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Fundo Island is located off the northwest coast of Pemba Island, one of the two main islands of Tanzania's Zanzibar Archipelago. It is one of the larger minor islands in the archipelago and the largest of those surrounding Pemba. Fundo Island is nine kilometres in length, though barely a kilometre in width, and is surrounded by a reef.
Together with the smaller Njao Island, which lies immediately to the north, and several smaller islands to the south, Fundo forms a natural barrier and breakwater for the harbour of the town of Wete, which lies six kilometres to the east.