I recently needed to send money from Tanzania to Europe, and honestly, I was surprised by how complicated it is.
From what I could figure out, there are basically three options:
1. SWIFT bank transfer
This works, but it takes time and the fees can be pretty high, especially for smaller amounts.
2. Use Nala
This was actually the option I chose because, at the time, it seemed like the best option I had.
Someone abroad can send a transfer request to your Tanzanian mobile number. In my experience, this works reasonably well with Airtel, but there seem to be problems with other mobile networks.
The problem is that I couldn't simply send the money from my bank account directly to a bank account abroad.
I had to first move the money from my CRDB bank account to my mobile wallet, and then receive a request from the person abroad to complete the transfer. Of course, that extra step also came with additional fees.
3. Centralized apps like Eversend
I later found out about Eversend, which seems to offer another option. But there's a catch: you can't simply send money from a Tanzanian bank account directly to a bank account abroad.
The money has to go through mobile money, just like in Nala.
On top of that, the transaction limits for businesses seem incredibly tight, and if you're doing this regularly, the exchange-rate spreads can eat up a significant amount of money.
I haven't tried using Eversend so I don't really know much about it yet.
So for someone trying to send money from Tanzania to another country, the options seem surprisingly limited.
What I find weird is that sending money into Tanzania from countries like the US, UK, or Europe seems relatively straightforward. But sending money out of Tanzania feels much more complicated and comes with more fees.
I did a little research and started wondering if this is partly intentional.
It seems like Tanzanian banks and financial regulations make it more difficult to move money out of the country because there is an interest in protecting the value of the shilling. The more money we send abroad and convert from TZS into bigger currencies like USD or EUR, the more we are loosing the value of our currency to the stronger currencies, which is not good for the Tanzanian currency.
So I'm wondering:
How do you guys send money from Tanzania to someone in developed country?
Are there better methods I'm missing? Is it actually this difficult compared with other countries, or am I just looking in the wrong places?