Zanzibar cuts diaspora investment threshold to boost overseas capital inflows

ZANZIBAR: In a bold move aimed at strengthening economic ties with Tanzanians living abroad and boosting investment inflows, Zanzibar has significantly reduced the minimum capital required for diaspora investors, opening wider doors for participation in key sectors of its economy.

Speaking at the closing of the Zanzibar Investment Forum 2026, Zanzibar Investment Promotion Authority (ZIPA) Chief Executive Officer Salehe Mohamed said the government has reduced the minimum recognised investment capital for diaspora investors from US$ 2.5mn to US$200,000

Additionally, Mr Mohamed said the government is also reviewing and improving laws governing land ownership, investment procedures, and profit repatriation to make it easier for diaspora investors to establish and expand businesses in Zanzibar.

“These reforms are intended to increase diaspora participation in Zanzibar’s economic development and create more opportunities for investment across key sectors,” he said.

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Speaking on behalf of Tanzanians living in Canada, Abdullah Al Barwani cited the absence of dual citizenship and bureaucratic immigration procedures as among the key obstacles facing diaspora investors interested in doing business in Zanzibar.

Diaspora stakeholders called on the government to continue removing legal and administrative barriers to investment, arguing that such measures would boost capital inflows, create jobs, and increase the contribution of Tanzanians abroad to Zanzibar’s development and the national economy.

The forum brought together policymakers, investors, and diaspora representatives to discuss strategies for strengthening investment and enhancing the role of overseas Tanzanians in driving sustainable economic growth.