A-Z Investor Compass
for Fumba Town

A. Arriving in Fumba Town

First impressions and quality of life ◦  Security situation, infrastructure, climate, community ◦  Life in Fumba Town – what can you expect?

B. Ownership & Land Register

Leasehold vs. Freehold ◦ How does property work in Zanzibar? What does a 99 year lease mean? Is it safe? ◦ Registration and legal security

C. Currency & Capital Transfer

In which currency do you pay? ◦ How do I legally transfer money to Tanzania? ◦ Foreign currency accounts & foreign exchange controls

D. Developer & Due Diligence

Who is CPS Africa? ◦ Track Record, Seriousness ◦ How do you vet a developer in Zanzibar?

E. Exit Strategies & Resale

How do I sell my property later? ◦ Is there a secondary market?

F. Financing & Payment Plans

What financing options are available? ◦ Installments, mortgages, international banks ◦ Fumba Town Funding

G. Land purchase process step by step

Reservation → contract → payment → possession ◦ Schedule & documents at a glance

H. Risk Management

Legal, political and financial risks ◦ Protection & Insurance ◦ Investment Risks Zanzibar

I. Property Types & Construction Quality

Apartments, townhouses, villas, studios – overview of building standards, materials, energy efficiency

J. Joint Ownership & Investor Models

Can you buy together? ◦ Fractional Ownership ◦ Buy-to-let models ◦ Fumba Town Investment Models

K. Return on Investment & Rental

Rental Market, Demand, Expected Returns ◦ Short-Term vs. Long-Term Rental ◦ Valor Management

L. Legality & Visa Issues

What can you buy as a foreigner? ◦ Right of residence, investor visa, work permit

M. On-site management

Property Management, Cleaning, Maintenance ◦ Are there full-service offers?

N. Sustainability & Community

Green Construction, Solar, Waste Management ◦ Community & Social Life in Fumba Town

O. Off-plan projects vs. existing properties

Opportunities & Risks with Off-Plan ◦ Construction Completion & Handover Processes

P. Prices & Market Trends

Price development in recent years ◦ Market Analysis & Forecasts

Q. Quality control during construction

Who supervises the construction? ◦ Acceptance process & construction guarantees ◦ Construction quality Zanzibar

R. Queries & Support

Contact points, local contacts ◦ Lawyers, consultants, brokers – who helps?

See Taxes & Fees

Tax liability in Tanzania/Zanzibar ◦ Income tax, property tax, capital gains

T. Timing & Project Phases

When is the best time to invest? ◦ Important deadlines, construction phases & time windows

U. Founding a company as an investor

Company setup for rental or construction ◦ Local partners or alone?

V. Asset Protection & Estate

Protection of the property in the event of death ◦ Wills, Trusts, Inheritance Regulations

W. Maintenance & Operating Costs

Monthly fixed costs, reserves, house fees ◦ How much does maintenance cost?

X. X-Factor: Lifestyle & Vision of the Future

Why Fumba Town is more than an investment ◦ Quality of life, health, education, nature

Y. Your Next Steps

What happens now? ◦ Checklist: Clarify questions, talk to experts, check contract

Z. Summary & Conclusion

Why Fumba Town is an exciting place for investors ◦ All the facts, no more unanswered questions

A. Arriving in Fumba Town

Welcome to Fumba Town. If you're reading this, you're probably in the middle of your investment journey – either physically here in Zanzibar or digitally in the final review process of your property purchase. This compass was written for exactly this moment: as a clear, honest and detailed guide for investors who don't just want to look at a project, but want to make real decisions.

Fumba Town is more than a real estate project. It is a long-term urban development project with the aim of enabling modern, sustainable living in Zanzibar – for international buyers, for Tanzanian families and for generations to come. You are now in the middle of this vision – on site or virtually.

The location

Fumba Town is located on the Fumba peninsula of the same name, about 20 minutes south of Stone Town and Abeid Amani Karume International Airport. The access road is now completely asphalted, GPS-accurate and well signposted. You can easily reach Fumba Town by rental car, taxi or shuttle – if you are at a of our investor trips you will of course be picked up at the airport.

The First Impression – Atmosphere & Community

As soon as you arrive, you feel: This is not a classic "holiday project". Fumba Town is alive – with cafes, parks, playgrounds, workshops and people from over 72 countries. More than 1,000 households have already decided to be part of this growing ecosystem.

