Unlocking Tanzania’s Diaspora Potential: The Path to Economic Prosperity Through Engagements

By Adonis Byemelwa

Tanzania’s diaspora is a critical asset for the nation, contributing significantly to its economic landscape through remittances, investment, and knowledge transfer. However, the government’s inconsistent engagement with its diaspora and persistent cabinet reshuffles have impeded any potential growth this community could foster.

The shifting landscape of leadership, particularly in the realm of foreign affairs, has not only created instability but has also raised concerns about the safety and trustworthiness of governmental initiatives aimed at the diaspora. This reality poses a risk to remittance flows, which are vital for the livelihoods of countless Tanzanians.

In recent years, Tanzania has witnessed a whirlwind of cabinet changes, notably within its foreign affairs sector. The frequent removals and reinstatements of key figures, such as the former Foreign Affairs and East Africa Cooperation Minister Stargomen Tax Bamwenda, have led to a chaotic atmosphere that hampers the establishment of a coherent foreign policy.

The government’s inconsistent stance was exemplified by the abrupt dismissal of Ambassador Liberatha Mulamula, only to have Bamwenda reinstated shortly thereafter. This was followed by the appointment and subsequent removal of January Makamba, illustrating a lack of stability in leadership that is detrimental to Tanzania’s diplomatic mission.

The high turnover in such critical positions not only disrupts continuity but also paralyzes the ability to implement long-term foreign policy initiatives. Such instability is not just a bureaucratic issue; it directly affects the diaspora’s perception of the Tanzanian government and its commitment to fostering relationships with its citizens abroad.

As noted by international relations experts, effective diplomatic engagement is contingent upon stable leadership and clear policy direction. The absence of these elements raises doubts about the government’s ability to protect and promote the interests of its diaspora, ultimately impacting remittance flows, which are crucial for the nation’s economic health.

The untimely passing of Ambassador Augustine Mahiga further exacerbates these challenges. Mahiga was not merely a diplomat; he was a bridge between Tanzania and its diaspora, embodying a commitment to fostering inclusive and constructive relationships. His demise represents a significant loss for the Tanzanian government and its efforts to engage its diaspora. In a time when the nation requires stable leadership and proactive engagement, the absence of such a key figure sends a disheartening message to Tanzanians abroad.

Compounding these issues are ongoing reports of abductions and human rights violations that have surfaced in Tanzania. Such acts create an atmosphere of fear and uncertainty, dissuading members of the diaspora from engaging with their homeland or contributing financially.

 International relations theorists emphasize the role of trust in fostering diaspora engagement; when the safety of individuals is at risk, the willingness to invest or send remittances diminishes. Scholars like Dr. Thomas Faist have pointed out that diasporas are more likely to support their home countries when they feel a sense of security and trust in the political environment. The fear of persecution or abduction can lead to a withdrawal of support, further straining the country’s economy.

Tanzania’s government has historically overlooked the immense potential of its diaspora in driving economic growth through remittances and investments. The lack of structured policies to engage this community has resulted in missed opportunities.

Other countries, such as India, have successfully harnessed the power of their diasporas by implementing policies that encourage investment and promote dual citizenship. India’s proactive measures, including lifetime visas for its citizens abroad, serve as a model for Tanzania, which could benefit from establishing clear frameworks to attract diaspora investment and participation.

Moreover, the COVID-19 pandemic has exacerbated the vulnerabilities in remittance flows. While some research indicates that diasporans continued to send funds home despite the global crisis, the overall economic downturn has led to a decline in remittance flows, with the World Bank projecting a significant drop in 2020.

This decline poses a critical challenge for Tanzania, where remittances account for a substantial portion of household income. The government’s inability to provide reliable data on diaspora contributions further complicates efforts to gauge the impact of these changes on the economy.

Studies have demonstrated that remittances play a vital role in poverty alleviation and economic stability. Unlike foreign aid, which is often viewed with skepticism, remittances provide direct support to families, allowing them to meet basic needs and invest in education and health. However, the declining remittance flows in the wake of the pandemic and the political instability at home have led to a situation where many families may struggle to maintain their livelihoods. This creates a cycle of dependency that could have long-lasting implications for the country’s development.

Besides, the existing literature on diaspora engagement highlights the importance of building trust and social networks between governments and their expatriates. International relations theorists such as Dr. Nina Glick Schiller stress that fostering strong ties with the diaspora can lead to enhanced economic growth and political stability. However, when government actions, such as arbitrary arrests or abductions, create an environment of fear, it becomes increasingly challenging for the diaspora to engage positively with their homeland.

The implications of this political instability and the potential decline in remittances extend beyond mere economic numbers. They touch upon the very fabric of Tanzanian society, as families depend on these funds for their day-to-day survival. In rural areas, where access to financial resources is often limited, remittances serve as a lifeline. When these flows decrease, the consequences ripple through communities, impacting education, healthcare, and overall quality of life.

As Tanzania grapples with these complex challenges, it must recognize the necessity of a stable and inclusive foreign policy framework that actively engages its diaspora. To achieve this, the government must prioritize transparency and accountability in its diplomatic relations, allowing the diaspora to feel secure in their investments and contributions to their homeland. Building trust with the diaspora will require sustained efforts to protect their rights and ensure their safety, particularly in light of recent reports of abductions and other human rights violations.

Tanzania stands at a critical juncture where the government’s actions can either stymie or stimulate economic development through diaspora engagement. The persistent cabinet reshuffles, the loss of key diplomatic figures like Ambassador Mahiga, and the rising concerns over personal safety are urgent issues that require immediate attention. For the diaspora to feel confident in their contributions, the Tanzanian government must create a stable, secure, and inclusive environment that fosters trust and encourages engagement.

According to a 2022 report from the Bank of Tanzania (BoT), the value of diaspora remittances saw a remarkable increase of 60.52%, with transaction volumes rising by 20.41%. This surge translated to a total of 500,849 transactions worth a staggering 1.3 trillion shillings, up from 415,960 transactions valued at 837.33 billion shillings in 2021. The report also indicated a modest growth in outbound remittances, with a 2.28% increase, resulting in 132,740 transactions in 2022 compared to 129,651 the previous year. The corresponding value of outflows climbed by 33.12%, reaching 640.14 billion shillings.

While these figures signify a positive trend for Tanzania, they also highlight a significant disparity when compared to neighboring countries. For instance, Kenya attracted an impressive $2.72 billion in remittances, while Uganda secured $1.24 billion during the same period. This contrast underscores a critical missed opportunity for Tanzania to capitalize on the potential of its diaspora.

To bridge this gap, Tanzania must prioritize key areas for improvement. Establishing clear policies to actively engage the diaspora, fostering greater transparency in financial transactions, and creating attractive incentives for investment are essential steps. By learning from the successes of its neighbors, Tanzania can unlock the full potential of diaspora remittances, driving sustainable economic growth and development.

If Tanzania can effectively navigate these challenges, it has the potential to unlock the immense resources and capabilities of its diaspora, paving the way for sustainable economic growth and development. The government’s commitment to fostering meaningful relationships with its diaspora will be essential in shaping a prosperous Tanzanian society.

By harnessing the power of remittances and investing in its expatriates, Tanzania can transform its economy and secure a brighter future for its citizens at home and abroad. The time to act is now—only through proactive engagement can Tanzania realize the full potential of its diaspora and set a course for long-term prosperity.