The island of Zanzibar is preparing to position itself as a new global hub for digital nomads and cryptocurrency developers. The government, in partnership with Mauritian-based company OurWorld, is developing a special economic zone known as Dunia Cyber City — a $1 billion project inspired by the idea of a “network state” and aimed at creating a technology-focused enclave with limited traditional regulation.
The initiative is being promoted as a controlled experiment in technological sovereignty, blending physical infrastructure with digital governance while remaining under Zanzibar’s legal authority.
Technology sovereignty and the “network state” concept
Dunia Cyber City draws heavily on the ideas of entrepreneur and investor Balaji Srinivasan, a leading advocate of online-first communities that operate their own institutions before anchoring themselves in physical territory.
The city is planned for around 7,000 residents, the majority of whom are expected to hold “electronic residency” status. This model allows technology professionals from around the world to live and work within the cyber city’s digital jurisdiction without changing citizenship, reinforcing the concept of technology-led sovereignty.
Tax incentives and economic model
Dunia Cyber City offers an aggressive tax framework designed to attract global talent and capital. There is no wealth tax or capital gains tax, while income tax is set at 5 percent for remote residents and 15 percent for local residents.
Technology companies operating within the zone will be exempt from corporate taxes for their first 10 years. Revenue generated from property sales within the cyber city is earmarked to support African startups, creating an investment pipeline intended to stimulate regional innovation.
Infrastructure and legal framework
The project combines a physical settlement built around a high-capacity data centre using ThreeFold technology with a decentralised digital registry. Administrative services, payments and tax processes are automated through dedicated software platforms.
Criminal matters, however, remain under the jurisdiction of Zanzibar’s authorities. The government has granted land for the project under a 30-year lease, after which renewal will be required. At present, around 30 companies and approximately 100 residents have already registered within Dunia Cyber City.
How to become an e-resident
Applicants seeking “electronic resident” status must apply through the OurWorld platform, complete identity verification procedures and demonstrate professional involvement in the technology sector.
If successful, Dunia Cyber City could establish Zanzibar as one of Africa’s most prominent digital economy hubs, while also serving as a real-world test case for alternative models of governance in an increasingly decentralised global economy.
