Assessing How Far Remittances Improve Household Welfare in Zanzibar: The Case of Wete and Chake-Chake Districts in Pemba (Journal of the Geographical Association of Tanzania)

Summary

• Globally, remittances grew by 10% to US$689 billion, with nearly three-quarters flowing to developing countries.p.2
• Tanzania receives approximately US$757 million annually in remittance inflows.p.2
• The UAE accounts for about 43% of remittances to Pemba, making it the largest source country.p.7
• Overall household welfare levels shifted from 77% at a low level before remittances to 82% at a high level post-remittances.p.1
• High housing ownership rates among surveyed households expanded from 29% before remittances to 85% post-remittances.p.8
• High food security levels increased from 10% before receiving remittances to 83% post-remittances.p.11
• The proportion of households accessing high-cost healthcare services increased from 28% to 90% following remittance receipt.p.10

Key insights

1. Remittances account for over 15% of GDP in African countries such as Somalia and South Sudan.p.2
2. The research surveyed 300 remittance-receiving households and 15 key informants across Wete and Chake-Chake districts.p.1
3. The US and Canada contribute a combined 23% share of remittances to Pemba due to higher diaspora income levels.p.7
4. Attaining a high educational level demonstrated the highest effect size among indicators with a Cohen's d of 2.32.p.13
5. Households accessing high-level healthcare institutions increased from 25% before remittances to 75% post-remittances.p.11
6. The proportion of household members with low-level education decreased from 66% before remittances to 17% post-remittances.p.10
7. Remittances allow recipient families to upgrade from temporary mud houses to permanent housing structures.p.9