Ibo Island is one of the most ancient settlements in Mozambique, Its history dates back to at least the 1600. Arab traders already did commerce with the local inhabitants as early as 600AD, trading slaves, gold and ivory. In 1498 Vasco de Gama came for the first time in the Quirimbas and in 1522, the Portuguese attacked Quirimbas Island and destroyed the Arab's fortifications.

By 1590 the Portuguese had annexed seven of the nine biggest islands while only two were ruled by the Muslims. Ibo Island traded in amber, jet, ivory, ambergris and turtle shell.

The Portuguese selected Ibo Island as the main settlement for its fresh water natural reserves coming from the annual rain fall this enabled them to raise cattle, pigs and goats in Ibo. Various agricultural products were exported and even Ilha de Mozambique was supplied from Ibo Island. By this time, Ibo Island had become the trade centre of the islands and in the mid 17th century the Archipelago was ruled by two main 'Mazumgo' (white) families - the Morues and the Meneses.

 In the late eighteenth century, Portuguese colonialists built the Fort of São João, which still stands today, and the town became as a slave port to feed the French demand for cheap labour. Ibo therefore became the second most important post in the region after Mozambique Island. Fort of São João Batista (St. John Baptist) was completed in 1791. The little chapel housed inside of the fort was built in 1795, followed by the Fort Santo Antonio (St. Anthony) and Fort of the Bairro de Rituto in 1847, which still stand today and give the triangle shape of the old town.

Throughout the 18th and 19th century the population of Ibo Island and the adjacent regions were consistently attacked by Dutch and Malgash forces. In 1897, Ibo Island was integrated into the administration of the Niassa Company and it is from there on that the island and population enjoyed relative safety and peace.

 In 1902 the capital District of “Cabo Delgado” was transferred from Ibo Island to “Port Amelia”, renamed after the independence to “Pemba”, which remains the capital until today. This was the beginning of a decline for Ibo as trading was slowly transferred to Pemba which offered a deeper port. Subsequently the war gave the final strike to Ibo and all the fine examples of 19th and 20th century Portuguese architecture were slowly degrading and Ibo becoming a ghost town.

 In 2002, the Quirimbas National Park was created and tourism started flourishing on Ibo. This gave a new boost for the local economy and the preservation as well as restauration of the existing inheritage left by its fascinating history.