Diaspora sends Sh2.11 trillion home in six months


By The Respondent Reporter - Dodoma

Tanzanians living abroad sent a total of Sh2.11 trillion to the country between July and December 2024, according to the Bank of Tanzania (BoT). 

The announcement was made yesterday by the Minister for Foreign Affairs and East African Cooperation, Ambassador Mahmoud Thabit Kombo, while presenting his ministry’s 2025/26 budget in Parliament. 

The minister said the money sent by the diaspora plays a big role in supporting the economy, especially in development projects and the real estate sector. 

“Tanzanians abroad are contributing to the growth of the financial and housing sectors through investments and property purchases,” said Ambassador Kombo.

The ministry is requesting Sh340.5 billion for the 2025/26 financial year. 

Out of this, Sh294.9 billion is set aside for regular expenses. They include Sh273.66 billion for operational costs and Sh21.3 billion for salaries of staff at the ministry headquarters and Tanzanian embassies abroad. 

Ambassador Kombo said that 70 percent of the total budget will go to the embassies. These funds, amounting to Sh23.8 billion, will support diplomatic operations and activities overseas.

The minister outlined key focus areas for the coming year, including promoting Tanzania as a global destination for international conferences, strengthening economic diplomacy to attract investors, improving marketing strategies, increasing revenue-generating events at diplomatic missions, and partnering with the private sector and international organizations. 

He also said that in 2024, Tanzanians abroad invested Sh7.5 billion in the UTT-AMIS joint investment fund, up from Sh6.4 billion in 2023. 

Additionally, many have purchased homes and land through both the National Housing Corporation and private developers. 

The investment increased further to Sh9.2 billion by the end of 2024.

According to the minister, Tanzania has strengthened ties with partner countries through agreements and access to funding, knowledge, and technology. 

Regionally, the country is benefiting from programs under the East African Community (EAC) and SADC, while also playing a key role in global discussions on climate change and clean energy. 

However, he warned that some regional member states are not fulfilling their obligations, such as paying contributions on time. 

This affects regional programs and Tanzania’s participation. He called for reforms within regional blocs and encouraged the private sector to take full advantage of economic diplomacy opportunities.

Several Members of Parliament raised concerns about the poor condition of Tanzania’s embassies. 

Joseph Mkundi (Ukerewe) said some ambassadors are not performing their duties and need to be given performance targets. 

“Many of our diplomatic buildings are old and unattractive. They no longer reflect the dignity of our nation,” said Mkundi. 

Grace Tendega (Special Seats) supported the call, saying 105 embassy buildings need urgent renovation. 

She also proposed placing banners at embassies to promote Afcon 2027, which Tanzania is co-hosting.

Deputy Minister Cosato Chumi agreed with MPs, supporting the idea of introducing performance evaluations for ambassadors and using embassies for marketing the country ahead of Afcon 2027. 

Reading the committee report, former minister Ambassador Liberata Mulamula said many plans are delayed due to limited budget releases. 

She cited the incomplete construction of conference halls at the Dr. Salim Ahmed Salim Centre as an example.

The Ministry of Foreign Affairs sees the diaspora, diplomacy, and international cooperation as key pillars for Tanzania’s development. However, MPs and government leaders agree that more funding, accountability, and visibility are needed to achieve greater impact.

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