As you walk through the streets, you are likely to:

• see local artisans at work, who are involved in construction sites or permaculture gardens,

• Meet families commuting to Stone Town,

• digital nomads working from co-working spaces with fiber optic connections,

• Children playing football or cycling in the streets of Fumba Town in the evening
  

It is no exaggeration to say: Fumba Town is the first real urban sustainability project in East Africa on this scale.

The infrastructure – what you can rely on

As an investor, you want to know: Does this really work here? Our clear answer: Yes – with a realistic view of what is already in place and what is under construction.

What is already available:

• Connection to the national water network, with additional water filtration systems

• Electricity connection + solar systems with storage solution (phase 1 until the end of 2025)

• Internal roads, LED street lighting, rainwater drainage

• Security: 24/7 security, visitor registration, controlled access
  

What you should consider:

• Internet works, but is regionally dependent on provider & router quality

• Infrastructure is still partly under expansion

• Depending on the location of your unit, there may still be construction noises

Who lives here – your future neighbors

Fumba attracts a wide variety of profiles:

• Investorswho want to rent out long-term or create their own residences

• young families, especially from Europe, South Africa, the Middle East

• digital entrepreneursthat combine quality of life and tax benefits

• Tanzanianswho discover Fumba as an affordable alternative to Dar or Stone Town
  

You will quickly notice: The community is open, curious, multilingual – but not a purely tourist bubble.

Our promise: Personal and professional support

CPS Africa is the project developer behind Fumba Town – a German-Tanzanian company based in Zanzibar that has been working in direct partnership with the government since 2015. You can find out more about CPS Africa at Over 1300 jobs, several awards for sustainable building, and partnerships with Bosch Projects, VolksHouse and the Permaculture Design Company underline: Here, there is no improvisation, but real development.

We at Fumba Town Agency officially work as an agency for CPS Africa and accompany German investors like you personally and competently through the entire investment process. In this way, you benefit from our expertise, our German-speaking service and the direct line to the local development team.

We accompany each investor individually:

• Personal tours of units and show homes

• Clear answers on payment plans, contract terms, and risks

• Contact persons for visas, taxes, legal questions on site
  

And if you are not on site at the moment – no problem: We also offer complete advice digitally, including video tours, Q&A calls and legally secured processes via remote signature.

Our advice to you as an investor: Observe. Questions. Feel.

Don't just walk through the show houses – talk to people, ask about the school, the supermarket, the humidity, the infrastructure. Read the publicly available information on cps.africa, compare price-performance with other regions, and critically question together with us whether this investment fits your vision.

You will find that Fumba is not an "easy sell" – it is a long-term plan. If that suits you, you've come to the right place.

B. Ownership & land register – clarity and security for your investment

By reading this text, you are already entering the decisive phase of your investment: property status, lease agreement, legal certainty – these are not details, but the foundation of your investment. The following information is specific to you – as an investor preparing the next step – whether digitally or on-site.

Why you don't buy land in Tanzania in the traditional sense

In Tanzania, the land belongs to the state. The Land Tenure Act of 1992 does not allow foreigners to own their own property – instead, the state grants Right of Occupancy Leases for fixed terms: typically 30, 60 or 99 years, depending on the project and approval by the Zanzibar Investment Promotion Authority (ZIPA).

The role of ZIPA – more than just bureaucracy

ZIPA is the one-stop shop for foreign investment in Zanzibar. It approves projects, manages the Free Economic Zones (EPZs) – including the Fumba Zone – and initiates tax and regulatory incentives. In the FEZ like Fumba, you benefit as an investor from:

• up to 99 years term for lease agreements

• Tax, customs and administrative benefits (including import/export exemption, tax exemption on income for at least 5-10 years)
  

IMPORTANT: The lease agreement confirmed by ZIPA grants you the rightful use of the property – including inheritance, rental, sale or loan.

Why Fumba Town is unique – the only real estate investment in the FEZ

Among all CPS projects, Fumba Town A special position: It is located entirely in the Fumba Free Economic Zone, which gives you these full benefits – like no other CPS property. The projects Soul Paje and Paje Square – on the other side of the island in Paje – also work with CPS as the client, but only offer 33-Year Leaseholds, without ZIPA FEZ benefits.

If you have to choose between Fumba Town and Soul Paje, or even consider both as a combination, we will give you a Individual analysisthat reflects your goals, lifestyle and risk expectations and designs the perfect investment model for you.

