The Commercial Bank of Ethiopia (CBE) has estimated that fully channelled diaspora funds could generate more than $35 billion annually, underlining a significant untapped source of foreign exchange.

Speaking in Pretoria, South Africa, CBE president Abe Sano said: “Currently, only 22% of diaspora remittances reach Ethiopia through legal channels, amounting to $7.2 billion, while the remaining 78% flows through informal networks.” He urged Ethiopians abroad, including second-generation diaspora members, to increase their contributions through formal financial channels and investment initiatives, emphasising that the bank is prepared to provide the necessary support and tailored products.

CBE has begun wide-ranging reforms, including plans to mobilise 50 billion birr from the diaspora community in the 2025/26 Ethiopian financial year. Delil Kedir, Ethiopia’s ambassador to South Africa, highlighted the bank’s role in promoting formal remittance flows.

Nawawi Musa, vice-president of the Ethiopian Community Association in South Africa, praised CBE’s engagement, confirming the diaspora’s readiness to participate in investment and remittance schemes.

The National Bank of Ethiopia (NBE) has issued warnings against unlicensed money transfer operators recently, requiring that cross-border remittances be conducted through regulated institutions. The measure aims to curb illicit activity, including money laundering, and safeguard the financial system’s integrity.