It is one of the larger minor islands in the archipelago and the largest of those surrounding Pemba.

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.

Fundo Island is home to the community of Ndooni village.

It was decided for the local octopus fisheries to be closed for three months, in order to allow the stock to recover.

This resulted in a huge increase in fisherman's catches after the fishery was re-opened, with the opening day seeing more than a 20-fold jump in daily landings.