Dodoma – Remittances from the Tanzanian diaspora soared to a record-breaking 2.116 trillion TZS (approx. $810 million USD) in just six months (July–December 2024), reaffirming the growing economic power of Tanzanians living abroad.
Speaking before Parliament on Wednesday, Foreign Affairs and East Africa Cooperation Minister Mahmoud Kombo said figures from the Bank of Tanzania (BoT) show a sharp rise from the 2.045 trillion TZS recorded for the entire year of 2023.
“This increase underscores the vital role the diaspora continues to play in supporting livelihoods and contributing to Tanzania’s financial sector,” said Kombo.
Investment Beyond Remittances
Remittances weren’t the only area seeing a spike. Tanzanians abroad also expanded their investments in collective schemes and real estate:
- 7.5bn/- (approx. $2.9M) in the UTT-AMIS Collective Investment Scheme in 2024, up from 6.4bn/- in 2023
- 9.28bn/- (approx. $3.6M) invested in real estate through the National Housing Corporation and private developers, up from 7.56bn/- the previous year
Government Strengthens Diaspora Engagement
The Ministry has made deliberate efforts to strengthen engagement with the diaspora through:
- Joint service clinics and business meetings in key diplomatic locations
- The Diaspora Clinic in Comoros (August 2024) which connected 300+ diaspora members with 18 Tanzanian service providers
- Participation in international forums such as the IOM-hosted conference on Migration and Diaspora Engagement in South Africa
A major outcome was the launch of a collaborative “Tanzanian Diaspora Mapping” exercise with IOM, aimed at producing data on the global distribution of the Tanzanian diaspora to inform targeted development strategies.
Additionally, the Ministry upgraded the Diaspora Digital Hub in July and December 2024 to make registration easier and boost participation.
“The objective is to enhance user-friendliness and ensure accurate diaspora statistics,” Kombo said.
Not Everyone is Impressed
Despite the promising numbers, Vunjo MP Dr Charles Kimei expressed concern that Tanzania’s remittance levels fall short of potential. He pointed out that:
- Tanzania’s 2024 remittances (approx. $758.8M) account for just 0.9% of GDP
- In contrast, Kenya received $4.8 billion (4.1% of GDP), and Rwanda $537 million (3.9% of GDP)
- Even Burundi outperformed Tanzania relative to GDP, with $49 million (1.4% of GDP)
World Bank data from 2023 ranks Tanzania sixth out of eight East African Community (EAC) countries in total remittances, behind Kenya, DRC, Somalia, Uganda, and South Sudan.
“We must do more to unlock the full economic potential of our diaspora,” Dr Kimei insisted.
Final Thoughts
The Tanzanian diaspora is showing increasing commitment to economic growth, but experts agree that more strategic policy, digital innovation, and incentive structures are needed to match or surpass regional counterparts.
As the government continues to engage the diaspora more directly, the focus must shift toward unlocking untapped financial flows, building trust, and amplifying return on remittances through investment, savings, and national development programs.
Follow this blog for more updates on Tanzania’s economic growth, diaspora engagement, and financial sector insights.
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