracts it has provided to local construction companies and specialty trade groups has served as a boon for local employment, and as an opportunity for apprentices and trainees to get hands on experience in specialized roles, including as "engineers ... carpenters ... [and] solar technician[s]."[11][17]

In February 2023, CPS established an engineering scholarship for female graduate interns "to provide a platform to nurture and empower female graduates to achieve higher female representation in the engineering industry".[24] The program began with four recipients, three from the University of Dar es Salaam, one from Ardhi University.[17] The first student graduated in September 2023.[25]

Sustainable infrastructure and development

The developers have stated that they "never treated sustainability as a marketing phrase", but rather "[their] starting point". This includes the use of mass timber as a substitute for sand, green infrastructure, walkable communities, and "renewable energy and independent water systems, including solar roofs, rainwater harvesting, and decentralized wastewater treatment". Steps have purportedly been taken to bring the community as close to the ideal of a circular economy as possible.[11][3] Timber production will soon be localized upon the completion of the SuperTimber2000 factory in Zanzibar.[11] The development maintains a permaculture landscape and, as of 2023, has achieved 94% waste recycling.[17]

The project has been credited with helping to revive the Fumba Peninsula's nocturnal red colobus monkey population, which was decimated alongside the region's mangrove forests as a result of logging in the late 20th and early 21st centuries. This is aided by the development's hosting of 157 plant and tree species which, combined with a central water fountain, have helped to return local bird and insect populations as well.[3]

Burj Zanzibar

A 96-meter timber tower known as the "Burj Zanzibar" has been under development since 2022, and is expected to be completed between 2027 and 2028. It will operate under the banner of Canopy by Hilton, being Zanzibar's first such enterprise; it is the first structure of its kind on the African continent.[13][26][27] The development was launched in Muscat, Oman, on 1 October 2025. The tower was originally set to consist of 266 units.[28] Covering 28 stories, it will be constructed using "a steel-reinforced concrete core, with cross-laminated timber and glulam comprising other structural elements".[27][28] The structure will include passive design elements aimed at enhancing sustainability, including "permanent sun shading provided by the facade to limit heat-gain on the inside, [and] the integration of roof gardens and planters."[27]

Upon completion, it will be the world's tallest timber apartment structure.[17] It will be constructed with the assistance of specialists from Switzerland, Austria, Germany, South Africa, Tanzania, and the United States.[27] Unit prices will range from $79,000 to roughly $951,000.[29]

Specifications[13]
Typology Mixed-use high-rise
Gross area 55.350 m2
Net area 34.130 m2
Accommodations 293 apartment-units / 180 keys
Cost $57.4 million
Material Hybrid engineered timber

Fairgrounds

Zanzibar International Trade Fair

The 12th edition of the Zanzibar International Trade Fair opened at the Nyamanzi Exhibition Grounds in Fumba Town on December 19 2025, lasting until January 16; the opening was officiated by 2nd Vice President of Zanzibar Hemed Suleiman Abdulla. The government intends for the trade expo to spur market development and improve links between regional producers and international export partners.[30] Participants in the expo include government representatives, domestic merchants, and foreign firms. At the expo, the government announced a plan to register at least 150 development projects each year.[31]

Futopia

The first iteration of FuTopia, an urban festival organized by Busara Promotions showcasing "creativity, sustainability, and innovation" took place in Fumba Town from August 29 – 31 2025.[32] It is an extension of the group's Sauti za Busara (Sw : 'Wise Voices') festival, which has been held annually in February for more than 22 years; Fumba Town has served as the festival's main sponsor since 2022.[33][34] A portmanteau of "future" and "utopia", it was described by The Citizen as "aim[ing] to transform everyday spaces into vibrant cultural zones that bring together music, art, food, fashion, sports, and technology".[32][35]

Morning events were primarily centered around cultural, civic, and community engagement; evening events were largely entertainment based, featuring musicians from across the African continent, among them "Bensoul ... Rosa Ree, Damian Soul, Wamoto Music, Humphrey Mubba, Warriors of the East, the all-female Uwaridi Band, Tryphon Evarist, and DJ KCM".[32][35] Also featured were live DJ sets and multimedia performances.[32] Attendees traversed multiple "zones" concerning a variety of different cultural modes; topics ranged from international food to health, craftsmanship, sports, children's education, and the literary arts.[32][35] The second iteration of the festival will take place in August 2026, with plans to be held annually moving forward.[34][36]

