Summary
Tanzania lags behind fellow EAC members Kenya and Uganda, with citizenship status, policies and the system used to record remittances being cited as the main reasons.
Dar es Salaam. Citizenship status, policies and mechanisms to recognise actual dollars sent home by Tanzanians in the Diaspora were mentioned as some of the setbacks which cause Tanzania to record low remittances from the Diaspora compared to other countries in the East African region.
Tanzania’s inbound remittances stood at about $403 million (Sh927.1 billion) in 2019, which is lower than Kenya’s $2.7 billion and Uganda’s $1.2 billion in 2019.
Speaking to The Citizen in separate interviews, the Diaspora representative and experts said there is no single hurdle to the slowdown of dollar inflows, and called for collaborative efforts to unlock the potentials.
The Tanzania Diaspora Hub (TDH) chairman, Mr Nassor Basalama, said there are still hiccups in the mechanisms that are used to record the amount of Tanzania remittances, “resulting in incorrect tabling.”
He said there is also an issue with the members of the Diaspora who use informal means to send money back home.
“That is why, as TDH, we held a meeting with some financial institutions on how to reduce rates on credits from the Diaspora, as well as increase awareness on the use of proper and ways of transactions,” he said - adding that the Hub has also been promoting investment opportunities for Tanzanians in their homeland, which would boost remittances.
“We realise that there are a lot of funds which go to family and friends.
“If we direct those into investments, it would help in appreciating Diaspora contribution to the economy,” he said.
Prof Leonard Mughor - who lives in the US, and is TDH’s treasurer - said having good investment policies and a friendly business environment would influence more Tanzanians in the Diaspora to invest their money at home.
“However, the situation is improving. The appetite is high and more people want to invest at home,” said Prof Mughor.
Economists said that the country’s Diaspora remittances have remained low compared to neighbouring countries because Tanzania has not allowed dual citizenship - unlike some other countries.
A University of Dar es Salaam (UDSM) lecturer, Dr Abel Kinyondo, said Tanzania continues to embrace outdated beliefs that if it allows dual citizenship, its people will be inveigled into causing harm to the country by other nations.
“Kenya allowed dual citizenship that has benefited the country tremendously through investments and other funds that are brought into their country,” he said.
In view of that, he said, it was high time that Tanzania reached the point where other countries are currently using to allow residence access that gives an individual all the rights as a citizen.
According to him, if Tanzania allowed its citizens to access residence permits, they would be bringing more money back home. He said Diaspora remittances are an important part of the GDP which brings back to the country foreign currency and helps to fill the investments gap.
“The country can also use its own people to invest in major projects if either dual citizenship or residence permits are allowed,” he said.
For his part, an independent financial analyst, Christopher Makombe, said Kenya became a capitalist country a long time ago - unlike Tanzania and,therefore the number of its citizens in the Diaspora is huge compared to Tanzania’s.
“At present, though, we don’t have the exact data. But, there are more Kenyans in the Diaspora with good jobs and salaries - unlike Tanzania. Therefore, automatically, the money they bring home is also in large sums,” he said.
Further, he noted that Kenya reviewed its constitution to allow dual citizenship that has allowed its citizens to invest back home and send money because they know they are allowed to own their assets - unlike in Tanzania.
He said the government should encourage more Tanzanians to take advantage of overseas employment opportunities in order to increase foreign remittances which will further help in improving the economy and stability of the Tanzania shilling
“There is a need to review the law and in that way the remittances will increase and help grow the economy,” he said.
The chief executive officer of NALA - an application which allows the Diaspora in the UK to send money to Tanzania, Kenya, Uganda and Ghana instantly - Mr Benjamin Fernandes, said most of his customers are Kenyans.
Mr Fernandes agreed that the decision not to allow dual nationality is one of the things pulling back Diaspora remittances into Tanzania.
Same for the TDH’s government relations officer, Mr Norman Jasson, who said that there is also a big challenge when it comes to opening a bank account for those Tanzanians who have changed their citizenship to a foreign one - hence making it hard to access the financial services.
Dar es Salaam. Citizenship status, policies and mechanisms to recognise actual dollars sent home by Tanzanians in the Diaspora were mentioned as some of the setbacks which cause Tanzania to record low remittances from the Diaspora compared to other countries in the East African region.
Tanzania’s inbound remittances stood at about $403 million (Sh927.1 billion) in 2019, which is lower than Kenya’s $2.7 billion and Uganda’s $1.2 billion in 2019.
Speaking to The Citizen in separate interviews, the Diaspora representative and experts said there is no single hurdle to the slowdown of dollar inflows, and called for collaborative efforts to unlock the potentials.
The Tanzania Diaspora Hub (TDH) chairman, Mr Nassor Basalama, said there are still hiccups in the mechanisms that are used to record the amount of Tanzania remittances, “resulting in incorrect tabling.”
He said there is also an issue with the members of the Diaspora who use informal means to send money back home.
“That is why, as TDH, we held a meeting with some financial institutions on how to reduce rates on credits from the Diaspora, as well as increase awareness on the use of proper and ways of transactions,” he said - adding that the Hub has also been promoting investment opportunities for Tanzanians in their homeland, which would boost remittances.
“We realise that there are a lot of funds which go to family and friends.
“If we direct those into investments, it would help in appreciating Diaspora contribution to the economy,” he said.
Prof Leonard Mughor - who lives in the US, and is TDH’s treasurer - said having good investment policies and a friendly business environment would influence more Tanzanians in the Diaspora to invest their money at home.
