Especially if you’re traveling outside of international hotel chains or Stone Town, cash remains the best option in Zanzibar. Card payments are far less common than in Europe, America, or other tourist destinations. In less touristy areas, finding an ATM can also be a challenge.
Practical experience has taught us to proceed as follows:
Cash (Essential)
You will need cash very frequently in Zanzibar. We prefer Tanzanian Shillings (TZS) – ideal for everyday use. You’ll often get a better price in local restaurants if you pay in Shillings instead of converting to dollars.
The local currency is also the best choice for tips, local restaurants, small shops, gasoline at the pump (often cash only!), entrance fees for small museums, and paying local guides or drivers, simply because the recipients can easily use the money in their daily lives.
Alternative: US dollars for larger expenses, as the currency denominations mean you’ll quickly need to carry large amounts of local currency (e.g., for rental cars, dives, hotel bills). Important: Bills must be newer than 2006. Older bills are often strictly rejected due to the risk of counterfeiting.
Credit Card (Safety Net?)
Most upscale hotels and larger dive centers accept card payments, but there are catches:
Fees: Many businesses add a 3% to 5% fee to card payments. This is legal and common practice on the island.
Acceptance: Visa and Mastercard are widely accepted. American Express is almost never accepted.
Security: Never hand over your card when paying; always complete the transaction yourself.
A Strategy
Bring a basic amount of USD or Euros in cash.
Exchange some of it for TZS at the airport or in Stone Town.
Pay your hotel bill with a credit card (despite the fee, it’s safer than carrying $2,000/€2,000 in cash).
Rental cars & excursions: Check in advance. Many private providers require cash payment.
For daily expenses, you should always carry approximately 60,000 to 120,000 TZS per person (around €20–40) in small bills for food, drinks, tips, etc.
Caution: ATMs are rare and often empty outside of Stone Town and the airport. Never rely on being able to withdraw cash spontaneously in the north or east.
A little “freedom tip”: Since you value the freedom of being independent, when driving a rental car, always fill up whenever you pass a gas station and pay in cash in TZS. Nothing restricts your freedom more than a closed gas station or a broken card reader in the middle of nowhere.
And please note the additional information regarding tipping.