Financials and major tenants

Home prices can range from roughly $40,000 to $381,000. A vast proportion of the development's clientele are foreign nationals, hailing from over 50 countries, chiefly among them Kenyans, Americans, and Omanis. The company's annual return on investment is estimated at 15% after tax.[3][17]

Beyond the Fumba Town development, CPS Africa's stakeholders and partners are also involved with the Paje Square project in Unguja's southeast, as well as the Blue Amber Resort project northeast of Stone Town.[20][37] The development is home to offices for several prominent corporations, including Wasoko, recognized by the Financial Times as Africa's fastest growing company, which has moved more than 40 tech workers and several members of its senior leadership to the property.[5][38] Wasoko later shut down its Zanzibar office and paused operations in Uganda and Zambia weeks before finalizing a merger with MaxAB. It had initially opened its Zanzibar office in 2022.[39]

Fumba Port

This section is an excerpt from Fumba § Fumba Port[ edit ]

Commentary and criticism

Gentrification and community expulsion

Writing for The Citizen, Paul Owere praised new urban developments such as Fumba Town and Nyamanzi City, seeing them as "stepping stones in the transformation of Zanzibar into a dynamic business hub where the rhythm of commerce blends with the island's timeless allure". However, he pointed to concerns over the potential for such projects to displace locals and traditional ways of life in Zanzibar, posing a threat to Unguja's "unique identity". He worried that "pristine beaches might give way to concrete jungles, and the gentle sway of palm trees could be lost to the drone of traffic and construction." Nonetheless, he highlighted arguments from local businessmen that such projects represented a significant opportunity to attract investment and foster job creation.[40]

Speaking to Deutsche Welle in 2023, locals expressed concerns over the affordability of Fumba Town's properties.[4]

Coastal degradation and environmental concerns

This section is an excerpt from Fumba § Coastal degradation[ edit ]

Consequently, Nyamanzi and Kombeni shehias were also noted in that 2017 UNICEF report as two of the other shehias in Magharibi B District under the greatest threat from seawater encroachment; thus, 3 of the four territories most at risk from seawater encroachment among the 18 shehias of Magharibi B District were within the Fumba Free Economic Zone. Simultaneously, the report listed pollution and construction taking place too close to the beach as contributing to environmental concerns in the region.[41]

See also

  • Revolutionary Government of Zanzibar
  • Adama Special Economic Zone
  • Vision 2050 (Rwanda)

