The $1 billion project reshaping Zanzibar’s tech ambitions

At a Glance

• Zanzibar is launching a $1 billion digital city to attract global tech firms and remote professionals
• Dunia Cyber City will operate as a special economic zone with tax incentives and digital residency
• The project aims to reduce reliance on tourism and expand the island’s role in global digital services

Zanzibar is making a calculated push to become East Africa’s next technology center, unveiling a $1 billion digital city designed to attract global tech firms, remote professionals and foreign capital.

The project signals how smaller economies are competing for high-value digital work as geography plays a diminishing role in where companies operate. 

Officials say the initiative is meant to broaden Zanzibar’s economic base, which has long relied on tourism and trade.

By focusing on technology and cross-border services, the island hopes to create more stable, higher-paying jobs while drawing in long-term investment. 

The effort also reflects a wider trend among emerging markets seeking to position themselves as safe, predictable places for digital businesses.

Clear rules, reliable infrastructure and favorable tax policies are increasingly seen as essential tools in that race. 

Zanzibar’s government has framed the project as a way to connect the island more directly to global commerce without the need for heavy industry or large-scale manufacturing.

A special zone with global ambitions 

At the center of the plan is Dunia Cyber City, a proposed special economic zone on the Fumba Peninsula.

The project is being developed by OurWorld, a venture led by French technology entrepreneurs Fournier and Nicolas De Spiegeleer, in partnership with the Zanzibari government. 

The city is designed to host technology firms, startups and remote workers operating across borders.

It will combine residential development with a digital residency program that allows professionals to manage work, taxes and business activity from outside the island. 

Developers estimate that 5,000 to 7,000 people will live in the city, while a much larger group will engage through the e-residency system.

Incentives, oversight and government backing 

Dunia Cyber City will operate as a “Digital Free Zone” under Zanzibari law.

Incentives include a 5% income tax rate for remote residents, 15% for physical residents, and a corporate tax holiday for the first 10 years. There will be no capital gains or wealth taxes. 

In November 2024, President Hussein Ali Mwinyi authorized OurWorld to manage the zone through a joint venture with ZICTIA, the state-owned telecom infrastructure firm. The agreement includes a 30-year land concession, with options to extend. 

Supporters say the project could place Zanzibar alongside other global digital gateways if it delivers on its promises.

Skeptics note that execution, regulation and demand will ultimately determine whether the city becomes a working model—or remains an ambitious plan on paper.