Leasehold in Fumba Town – how to stay flexible in the long term

Your investment is made with a 99-Year Leasehold, approved by ZIPA. This gives you these rights:

• Disposal & Inheritance of your unit

• Loan-to-value and rental options

• Clearly defined lease extension regulations

What you should pay attention to now – our checklist

Before you decide to buy a property in Fumba Town or any other project, you should clarify a few key questions that can determine the quality of your investment in the long term.

A first look should be taken at the Contract Term The 99 years in Fumba Town already offer exceptional security – but it still makes sense to familiarize yourself with the Renewal Options familiar.

The question of the Company construction can be relevant in some cases: Some investors decide to buy through a specially founded company – for tax, inheritance or liability reasons, for example. This can be particularly useful for larger investments or rental concepts.

A third, often overlooked point concerns the Transfer and ownership registration: When exactly will the unit become your property? When will you receive your individual documents from ZIPA, and how does this process work in practice? As an experienced agency, we accompany you through exactly these steps so that no uncertainties remain.

And finally: All units actually take advantage of the Free Economic Zone? In the case of Fumba Town, this is generally the case – but it is worth taking a second look, especially in the case of new buildings or mixed projects. Are you sure that your desired unit is covered by the full tax relief? We will help you to secure this contractually in a contract.

These points may seem complex at first glance - but with our support you will never lose track. We check every aspect individually with you and our team on site - and ensure that your entry is as safe and transparent as possible.

Your advantage: German-speaking advice from Fumba Town Agency

As an official partner of CPS Africa, we will guide you through this process in German – with all relevant documents, reviews and links. Our team accompanies you:

• In contract negotiations and term issues

• Through legal advice with local partners

• In person or digitally – with clear recommendations

Fumba Town or Soul Paje? We clarify this individually

If you are unsure which CPS project is right for you, we will make an individual assessment: Should your focus be on Terms, Free Economic Zone Advantages or Location & Lifestyle ? We help you make the decision – alone or in combination.

C. Currency & Capital Transfer – How to Make Your Payment to Fumba Town

In the next step, you don't just scratch the surface – you approach the heart of your investment: how, when and in which currency you pay – and what legal and financial framework conditions you need to know? This is the compass that brings you clarity – whether you are already in Zanzibar or are still planning from your desk.

Payment in USD – this is how processing works in Zanzibar

In Fumba Town, the purchase of real estate is generally done in U.S. Dollar (USD). This international reserve currency is the standard for all foreign investments in Zanzibar – from down payments to installments to final payments. Amounts are denominated in USD, and you transfer them from your European or international account directly to the project developer, CPS Africa, or their authorized trustees. Together with you, we ensure full transparency and security at every single step.

Golden Visa – Securing residence through investment

From just one Investment sum of 100,000 USD in Zanzibar you can enjoy the Golden Visa – a residence permit that entitles you, your partner and up to four children (up to 18 years of age)...

Transfers & currency accounts – this is how it works in practice

For your investment, a International bank transfer usual – via partner banks with US/EU correspondent accounts, this is done securely and traceably. If you wish, you can also open a Foreign currency account in Zanzibar.

Exchange controls & compliance – no hidden hurdles

Tanzania regulates foreign exchange flows – but in Fumba Town it works cleanly:

• Every payment is documented.

• You will receive proof of payment for your tax documents.

• Together with you and the bank, we ensure that all Exchange controls are correctly adhered to – this prevents inquiries or bureaucratic delays.

Your advantage: Full support from Fumba Town Agency

We start where complicated processes begin:

• Transparent payment plans with USD/EUR amounts

• Golden Visa support – paperwork, deadlines, extension

• Connection to banks, tax and financial advisors

• We provide digital documents and coach you step by step

D. Developer & Due Diligence

Who is behind Fumba Town – and what should you look out for before investing?

When you invest in Fumba Town or any related project, you do not do it with an anonymous offshore investor, but with a real, transparent and present developer: CPS Africa. But even with a solid foundation, it is worthwhile to ask the right questions as an investor – and this is exactly where we support you.

Who is CPS Africa?

CPS Africa is a German-Tanzanian urban development company, which has been actively shaping the future of Zanzibar since 2015. Founded by the Hamburg architect Sebastian Dietzold, CPS works closely with local authorities, architects, environmental experts and the Tanzanian government. The company operates its own architectural office, employs over 1300 people and has dealt with projects such as Fumba Town, Soul Paje and Paje Square has made a name for itself.

CPS may refer to:

• Sustainable urban development instead of holiday resorts

• Infrastructure, Community, Permanent Housing – no objects of speculation

• International partnerships with Bosch Projects, VolksHouse, Permaculture Design Company and many more.