References

  1. ↑ "Master Plan Report (2022-2042) | Zanzibar Investment Promotion Agency (ZIPA)". 2022. https://www.ng.tzembassy.go.tz/uploads/Master_Plan_Report.pdf. 
  2. ↑ "The Organization" (in en). 2024-07-01. https://zipa.go.tz/r1d2t9/the-organization. 
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Jalio, Tom (2025-06-26). "HOUSING HOTSPOT: How dream homes are built with timber in Fumba Town". The Star. https://www.the-star.co.ke/news/big-read/2025-06-26-how-dream-homes-are-built-with-timber-in-fumba-town. 
  4. ↑ 4.0 4.1 4.2 4.3 Hilgers, Julian (2023-10-26). Silicon Zanzibar: Will locals reap the benefits? (Video). Retrieved 2026-01-11 – via Deutsche Welle.
  5. ↑ 5.0 5.1 "Government launches “Silicon Zanzibar” initiative with Wasoko" (in en). 2022-08-31. https://www.thecitizen.co.tz/tanzania/news/national/government-launches-silicon-zanzibar-initiative-with-wasoko-3932592. 
  6. ↑ 6.0 6.1 "Nyamanzi: A city of modernity rises in Zanzibar" (in en). 2023-12-22. https://www.thecitizen.co.tz/tanzania/zanzibar/nyamanzi-a-city-of-modernity-rises-in-zanzibar-4465316. 
  7. ↑ "Ward Map of Zanzibar | Kilimani (Urban Ward)". https://www.citypopulation.de/checkhuman.html?url=%2Fen%2Ftanzania%2Fzanzibar%2Fadmin%2F. 
  8. ↑ Joe (2022-10-25). "Developer unveils plans for Africa’s first hybrid timber tower in Zanzibar" (in en-GB). https://www.globalconstructionreview.com/developer-unveils-plans-for-africas-first-hybrid-timber-tower-in-zanzibar/. 
  9. ↑ 9.0 9.1 9.2 "Urban Pioneer Fumba Town | FUMBA TOWN" (in en-US). https://fumba.town/2025/09/09/urban-pioneer-fumba-town/. 
  10. ↑ "Fumba Town at 10: From bold vision to a model for Africa’s sustainable urban future" (in en). 2025-11-27. https://www.thecitizen.co.tz/tanzania/zanzibar/fumba-town-at-10-from-bold-vision-to-a-model-for-africa-s-sustainable-urban-future-5277718. 
  11. ↑ 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 reporter, Daily News (2025-11-26). "Fumba Town celebrates a decade of urban innovation - Daily News" (in en-US). https://dailynews.co.tz/fumba-town-celebrates-a-decade-of-urban-innovation/. 
  12. ↑ 12.0 12.1 12.2 12.3 "Fumba Town" (in en-US). https://chartercitiesinstitute.org/fumba-town/. 
  13. ↑ 13.0 13.1 13.2 "BURJ Zanzibar - Fumba Town". https://omt-architects.com/work/burj.php. 
  14. ↑ "OMT Architects markets Fumba Town tech in US - Daily News" (in en-US). 2023-04-11. https://dailynews.co.tz/omt-architects-markets-fumba-town-tech-in-us/. 
  15. ↑ "Projects" (in en-US). https://www.apc-tz.com/work. 
  16. ↑ 16.0 16.1 Reporter, Dailynews (2022-08-29). "New commercial centre to open in Z’bar Fumba town - Daily News" (in en-US). https://dailynews.co.tz/new-commercial-centre-to-open-in-zbar-fumba-town/. 
  17. ↑ 17.0 17.1 17.2 17.3 17.4 17.5 "CPS -Fumba Town unveils stem program for female engineers" (in en). 2023-02-06. https://www.thecitizen.co.tz/tanzania/news/national/cps-fumba-town-unveils-stem-program-for-female-engineers-4113456. 
  18. ↑ 18.0 18.1 "Real estate ‘can play key role in Zanzibar economy’" (in en). 2024-09-18. https://www.thecitizen.co.tz/tanzania/zanzibar/-real-estate-can-play-key-role-in-zanzibar-economy--4140356. 
  19. ↑ "Zanzibar: First commercial centre at Fumba Town set to open" (in en). 2022-08-29. https://www.thecitizen.co.tz/tanzania/business/zanzibar-first-commercial-centre-at-fumba-town-set-to-open-3929786. 
  20. ↑ 20.0 20.1 "Shock waves hit Zanzibar's nascent real estate industry" (in en). 2022-09-17. https://www.thecitizen.co.tz/tanzania/news/national/shock-waves-hit-zanzibar-s-nascent-real-estate-industry-3951880. 
  21. ↑ "Low GDP, but Zanzibar, Tanga go for detached buildings" (in en). 2022-11-07. https://www.thecitizen.co.tz/tanzania/zanzibar/low-gdp-but-zanzibar-tanga-go-for-detached-buildings-4010800. 
  22. ↑ "IIT Madras Zanzibar Campus | Empower Your Future with IIT" (in en). https://zanzibar.iitm.ac.in/. 
