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Tanzanians in the diaspora remit Sh1.3 trillion in 2022: BoT
What you need to know:
- Tanzania’s diaspora remittances jumped 60.52 percent in 2022, with transactions up 20.41 percent to reach Sh1.3 trillion
Dar es Salaam. The value of diaspora remittances rose by 60.52 percent, with the volume of inflows increasing by 20.41 percent, to reach 500,849 transactions worth Sh1.3 trillion, a 2022 Bank of Tanzania (BoT) report shows.
The increase is from 415,960 transactions and Sh837.33 billion recorded in 2021, respectively.
The BoT’s latest report reveals that the volume of outflows (33 remittances) recorded a slight growth rate of 2.28 percent to 132,740 transactions in 2022, rising from 129,651 transactions. The corresponding value grew by 33.12 percent to Sh640.14 billion.
The increase, according to stakeholders who spoke to The Citizen on Tuesday, January 13, 2024, stemmed from the government’s recent year’s campaign to ensure its citizens abroad contribute more to the country’s development.
An expert in international relations from the University of Dodoma, Dr Everline Msuya, said even though she was aware of the latest (2023) World Bank report on the same, in recent years the government has stepped up sensitization for Tanzanian disporas to contribute to development through remittances.
“Despite the fact that there have been several needs that the Tanzanian diaspora has been demanding to be worked on, including dual citizenship status, the attention that the government has been paying to the group in recent years may have been contributing to these inflows,” she said.
By 2022, reports say there were a total of 1.5 million Tanzanians in the diaspora who sent home remittances for various undertakings, including investment. In 2023, while responding to a question on the number of Tanzanians living abroad and their contribution to the country’s economy.
The then Deputy Minister in the Ministry of Foreign Affairs and East African Cooperation, Mr Mbrouk Nassor Mbarouk, said the ministry had introduced a Diaspora Digital Hub System, which was to enable the gathering of Diaspora statistics.
Dr Msuya said, “The Tanzanian diaspora has been responding well by sending remittances in foreign currency through investment inflows, knowledge, and technology that are helping boost agriculture and increase the production of various goods and services.”
Despite the situation shown by BoT, an expert in ICT and former diaspora, Mr Juma Abdi said Tanzania still needed to do several things to be able to increase foreign currency through diaspora remittances like other neighbouring countries.
“This is a peaceful country; if the government completes the issue of the diaspora’s demand for dual citizenship, direct inflows will increase and change the current inconsistency,” he explained.
Mr Abdi, told The Citizen that many Tanzanians in Europe do not send remittances due to the feeling that they are not recognised in their country.
“Kenya, which has been leading in terms of remittances in this region, has only one secret, that of dual citizenship. That is why it is successful through this method, but we have the opportunity to do better if we solve existing challenges,” he said.