“However, the situation is improving. The appetite is high and more people want to invest at home,” said Prof Mughor.
Economists said that the country’s Diaspora remittances have remained low compared to neighbouring countries because Tanzania has not allowed dual citizenship - unlike some other countries.
A University of Dar es Salaam (UDSM) lecturer, Dr Abel Kinyondo, said Tanzania continues to embrace outdated beliefs that if it allows dual citizenship, its people will be inveigled into causing harm to the country by other nations.
“Kenya allowed dual citizenship that has benefited the country tremendously through investments and other funds that are brought into their country,” he said.
In view of that, he said, it was high time that Tanzania reached the point where other countries are currently using to allow residence access that gives an individual all the rights as a citizen.
According to him, if Tanzania allowed its citizens to access residence permits, they would be bringing more money back home. He said Diaspora remittances are an important part of the GDP which brings back to the country foreign currency and helps to fill the investments gap.
“The country can also use its own people to invest in major projects if either dual citizenship or residence permits are allowed,” he said.
For his part, an independent financial analyst, Christopher Makombe, said Kenya became a capitalist country a long time ago - unlike Tanzania and,therefore the number of its citizens in the Diaspora is huge compared to Tanzania’s.
“At present, though, we don’t have the exact data. But, there are more Kenyans in the Diaspora with good jobs and salaries - unlike Tanzania. Therefore, automatically, the money they bring home is also in large sums,” he said.
Further, he noted that Kenya reviewed its constitution to allow dual citizenship that has allowed its citizens to invest back home and send money because they know they are allowed to own their assets - unlike in Tanzania.
He said the government should encourage more Tanzanians to take advantage of overseas employment opportunities in order to increase foreign remittances which will further help in improving the economy and stability of the Tanzania shilling
“There is a need to review the law and in that way the remittances will increase and help grow the economy,” he said.
The chief executive officer of NALA - an application which allows the Diaspora in the UK to send money to Tanzania, Kenya, Uganda and Ghana instantly - Mr Benjamin Fernandes, said most of his customers are Kenyans.
Mr Fernandes agreed that the decision not to allow dual nationality is one of the things pulling back Diaspora remittances into Tanzania.
Same for the TDH’s government relations officer, Mr Norman Jasson, who said that there is also a big challenge when it comes to opening a bank account for those Tanzanians who have changed their citizenship to a foreign one - hence making it hard to access the financial services.
https://www.thecitizen.co.tz/tanzania/news/why-tanzania-is-behind-in-east-africa-remittances-3655178
Hio kuletwa WorldRemit nchini ilikuwa sawa na kupigana kwenye 3rd world war au kama vile anapelekwa jasusi nchini Bado mifumo yetu ni ya kukandamiza maendeleo ya kweli nchini iliokuwa based kwenye roho mbaya. Kama sio PBZ Bank kujitosa na kupigana mpaka leo bado WorldRemit ingelikuwa haijaingia nchini. Sijui inakuwa kwa faida ya nani inawekwa hii mifumo mibaya ya uchumi! Eti ukitaka kufunguwa akaunti benki kama wewe huna cheti cha kusafiria cha Tanzania huwezi, japokuwa mambo yako yote yapo hapa nyumbani. Ni kutokuelewa mambo vizuri na kutokufuata upepo wa uchumi bora duniani unapiga vipi.Eti baada ya kutoa dual citizenship wanataka kuwapa watu PERMITS, kwani wao ni refugees kwenye nchi yao? Refugees wakija hapa nyumbani kutaka makaazi ndio wanapewa permits, lakini mtu kazaliwa hapa (mzawa) lakini yupo nje anachuma na mwishowe arudi, wanataka kumpa permit. Anyway, tutakuwa nyuma katika remittances mpaka tuondokane na hizi fikra za kupinga maendeleo yetu wenyewe tulizokuwa nazo!!!
ReplyDeleteNdugu Anonymous,
DeleteNinakuunga mkono kwa yote uliyoyaeleza. Sisi Watanzania ni kama watu tuliologwa. Juzi kupitia barua iliyosambazwa kutoka ubalozini Canada, eti Balozi wa Tanzania nchini Canada anawataka Wana-Diaspora watoe maoni kuhusu kufungua accounts kwenye benki za nyumbani. Jamani, hivyo hili ni suala lakutaka maoni ya Wana-Diaspora? Watu moja kwa moja wanataka waruhusiwe kufungua accounts kwenye mabenki ya nyumbani - jambo ambalo halipo. Wana-Diaspora wamefika hata kumuandikia Rais kupitia huyu huyu Balozi wakimtaka aondoe nuksi hii ya kuwazuwilia watu wasiweze kufungua accounts kwenye benki za kwao nyumbani. Leo Balozi anataka ushauri. Ushauri gani tena zaidi ya barua uliyompelekea Rais wewe mwenyewe??????? This is no-brainer, - hili jambo halitaki hata kufikiriwa. Waruhusini watu wafunguwe accounts kwenye benki za kwao ili wakiwa na miradi yao nyumbani au wakienda kutembea wasipate shida ya kusafiri na pesa tele cash. Halafu eti tunastaajabu kwanini sisi ni wa mwisho katika East Africa kwa kupokea remittances! Hii ni sawa na kumfungia mbuzi kiguzoni na baadae unauliza huyu mbuzi mbona hanenepi? Atanenepa vipi wakati majani hapati? Jamani, tugeukeni au siku zote tutabakia kuwa wa mwisho katika kila kitu!
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