Commercial Bank of Ethiopia Launches 50 Billion Birr Loan Package for Diaspora Community

The state-owned Commercial Bank of Ethiopia (CBE) has unveiled a new 50 billion Birr loan package tailored for members of the Ethiopian diaspora, in a bid to boost their participation in investment and asset acquisition back home. 

Abe Sano, CEO of the Bank, announced the initiative during his visit to Dubai and the United Arab Emirates, where he met with Ethiopian diaspora community members. According to a statement by the bank, the loan facility is intended to finance investment projects, home purchases, and vehicle acquisitions.

The move forms part of the bank’s broader reform agenda aimed at mobilizing diaspora resources and strengthening ties with Ethiopians abroad, who remain a critical source of foreign exchange for the country. Remittances from the diaspora contribute billions of dollars annually to Ethiopia’s economy, and the government has consistently sought ways to channel these flows into productive investments.

Elaborating on the specifics, Mr. Nuri Husien, Vice President of CBE, detailed the attractive terms designed for diaspora members, noting that diaspora clients will benefit from flexible repayment periods, comparatively lower interest rates, incentive-based savings schemes, and streamlined money transfer services. According to the vice president, the measures are designed to address longstanding concerns about limited financial access for diaspora customers. 

The Diaspora targeted offer comes a year after the National Bank of Ethiopia (NBE) launched the DEBO initiative.  As part of the DEBO initiative, banks have allocated 100 billion birr to encourage members of the diaspora to invest in Ethiopia, offering competitive exchange rates to motivate them to use formal banking channels rather than black-market alternatives. These banking products include mortgage loans, vehicle loans, and SME loans specifically designed for remittance senders.

The central bank has also recently intensified its crackdown on illicit financial flows as part of broader efforts to formalize the sector, including regulating cross-border fund movements to mitigate risks of money laundering and terrorist financing.