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. 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, Nyamanzi City, and Afcon City, in Dimani, Nyamanzi, and Dimani, respectively, are currently the FEZ's only urban developments aside from existing villages on the peninsula.
The Fumba FEZ was established by the Zanzibar Investment Promotion Agency (ZIPA) in 1992 in a move to attract foreign investors. Over time, this became an endeavor to increase residential development amid significant population growth in, and the consequent urban sprawl out of the Mjini (Stone Town) metropole. Growth in the area was initially stalled, with many blaming structural red tape. By the mid-2010s, though, 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 agglomeration, 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 School of Economics. In 2027, the western end of the FEZ will serve as the staging location for Zanzibar's co-hosting of the Africa Cup of Nations, with the 'Afcon City' site currently under development; the government plans to transform it post-games into a sports complex and residential development. 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, 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.
Developments Fumba Town was the first major property to be built within the Fumba FEZ. In 2012, talks began between community leaders, government representatives, and German engineering firm CPS Africa to develop the site. CPS ultimately proposed the development to ZIPA in 2015, 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.
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 to face the islands' critical industries on account of climate change, including agriculture and tourism. The physical base of this operation was established in Fumba Town.
In May 2025, Mozambican President Daniel Chapo met with Zanzibari President Hussein Mwinyi to discuss the mutual exchange of knowledge and expertise on various sustainable development initiatives between his nation, Zanzibar, and Tanzania more broadly. His visit included a tour of the Fumba FEZ, from which he stated that he had learned a great deal, including that the Fumba FEZ and the port it contained served as promising investment opportunities. The two countries signed several resolutions and treatises during the state visit, including several agreements to increase mutual investment and joint ventures to support entrepreneurship and small-scale cross-border enterprise.
Nyamanzi City In December 2023, blueprints for Nyamanzi City were delivered to President 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. It would have been situated on a strip bordering the dividing line between Stone Town and Ng'ambo. Up to this point, work on the project has largely been completed by South Korean-based firm Heerim Architects and Planners, though competition exists among developers for various contracts.
Zanzibar International Trade Fair The 12th edition of the Zanzibar International Trade Fair opened at the Nyamanzi Exhibition Grounds in Nyamanzi on December 29 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. 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.
Afcon City In late 2025, Zanzibari President Hussein Mwinyi announced that the Fumba EEZ would serve as home of Afcon City, a new stadium and residential development built to serve as one of the principal match sites for Tanzania's co-hosting of the 2027 Africa Cup of Nations. This came after the agreement of Tanzania and co-host nations Kenya and Uganda to build new stadiums in advance of the competition, having previously agreed to major improvements in pitch quality at existing stadiums on the mainland. It is expected to serve as the staging location for several pre-finals and semifinals matches.
The principal contract holder and lead developer of the project is Globespan Infrastructure. Stadium construction has thus far been primarily managed and performed by the Turkish firm Orkun Group, and design by Manchester-based firm AFL Architects. In March 2026, the Zanzibari government pledged an additional Sh388.8 billion (~$150 million) to complete the project ahead of the competition. By that time, the project was stated to have reached 35% completion. The development is "expected to feature modern training grounds, accommodation facilities, and other infrastructure aimed at enhancing the overall experience for participants and visitors alike". The stadium which will be used for 2027 Cup matches will sit at the complex's center, seating approximately 32,000 people. The project's developers have indicated that the complex will also include a 10,000 seat military parade ground; both the parade ground and Fumba stadium will become the largest such facilities of their kind in Zanzibar upon their respective completion.
Planned developments vary by source, thus no exact projection of the site's final infrastructure is available. According to StadiaWorld, two additional competition grounds are set to be built: a 10,000 seat football stadium, and a 2,500 seat dual-use football/athletics center. Construction Review indicates that development is set to occur in two phases. The first phase (projected to cost $260 million) is set to consist of the main stadium, which will feature convertible seating infrastructure that will allow the site to double as a concert venue and conference center, two 15,000 seat training pitches, a 150-key 5-star luxury hotel, and a specialized sports hospital for competing athletes and medical tourism. The second phase is projected at $185 million, and will feature the construction of an additional 150-key 4-star hotel, a 5,000 seat multipurpose indoor arena, a mixed-use commercial district, and a small-scale passenger port for visitor transport.
Fumba Town
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.
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 subsequent growth in international residents. It has been hailed by local observers as "a model for Africa's sustainable urban future", 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. Design is currently managed by Berlin-based firm OMT Architects. The original design was provided by Dar es Salaam based architecture firm APC Architectural Pioneering Consultants.
Development and expansion CPS has aimed to "[demonstrate] that sustainability, affordability, and modern design can coexist". They initially sought to provide a total of 3000 residential units, covering a 1.5km band of coastline over 149 acres. Construction began in 2017. The first houses were completed in 2018. By 2023, this was 700 units, half of those being permanent residences. Over 1000 units had been sold by that time, making it one of the fastest selling real estate developments in Tanzania. By late 2025, a hundred more had been completed, and the community counted over 1500 residents. CPS is now aiming to complete 5000 units by 2035.
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". 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 losses and the threat of 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.