Tanzanians Abroad Remit Over Sh2.1 Trillion in Six Months, Fueling National Growth

Tanzanians living abroad have sent home more than Sh2.1 trillion within the first six months of the 2024/25 financial year. The remittance figure, which represents over $800 million, marks a notable increase from Sh2.05 trillion recorded during the same period last year.

The update was shared by the Minister of Foreign Affairs and East African Cooperation, Mahmoud Thabit Kombo, during the presentation of his ministry’s 2025/26 budget estimates to Parliament. According to the minister, remittances from the diaspora have continued to play a crucial role in supporting household livelihoods, increasing local investment, and contributing to the growth of the financial and real estate sectors.

The government noted that diaspora investments in collective schemes, particularly through UTT Asset Management and Investor Services, rose to Sh7.5 billion in 2024 from Sh6.4 billion in 2023. Similarly, real estate investments made by Tanzanians abroad increased from Sh7.57 billion to Sh9.28 billion during the same period, driven by purchases through the National Housing Corporation and private property developers.

To strengthen its relationship with citizens abroad and facilitate further contributions to national development, the Tanzanian government introduced a number of diaspora-focused initiatives. One such effort was the Diaspora Service Clinic held in the Comoros in August 2024, where more than 300 Tanzanians interacted with representatives from 18 government and private sector service providers.

In collaboration with the International Organization for Migration, the ministry also implemented the Diaspora Mapping Project, designed to collect accurate data on Tanzanians residing overseas. This initiative aims to guide future policy decisions and engagement strategies.

Additionally, the Diaspora Digital Hub was reviewed and upgraded to improve usability and encourage higher registration rates among Tanzanians abroad.

To maintain and expand these programs, Minister Kombo proposed a Sh340.5 billion budget for the 2025/26 fiscal year. The request marks a 29 percent increase over the previous year’s budget and is intended to support expanded outreach, digital infrastructure upgrades, and investment support programs.

This ongoing government strategy reflects Tanzania’s commitment to deepening its partnership with the diaspora, acknowledging the increasingly vital role overseas citizens play in shaping the country's economic trajectory.