This study aimed at examining smallholders upgrading in local linkages using evidence from fresh fruits and vegetables value chain from small farmers to tourist hotels in Zanzibar. The study employed a case study strategy of inquiry where, in-depth interviews with the hotel managers, intermediaries and small farmers were engaged in data collection which was later subjected to qualitative analysis and interpretation. The findings show that formal contracts coupled with captive linkages between tourist hotels and small farmers provide greater upgrading opportunities for smallholders. Market and other linkages characterised by informal contracts do not offer any potential for smallholders upgrading as they tend to reduce rewards and increase risks for small farmers with negative ramifications. The strategies and recommendations to strengthen the capabilities of local farmers to access this value chain and link-up with tourist hotels have been provided for further action.BSU-GEP (Building Stronger Universities – Growth and Employment) - DANIDA Project