• Long-term anchoring on site – with office, building yards and local teams in Zanzibar

🏆 Several international awards for sustainable construction underline the claim: This is not just a place to build – here is a developed.

What does "due diligence" mean for Zanzibar?

Investing abroad means creating clarity. This means Due Diligence – i.e. the careful examination of all relevant documents, responsibilities and framework conditions before you sign. You should pay particular attention to the following:

• Ownership & Land Registry Entries: Is the property registered? Are there any overlaps?

• Project Status & Construction Progress: Is the project approved? Will construction be carried out according to plan?

• Contracts & Payment Terms: Is the sales contract understandable in English? Are there withdrawal clauses?

• Developer Track Record: Has the developer already delivered successfully?
  

We support you in precisely these points: We review contracts, plans, deadlines together with you – and talk openly about opportunities and risks. As a Fumba Town Agency we are not only sales partners, but also direct consultants for German-speaking investors – with one foot in Germany and the other in Zanzibar. This means that you will not only receive full advice from us, but will also be connected to the CPS Africa team on site.

Transparency & Building of Trust

CPS Africa is on Longevity . Unlike short-lived investor projects, CPS has:

• A 15-year master plan for Fumba Town

• About 700 units sold, many have already been handed over

• A separate Free Economic Zone License (Fumba Town only!)

• Official Partnerships with ZIPA, Tanzanian authorities, banks

You can, if you wish:

• See construction progress live

• In the Accounting of the project

• Talk to previous buyers

And if you are not currently on site: We will guide you by Video call through show houses, clarify questions via Q&A sessions and show you all documents digital – from blueprints to draft contracts.

Your advantage with Fumba Town Agency

As a German-speaking agency for CPS Africa we offer you:

• Contract explanation in German

• Support in all legal and tax issues

• Insights into the construction and project structure

• Liaison with architects, financial advisors, planners & CPS management
  

You will be accompanied by us as if you were on site the whole time – and when you are actually here, you will get to know the team, the construction site, the philosophy and the community up close.

Still unsure?

We understand that. Investing in real estate abroad is a big decision – but with a reliable, present and transparent developer like CPS Africa and our direct support turns uncertainty into trust.

👉 Feel free to arrange a Personal interview with us.
👉 Or read more about CPS directly at cps.africa.

E. Exit Strategies & Resale

How does the resale of a property in Fumba Town work – and what should you know early on?

Anyone who buys a property abroad sooner or later also asks themselves the question: How do I get out again – and under what conditions?
Fumba Town is one of the few projects in East Africa where this aspect has already been taken into account in the project development.

Is resale possible?

Yes. As the owner of a 99-year "Right of Occupancy" lease in Fumba Town, you have the option of reselling or transferring your property at any time – for example as part of an inheritance, a co-investment or a strategic portfolio restructuring.

CPS Africa, as a project developer, also provides an internal resale structure for this purpose – including marketing support, legal support and data maintenance.

Important: The property must be paid for in full, used in accordance with the contract and registered in the land register system (see Chapter B).

Performance & Demand

Some of the earliest buyers in Fumba Town – especially for projects before 2020 – have already seen significant value gains. In documented cases, the Increase in value by over 200%.

This is less due to short-term speculation than to real developments:

• Completion of apartment blocks & infrastructure

• Increase in international demand

• Long-term projects such as the Burj Zanzibar or planned educational and leisure facilities

• International presence through hotel brands such as Hilton by Canopy

With each new construction phase, not only the city grows, but also the surroundings of the properties – which has an impact on resale values in the medium to long term.

Is there a secondary market?

A structured resale market within Fumba Town is under construction. Currently, the placement is done either directly through CPS Africa or through partners like us – Fumba Town Agency – with a special focus on the European market.

Unlike classic old buildings, there is still no official "real estate stock exchange" in Zanzibar. Nevertheless, the increasing number of enquiries from Europe, South Africa, the Middle East and North America shows that there is interest in existing properties – especially if they are already registered, furnished and ready for occupancy.

Role of CPS & Fumba Town Agency

Both CPS Africa (as the client) as well as we at Fumba Town Agency support investors throughout the entire life cycle – from purchase to sale.

Our services:

• Price & Market Consulting

• Optional: Preparation of sales documents & exposés

• Organization of on-site or digital visits

• Mediation of legal and tax contacts

• Communication with potential buyers – also in German-speaking countries
  

As a German-speaking agency with official cooperation with CPS, we accompany you every step of the way – even if you not on site are.

