Diaspora remittances hit Sh3.3 trillion as Tanzania deepens global engagement

Mr Kombo said the sharp increase in remittances, from Sh2.11 trillion in 2023/24 to Sh3.313 trillion in 2024/25.

This 57 percent rise reflects growing confidence among Tanzanians abroad in the country’s economic direction and policy environment.

“This growth reflects the importance of the diaspora in improving livelihoods, increasing investment and contributing to the expansion of the financial sector,” he told Parliament.

He added: “It also demonstrates the confidence of Tanzanians abroad in government policies and the enabling environment that has been created.”

The minister said the revised Foreign Policy (2001 Edition, 2024) places strong emphasis on diaspora engagement as a pillar of economic diplomacy, particularly in mobilising investment, skills and financial flows into the country.

To strengthen this engagement, Mr Kombo said the government has been conducting “One Stop Diaspora Service Clinics” in countries including the Netherlands, Germany, Belgium, the United Arab Emirates, Oman and Botswana, offering services such as immigration support, investment facilitation, national identification registration and financial advisory services.

He also said the Ministry has upgraded the Diaspora Digital Hub (DDH) to improve data collection and policy planning.

“By 14 May 2026, a total of 3,065 diaspora members had registered on the platform. The improvements are expected to increase participation significantly,” he said.

Mr Kombo said the government has also worked with commercial banks to introduce diaspora-specific financial products designed to ease investment and cross-border transactions.

These include TCB Nyumbani, Azania Asili Account, NBC Twiga Diaspora Banking, CRDB Tanzanite Account, Absa Mzawa Account and NMB Kwetu Account.

“These products have simplified investment procedures and made it easier for Tanzanians abroad to save, invest and send money home,” he said.

The minister further noted growing diaspora participation in collective investment schemes, with contributions to UTT-AMIS rising to Sh11.712 billion in February 2026, up from Sh7.5 billion a year earlier—an increase of about 56 per cent.

He also highlighted increased diaspora investment in the housing sector, which reached Sh4.19 billion in the 2025/26 financial year through purchases of houses and plots facilitated by the National Housing Corporation (NHC) and other developers.

“These investments are contributing to the growth of the housing sector and improving access to decent accommodation in the country,” Mr Kombo said.

On institutional reforms, the minister said the government is preparing a Diaspora Mapping exercise to establish the global distribution of Tanzanians abroad. The exercise, to be implemented over two years starting June 2026, is being developed in collaboration with the International Organisation for Migration (IOM).

He said the initiative will improve planning, targeting and service delivery for diaspora engagement.

Mr Kombo also told Parliament that the government is implementing a five-year programme to rehabilitate and develop Tanzanian diplomatic properties abroad using alternative financing models involving pension funds, banks and the private sector.

Among ongoing projects are twin commercial buildings at the Tanzanian Embassy in Nairobi and a commercial property in Kinshasa, developed in partnership with the National Social Security Fund (NSSF).

He said discussions are ongoing with CRDB Bank for similar developments in Lusaka and Bujumbura, while preparatory work is underway for projects in Abuja, Kinshasa and Addis Ababa.

“We continue to invite other stakeholders, including banks and private investors, to participate in these strategic investment opportunities,” he said.

Mr Kombo said the initiatives reflect a broader government strategy to leverage diaspora capital, financial innovation and international partnerships to accelerate economic growth and national development.