Dodoma. Tanzanians living abroad sent home over Sh2.1 trillion in remittances during the first half of the current financial year 2024, highlighting their growing contribution to the national economy, the government revealed on Wednesday.
Presenting the 2025/26 budget estimates for the Ministry of Foreign Affairs and East African Cooperation, Minister Mahmoud Thabit Kombo said Bank of Tanzania (BoT) statistics show that from July to December 2024 alone, remittances reached Sh2.12 trillion, up from Sh2.05 trillion during the same period in 2023.
“These funds significantly improve household welfare, support investments and stimulate growth in the financial sector,” Mr Kombo told Parliament.
He noted that Tanzanians abroad have increasingly taken part in development initiatives, including investing Sh7.5 billion in the UTT-AMIS Collective Investment Scheme in 2024—up from Sh6.4 billion in 2023.
In the real estate sector, diaspora investments rose from Sh7.57 billion in 2023 to Sh9.28 billion in 2024, largely through purchases of houses and plots from the National Housing Corporation and private developers.
Mr Kombo said the government recognises the diaspora’s role in national development and has taken steps to strengthen engagement through various platforms and outreach programmes. In August 2024, the ministry coordinated a Diaspora Service Clinic in the Comoros, connecting more than 300 Tanzanians abroad with 18 service providers from government and private sectors.
The government has also partnered with the International Organisation for Migration (IOM) to launch a diaspora mapping project. Once completed, it will provide comprehensive data on the global distribution of Tanzanians abroad, enabling targeted engagement.
In a related effort, the ministry reviewed the Diaspora Digital Hub between July and December 2024 to make it more user-friendly and encourage more registrations.
To support these activities, Mr Kombo requested Parliament to approve a Sh340.5 billion budget for the 2025/26 financial year, a 29 percent increase from the Sh241.1 billion allocated in 2024/25.
“This budget will enhance our diplomatic reach and deepen diaspora involvement in the country’s development agenda,” he said.