Combination with other projects

Fumba Town is not the only project of CPS Africa. The Beach projects "Soul Paje" and "Paje Square" in the east of the island offer other investment structures, e.g. with a 33-year lease and a stronger focus on tourist rentals.

For some investors, this results in an interesting strategy:

• Long-term wealth accumulation via Fumba Town (99 years, free zone, stable development)

• Supplemented by tourist income from Paje (beach location, 33 years, short-term rental)
  

We'll help you figure out if such a dual approach is right for you – or if focusing on one location is a better fit for your goals.

Conclusion

A real estate investment in Fumba Town can already be thought of today with an exit scenario – be it after 3, 10 or 25 years.
The structures for resale, transfer of ownership and legally compliant processing are in place and are growing with the project.

And while you are an owner, you benefit from a city that continues to grow every day: with new educational institutions, leisure zones, restaurants, hotels, infrastructure and international visibility.

If you have any questions about the sale, valuation or reinvestment – please contact us. As Fumba Town Agency, we are your German-speaking interface to CPS Africa and accompany you transparently through all options.

G. Land purchase process step by step

From the first conversation to the title deed - this is how the purchase of a property in Fumba Town works

Buying a property in an international development project such as Fumba Town follows a clear, legally structured sequence. Especially for buyers from Europe who are not yet familiar with terms such as "leasehold", "ZIPA" or "non-citizen investment", a transparent and well-explained process is crucial.

Here you will get a detailed overview of how the buying process works step by step – whether you are on site or carry out the entire process digitally.

1. Project and object selection

The introduction begins with a conversation – either digitally or in person on site in Fumba Town. You will receive an overview of all currently available units: apartments, townhouses, studios, villas or plots.

We at Fumba Town Agency advise you individually – based on your investment strategy, budget and preferences. Combinations of different projects (e.g. Fumba Town + Soul Paje) are also possible.

Important factors when choosing:

• Type of construction (e.g. off-plan or ready to move into)

• Floor selection and orientation

• Yield potential on rental

• Proximity to amenities (e.g. school, pool, beach)

2. Reservation

Once you've decided on a unit, you can reserve it for a limited time – usually 7-14 days. No payment is necessary for this, but you will receive all contract documents for review.

The reservation gives you time to clarify open questions, go through payment plans or get legal advice.

3. Signing the contract

After the reservation, the legally binding phase follows:
You will receive a detailed sales agreement, optionally in English or with German translation. This contract includes:

• Exact property description

• Payment schedule and deadlines

• Cancellation Policy

• Registration details

The signature can be on-site or fully digital via remote signature. After signing, you pay the first instalment (usually 20-30%).

Payment & Construction Progress

Depending on the project phase, construction or construction will now begin. You are joining an ongoing project. You will receive:

• Regular updates on construction progress (photos, videos, site reports)

• Payment requests according to construction progress (e.g. floor slab, roof, interior fittings)

• Access to your digital customer portal at CPS

We are at your side in parallel to track payment terms and coordinate communication with CPS Africa.

Completion & Handover

After the final installment and completion, the unit will be officially handed over to you – including:

• Acceptance protocol

• Quality Control

• Punch list (if necessary)

• Key handover or digital confirmation of ownership

The unit is now ready for occupancy or can be transferred directly to letting – depending on the strategy.

Registration & Proof of Ownership

After handover, the Official registration of your ownership claim at the Tanzanian Investment Authority ZIPA. This is a legally secured "leasehold" model (see Chapter B) that guarantees you 99 years of ownership and use.

You will receive:

• ZIPA Investment Certificate

• Lease agreement with plot number

• Ownership documents in your name (or your company, if desired)

This step is crucial because it enshrines your ownership in the state.

7. Optional: Management, Rental, Resale

After purchase, you have several options:

• Own use

• Long-term or holiday rental

• Resale on the secondary market

CPS Africa offers on request Property Managementpackages – from key service to full-service rental. Remarketing can also be supported through our network (see chapters E and M).

Conclusion

The buying process in Fumba Town is clearly structured, transparent and designed for international buyers. Thanks to our cooperation with CPS Africa, you can go through every step with German support – legally compliant, individual and fully digitizable if you are not on site.

Whether you're investing in an apartment in Burj Zanzibar or a beachfront property in Soul Paje, we'll make sure your buying process is not only smooth, but also strategic.