Tanzania targets $1.5 billion in diaspora remittances by 2028

Dar es Salaam. The government is stepping up efforts to engage one million diaspora workers by 2028 with the goal of doubling the annual contributions of Tanzanians abroad to $1.5 billion (Sh3.75 trillion).

The target, announced at a national labour migration conference in Dar es Salaam on Wednesday, November 6 underscores the government’s strategy to unlock the economic potential of its citizens living and working overseas.

Currently, the diaspora remittance level is estimated to stand at about $700 million (Sh1.5 trillion), according to the World Bank.

The minister of State, Prime Minister’s Office [Labour, Youth, Employment, and the Disabled], Mr Ridhiwani Kikwete, shared the plans with the conference participants.

He noted that the government hopes to facilitate the immigration of Tanzanian workers overseas to one million from the current 500,000 in the next four years.

“With their significant contributions, the diaspora is a valuable resource for Tanzania’s development, and we’re committed to creating conducive, legal pathways for Tanzanians seeking work abroad,” he said in a speech read on his behalf by the director of employment services in the Prime Minister’s Office [Labour, Youth, Employment, and the Disabled], Mr Joseph Nganga.

The government’s strategy includes improved services for Tanzanians living overseas, such as access to financial services, participation in investment opportunities, and enrolment in social security and health insurance schemes.

According to the ministry of Foreign Affairs and East African Cooperation’s 2024/25 budget, plans are also underway to digitise the identification and registration of Tanzanian diaspora members, ensuring accurate data for effective policy decisions.

A new financial platform, Kuda, has been licensed by the Bank of Tanzania (BoT) as a Payment Service Provider, and officials hope it will further increase remittances to Tanzania by offering diaspora members a secure, convenient way to send funds home.

According to the BoT, remittances from Tanzanians abroad totalled Sh1.5 trillion in 2021.

Yet, recent data from the World Bank’s 2024 report on global migration trends (KNOMAD) indicates Tanzania still lags behind other African nations such as Nigeria and Kenya in remittance volumes.

Nigeria and Kenya lead Africa in receiving funds from their diasporas, with Nigeria’s diaspora remitting $19.5 billion in 2023, the highest amount on the continent.

Kenya, meanwhile, received $4.2 billion (Sh11.42 trillion) that same year. Comparatively, Tanzania saw an estimated $700 million (Sh1.9 trillion) in remittances in 2023.

The director of Diaspora and Opportunities from the ministry of Foreign Affairs, Mr Salvatory Mbilinyi, advised Tanzanians seeking employment abroad to follow legal processes, warning of risks associated with informal migration.

He noted that some Tanzanians who migrate overseas without following the proper procedures often encounter hardships and are unable to access embassy assistance.

“Tanzanians need to recognise that living abroad is not always a ticket to wealth. Many go with high hopes, only to find themselves struggling and, in some cases, returning with less than they had before,” Mr Mbilinyi said.

Representative of the Secretariat on Combating Human Trafficking, Mr Celestine Makoba, echoed the sentiments, sharing recent cases where Tanzanian women were rescued after encountering exploitation abroad.

In one instance, 17 young women were rescued from Kurdistan after facing severe hardships following misleading job offers.

“When they arrive and face challenges, that’s when they remember the government. In April, we managed to rescue 17 young women who had been taken to Kurdistan with promises of job offers, but the situation turned out to be different,” he said.

“What’s worse is that we don’t even have an embassy there, yet we were still able to rescue them. The difficulty we face is that many who leave through illegal routes often do not cooperate in providing evidence,” he said.