Fund Transfers from TRE The Diaspora, an Alternative Source of Development Financing

Posted by Llama 3.3 70b on 24 September 2025

Migrant Remittances to Developing Countries Represent Significant Financial Flows

Despite the various crises that the international economy has faced and their negative impact on private capital flows, the volume of remittances has remained relatively stable, even showing a growth dynamic. Remittances from Tunisians abroad have seen a significant increase between 2013 and 2023.

This trend continued in 2024, where remittances from the Tunisian diaspora reached a value of 8.2 billion TND, equivalent to approximately 6.5% of GDP, and are experiencing a significant upward trend in 2025.

Presentation of the Integration Experience

To present the experience of integrating the remittance component of Tunisians living abroad (TRE) into the 2026-2030 Five-Year Development Plan and proposed reform paths, the North Africa Office of the Economic Commission is organizing, in partnership with the Ministry of Economy and Planning, a regional workshop on remittances, investments, and their contribution to national development financing.

The event is taking place on September 24 and 25, 2025, in Tunis, and aims to analyze the capacity of the current regulatory and institutional framework to facilitate their contribution to investment and discuss reform proposals to maximize their impact as an alternative source of development financing.

Strong Increase in Remittances

Despite a difficult global economic context, remittances from Tunisians abroad have seen a significant increase of 136% between 2013 and 2023 (8,817 MDT in 2023 compared to 3,721 MDT in 2013). This trend continued in 2024, with remittances from the Tunisian diaspora reaching a value of 8.2 billion MDT, equivalent to approximately 6.5% of GDP, and are experiencing a significant upward trend in 2025, having reached nearly 5.79 billion MDT by the end of August 2025, representing an increase of approximately 8.2% compared to the same period in 2024.

The evolution of Tunisian remittances is part of a global trend. In fact, remittances worldwide have shown greater resilience than other resource flows, such as foreign direct investment (FDI) or official development assistance (ODA).

Maximizing the Benefits of Remittances

In Tunisia, stakeholders are focused on managing and promoting the diaspora and remittance flows from Tunisians abroad to ensure the effective implementation of policies and propose and support initiatives that maximize the benefits of remittances for the country's development.

The Tunisian diaspora plays a crucial role in the country's economy, particularly through remittances, which constitute an important source of foreign exchange. Remittances from Tunisians abroad have seen a constant increase, reflecting the strong ties between the diaspora and their country of origin.

In this context, income transfers, or transfers of savings and other income from work repatriated by TRE, represented 8,817 MDT in 2023 (with an annual progression of 5.4% compared to 2022), compared to 3,721 MDT in 2013, representing a significant increase of over 136% during the last decade.

These flows have continued to follow a high path, despite the successive shocks that have impacted the international economic situation in recent years. This dynamic continued during the first half of 2024, with transfers amounting to 4.5 billion dinars (including 3.7 billion in financial flows), compared to 4.3 billion dinars in the first half of 2023, representing a 3% increase.

The latest monetary and financial indicators published by the Central Bank of Tunisia (BCT) indicate that these transfers recorded a 4.6% increase by the end of December 2024 compared to the same period of the previous year. Over the entire year 2024, financial transfers from the Tunisian diaspora alone reached 8.2 billion dinars, representing approximately 6.5% of GDP.

Support from the Economic Commission

As part of the contribution to the next National Five-Year Development Plan 2026-2030, and in collaboration with the Ministry of Economy and Planning, the Economic Commission for Africa is providing technical support to integrate the remittance component, mobilization, and contribution of the diaspora as an alternative source of financing for sustainable development in Tunisia.

This contribution is being explored to identify ways and means of optimizing and channeling it towards productive investments, while setting a set of recommendations, operational reforms, and a roadmap with a plan of public actions.

Regional Workshop

The regional workshop on remittances, investments, and their contribution to national development financing will provide an opportunity to present the experiences and best practices of participating member countries in optimizing the contribution of migrant remittances, strengthening South-South cooperation, and collaboration between African countries.

The workshop will also analyze the capacity of the current regulatory and institutional framework to facilitate the contribution of remittances to investment and discuss reform proposals to maximize their impact as an alternative source of development financing.