Tanzania Crossborder Remittance Policy Diagnostic

Remittances are a vital source of financial inflow for many developing countries, including Tanzania, where they help boost household incomes and play a pivotal role in poverty alleviation and local development. Despite their importance, Tanzania records notably lower remittance inflows compared to its East African neighbors, capturing only 0.9 percent of its gross domestic product (GDP) from these transfers. This policy diagnostic seeks to analyze the barriers and opportunities within Tanzania’s remittance landscape, aiming to enhance the effectiveness and inclusivity of remittance flows into the country.

The diagnostic serves as a foundation for redefining Tanzania’s remittance framework. By addressing these challenges and implementing the recommended reforms, Tanzania can better harness the economic potential of its diaspora, positioning remittances as a key driver of national development.