American billionaire venture capitalist Tim Draper is seeking $7.9 million for his investment in Lupita Island, a luxury resort on Tanzania’s Lake Tanganyika that he has been involved with for more than two decades.

Draper announced the sale on August 28, saying he and his family no longer use the property enough. He is inviting offers directly, with $7.9 million set as the asking price or best offer.

Tanzania land authority clarifies what Draper is selling

The proposed offering, which had already received several offers following the announcement, is more complex than a straightforward private-island transaction. Tanzania’s Ministry of Lands, Housing and Human Settlements Development said on August 31 that the underlying land remains owned by the Tanzania Investment and Special Economic Zones Authority (TISEZA).

According to the ministry, Firelight Safaris Ltd, in which Draper is a shareholder, holds a Derivative Right granted by TISEZA to develop and operate a tourist hotel on the island. Firelight Safaris is therefore the investment vehicle behind the resort, rather than the owner of the underlying Tanzanian land.

The government said Firelight Safaris is a legitimate investor and may transfer its investment to another investor, subject to Tanzanian laws and procedures. The $7.9 million asking price should therefore be understood as relating to Draper’s investment interest and the resort business and associated rights, rather than privately owned land.

From a remote island to a luxury resort

Draper became involved with Lupita Island in 2004 and spent four years developing the property into an ultra-luxury retreat. The resort sits across about 110 acres and features 10 cottages, a spa, gym, games room, bars, swimming pool and private beach.

Its cottages offer private plunge pools and lake-facing spaces, with the resort built around privacy, exclusivity and access to Lake Tanganyika. Guests can enjoy kayaking, snorkelling, fishing, swimming and boating, while the 46-foot Windsor Rose provides lake cruises.

The property’s location also allows it to complement safari destinations including Katavi National Park and the Mahale Mountains, giving it a distinct proposition from Tanzania’s better-known Indian Ocean resorts.

At $7.9 million, the asking price equates to approximately $71,800 per acre based on the 110-acre description. But the acreage alone does not capture the value of an established hospitality operation, infrastructure, boats, brand and investment rights.

The price remains an asking figure, not a confirmed valuation, and no completed transaction or independent valuation has been publicly disclosed.

For Draper, whose fortune Forbes estimates at approximately $2.3 billion, the sale appears to be driven primarily by utilisation. After more than two decades associated with Lupita, the billionaire says he and his family simply no longer use the island enough.

The next test will be whether a buyer is willing to pay $7.9 million for the resort investment and associated rights, making Lupita Island one of the rare luxury tourism assets currently available in Tanzania.