Falling Behind in Africa

The Tanzanian diaspora still does not significantly contribute to the economic growth of Tanzania. Notably, Tanzania is not among the top 10 African countries with the highest inflow of remittances from its diaspora.

Tanzania is home to a diaspora population of 1.5 million, yet their remittances only amount to 2.5 trillion shillings.

Tanzanian diaspora, consisting of 1.5 million individuals, is not making a substantial contribution to the economic growth of Tanzania. This is evident from the fact that Tanzania does not rank among the top 10 African countries with the highest diaspora remittance inflow. In 2022, the total remittance inflow from the Tanzanian diaspora was 2.5 trillion shillings.

This situation highlights that the economic impact of the Tanzanian diaspora on their home country is limited in comparison to other African nations. Many other countries on the continent receive a significantly higher amount of remittances from their diaspora populations, which can play a crucial role in boosting their economies.

The World Bank, in its "Migration and Development Brief," disclosed that Egypt stood as the primary recipient of remittances in the African region, totaling $28.3 billion in 2022. However, this marked a 10 percent decrease from the record high of $31.5 billion in 2021.

Here is a list of the top 10 African countries with the highest diaspora remittance inflow, according to the World Bank: Rank Country Amount ($billion) 1 Egypt, Arab Republic 28.3 billion 2 Nigeria 20.1 billion 3 Morocco 11.2 billion 4 Ghana 4.7 billion 5 Kenya 4.1 billion 6 Tunisia 3.1 billion 7 Zimbabwe 3.1 billion 8 Senegal 2.5 billion 9 Algeria 1.8 billion 10 Congo, Democratic Republic 1.7 billion.

In Sub-Saharan Africa, remittances reached $53 billion in 2022, reflecting a 6.1 percent increase from the previous year, following a robust growth of 16.3 percent in 2021.

Throughout history, migration has been a widespread phenomenon. People have journeyed across the world for various reasons, with a substantial portion of these migrations driven by economic motives.

As the African diaspora continues to expand, particularly in the era of globalization and increased opportunities abroad, the remittances sent back to the continent have surged in magnitude. These are not trifling sums; they represent a significant transformation in Africa's economic stability and growth.

According to the World Bank, in the post-COVID era, remittances have gained even greater importance as a source of external financing for countries worldwide. They have proven to be resilient, and in 2022, remittance flows to low- and middle-income countries increased by 8 percent, reaching $647 billion.

Projections indicate that remittance flows to the region will rise by 1.3 percent in 2023 and by 3.7 percent in 2024.

There is potential for the Tanzanian diaspora to play a more substantial role in contributing to Tanzania's economic growth, as seen in countries like Egypt, Nigeria, and others where remittance inflows are much higher. Encouraging more remittances and investment from the Tanzanian diaspora could be a strategy to promote economic development and stability in Tanzania.

Here are the top 10 African countries with the highest diaspora remittance inflow according to the World Bank: