Money & Payments in Zanzibar (2026)

Local Currency: Tanzanian Shilling (TZS)

Updated July 2026 · Sources cited: atmfeesaver.com, zanzibarinsiderbuzz.wordpress.com

Good to know

Good to Know

Zanzibar operates on a practical dual-currency system: tourist-facing businesses prefer USD while local markets and restaurants use TZS
ATMs frequently run out of cash during peak tourist seasons; withdraw cash early in Stone Town or bring sufficient USD from mainland
Only crisp, post-2006 USD bills are accepted; old, torn, or pre-2006 denominations will be rejected
Decline dynamic currency conversion at ATMs to avoid extra percentage fees; always select 'Charge in TZS'
Credit cards work at upscale hotels and restaurants but expect 3-10% surcharges; treat card acceptance as a bonus, not a given
Cash is essential for local markets, dala dalas, and street food; most small establishments are cash-only
Tipping is voluntary but appreciated; cash tips ensure direct payment to staff rather than potentially disappearing through card processing
Coins have limited practical use in daily transactions; carry small paper bills instead

Major Banks

Peoples Bank of Zanzibar (PBZ)
Type
Local bank
Services
Personal and business accounts, digital banking, internet banking
CRDB Bank
Type
Major national bank
Services
Personal accounts, diaspora services, digital services, dedicated account managers for foreigners
Minimum Deposit
TZS 2,000
NMB Bank
Type
Major national bank
Services
Personal accounts, diaspora services, dedicated account managers for foreigners

Bank Account Setup

Minimum Initial Deposit: $1,000
Typical requirement; varies by bank

Documentation Required

Valid government-issued identification (Passport, NIDA, Voter ID, Driver's License, or Zanzibar ID)
Proof of address (within 3 months)
Resident permit (mandatory)

ATM Fees

Strategy: Withdraw larger amounts per transaction to minimize total fees; ATMs frequently run out of cash during busy seasons
Dynamic Currency Conversion: Always decline ATM offers for currency conversion at point-of-withdrawal; select 'Charge in TZS' or 'Without Conversion' to avoid additional percentage fees

Local Bank Fees

Note: Most banks charge per-transaction fees; KCB and EcoBank reported by some travelers as fee-free

Tipping Norms

Overview: Tipping is voluntary and not mandatory; even small gestures are appreciated
Currency Preference: Cash preferred (both USD and TZS); small banknotes most practical; avoid tipping by card when possible
Important Note: Coins rarely used in circulation; vendors prefer small paper bills; cash ensures direct payment to service provider

Taxi Drivers

Standard Practice: Not customary, but rounding up fare to nearest 1,000 TZS is appreciated
Note: Negotiate fare in advance; no meters

Tours And Guides

Day Tours

Currency Local: TZS
Amount USD Per Person: 5

Group Tours

Amount USD Low: 5
Currency Local: TZS
Amount USD High: 10
Note: Per person for group excursions (Stone Town, snorkeling, spice tours)

Specialist Guides

Amount USD Low: 8
Currency Local: TZS
Amount USD High: 10
Note: Per guest per day for specialized diving, snorkeling guides

Local Currency

Tanzanian Shilling (TZS)

Card Acceptance

Overview: Card acceptance is limited outside major hotels and tourist-oriented venues. Most local shops, markets, and restaurants operate cash-only.
Surcharges: Businesses typically charge 3-10% surcharge on card transactions

ATM Details

Card Types Accepted: Visa and MasterCard widely accepted; American Express rarely supported
Daily Withdrawal Limits: TZS 400,000
Note: Some ATMs limit to 400,000 TZS; airport ATM allows up to 600,000 TZS

Accepted Cards

Amex: No
Visa: Yes
Mastercard: Yes
Others Varying: Some Cirrus and Plus cards accepted

Cash Requirements

Dual Currency System: Zanzibar operates on a practical dual-currency system: tourist businesses (hotels, dive shops, tours, upscale restaurants) quote and prefer USD; local businesses (markets, local restaurants, dala dalas) use TZS
USD Bill Requirements: Only crisp, post-2006 bills in $20, $50, and $100 denominations accepted; old, torn, or pre-2006 bills frequently rejected
Critical Cash Needs Tzs: Shopping in villages, local restaurants, street markets, and petrol
Critical Cash Needs USD: Hotels, taxis, car rentals, tours, and upscale restaurants require or strongly prefer USD
Currency Exchange Offices: Available in Stone Town and at airport; US dollars can be exchanged for TZS

Banking setup in Zanzibar requires residency documentation. A resident permit is mandatory to open a local bank account. Several major banks serve both locals and expatriates.

Challenges

Account setup can be difficult and time-consuming without a resident permit. Obtaining a resident permit in Tanzania is described as increasingly uneasy

Alternative Solutions

Mobile banking platforms (M-Pesa, etc.) and fintech solutions like Grey offer alternatives for those without resident permits, though with limitations

Residency Requirement

A resident permit is compulsory to open a local bank account in Zanzibar.

AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this money & payments research for this city. Individual figures may not each trace to one of them.

More About Zanzibar

Data last updated July 2026 · Verify anything important.

Money & Payments in Zanzibar