  23. ↑ Reporter, DAILY NEWS (2023-02-28). "Right policies vital for impactful real estate industry - Daily News" (in en-US). https://dailynews.co.tz/right-policies-vital-for-impactful-real-estate-industry/. 
  24. ↑ "Zanzibar project gets female graduates" (in en). 2023-02-14. https://www.thecitizen.co.tz/tanzania/zanzibar/zanzibar-project-gets-female-graduates-4115798. 
  25. ↑ "CPS STEM programme celebrates first graduation" (in en). 2023-09-20. https://www.thecitizen.co.tz/tanzania/news/national/cps-stem-programme-celebrates-first-graduation-4373820. 
  26. ↑ "Valor Hospitality enters the branded residences advisory and management market for lifestyle, mixed-use precincts and a first in Zanzibar" (in en). 2024-09-11. https://www.thecitizen.co.tz/tanzania/zanzibar/valor-hospitality-enters-the-branded-residences-advisory-and-management-market-for-lifestyle-mixed-use-precincts-and-a-first-in-zanzibar-4757466. 
  27. ↑ 27.0 27.1 27.2 27.3 "Not Just The Beaches, Zanzibar Aims For World Record With Timber Tower" (in en). 2022-10-08. https://www.forbesafrica.com/current-affairs/2022/10/08/not-just-the-beaches-zanzibar-aims-for-world-record-with-timber-tower. 
  28. ↑ 28.0 28.1 Joe (2022-10-25). "Developer unveils plans for Africa’s first hybrid timber tower in Zanzibar" (in en-GB). https://www.globalconstructionreview.com/developer-unveils-plans-for-africas-first-hybrid-timber-tower-in-zanzibar/. 
  29. ↑ "Zanzibar to build World’s tallest timber apartment tower" (in en). 2022-10-06. https://www.thecitizen.co.tz/tanzania/zanzibar/zanzibar-to-build-world-s-tallest-timber-apartment-tower-3975856. 
  30. ↑ "Local vendors take centre stage as Zanzibar International Trade Fair officially opens" (in en). 2026-01-06. https://www.thecitizen.co.tz/tanzania/zanzibar/local-vendors-take-centre-stage-as-zanzibar-international-trade-fair-officially-opens-5318416. 
  31. ↑ "Zanzibar aims to register 150 investment projects annually" (in en). 2026-01-05. https://www.thecitizen.co.tz/tanzania/zanzibar/zanzibar-aims-to-register-150-investment-projects-annually-5317044. 
  32. ↑ 32.0 32.1 32.2 32.3 32.4 "New festival FuTopia to launch in Zanzibar this August" (in en). 2025-06-26. https://www.thecitizen.co.tz/tanzania/news/entertainment/new-festival-futopia-to-launch-in-zanzibar-this-august-5096462. 
  33. ↑ "Fumba Town to provide core funding for Sauti za Busara" (in en). 2022-10-18. https://www.thecitizen.co.tz/tanzania/zanzibar/fumba-town-to-provide-core-funding-for-sauti-za-busara-3989472. 
  34. ↑ 34.0 34.1 Yussuf, Issa (2025-08-30). "FuTopia kicks off with call for artistic participation - Daily News" (in en-US). https://dailynews.co.tz/futopia-kicks-off-with-call-for-artistic-participation/. 
  35. ↑ 35.0 35.1 35.2 Template:Cite Instagram
  36. ↑ "2026: A year packed with festivals, culture and creative celebration" (in en). 2026-01-09. https://www.thecitizen.co.tz/tanzania/magazines/2026-a-year-packed-with-festivals-culture-and-creative-celebration-5321152. 
  37. ↑ Template:Cite Instagram
  38. ↑ Pilling, David (2022-05-02). "FT ranking: Africa’s Fastest Growing Companies 2022". https://www.ft.com/africas-fastest-growing-companies?syn-25a6b1a6=1. 
  39. ↑ Abuya, Kenn (2024-03-15). "Exclusive: Wasoko exits Zanzibar, pauses Uganda and Zambia business" (in en-US). https://techcabal.com/2024/03/15/wasoko-exits-zanzibar/. 
  40. ↑ "Zanzibar: Nyamanzi ushers in a new dawn beyond beach tourism" (in en). 2023-12-16. https://www.thecitizen.co.tz/tanzania/zanzibar/zanzibar-nyamanzi-ushers-in-a-new-dawn-beyond-beach-tourism-4466662. 
  41. ↑ "Magharibi B District Profile". UNICEF, in coordination with the Revolutionary Government of Zanzibar. June 2017. p. 47 (61). https://www.unicef.org/tanzania/sites/unicef.org.tanzania/files/2018-10/Tanzania-2017-Magharibi-B-District-Profile.pdf. 



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