As the Ethiopian New Year beckons, an infectious festive atmosphere is pulsating through the capital. Shops are teeming with holiday shoppers; beauty salons are packed with customers, and most ATMs feature long queues. As with any other holiday, the festive spirit comes with a hefty price tag requiring occasional financial support.
With a diaspora population estimated to be at least 3 million, many households look to loved ones abroad for some holiday financial offerings to help with holiday expenses.
Following the shift to a market-based foreign exchange two months ago, this holiday’s remittance flows are more likely than ever to pass through formal banking institutions as the difference to parallel markets dwindles. Cognizant of the potential for increased flows, Ethiopia’s commercial banks are offering discounts, bonuses, and incentives as they compete for a slice of the market.
Shega has compiled a short list of available offerings from Ethiopia’s banks that are navigating innovative alternatives this holiday season. So, whether you’re sending Euros, Dollars, Riyals, or any other currency, here are six options that may help with the decision.
CashGo
Commercial Bank of Ethiopia, Dashen Bank, and Bank of Abyssinia are all providing a 16% bonus on remittances sent through CashGo.
The app enables users to remit funds using their Master Card, Visa Card, or American Express Card via their mobile phones. This card-based remittance is instant, and the receiver gets credited in Birr to their bank account.
CashGo is promoting its rate as ‘better than black market rates,’ and with the current exchange rate plus an added bonus, 1 USD is being exchanged for 126 birr on the platform. As the holidays approach, these offers are expected to become even more competitive. The CashGo app was updated a month ago with new features tailored to the floated birr.
EthioDirect
Launched last year by the Commercial Bank of Ethiopia, EthioDirect is a user-friendly mobile app designed for international money transfers, working in a similar way to CashGo. When you send money through EthioDirect, it offers a generous 16% bonus on your remittance. While initially launched with remittance services from nine countries, it has rapidly expanded its reach in the year since its launch.
FastPay
The Cooperative Bank of Oromia, in partnership with FastPay, is offering a generous exchange rate of 120 per USD, a nearly 15% bonus on their current exchange rate. FastPay simplifies the process of sending money to friends and family in Ethiopia. Customers can make transactions anytime and enjoy instant deposits to their recipients’ accounts, all in a secure and hassle-free manner. The US-based company allows for direct deposits with nearly 21 local commercial banks.
Telebirr Remit
The newly availed Telebirr Remit has also joined the remittance game, offering a 5% bonus on top of loyalty rewards and gifts. Telebirr Remit is built into the Telebirr platform and allows Ethiopian expats to send money from their Visa card directly to mobile number wallets in Ethiopia. Leveraging the expansive reach of the mobile money service with around 40 million users, Telebirr Remit is poised to become a major player in the remittance industry.
EthioDash
EthioDash is a user-friendly app that makes international money transfers quick and affordable. With a competitive pricing structure and a growing network of partner banks in Ethiopia, it’s a convenient option for sending money home. The four-year-old company primarily provides its services to the diaspora located in the United States of America with aspirations of imminent expansions. New users can enjoy a free first transfer using the promo code “FREE24”, while its cash pick-up option allows for direct transfers to partner banks in Ethiopia.
International Money Transfer
This year, banks are outdoing each other with alluring deals, competitive exchange rates, negotiation options, and exciting gifts. The holiday offerings are not limited to remittance apps, as payments made through international payment service providers like Western Union, Dahabshiil, Swift, and Ria also hold incentives from Ethiopian banks. Amhara Bank has taken the lead with a 17% bonus offering that lasts until October.
Zemen Bank is doubling its annual saving interest rate to 14% for those who deposit foreign currency. Awash Bank, Ethiopia’s biggest private bank, is also echoing a similar approach and has a buying rate of 115 birr for the dollar as of publishing.
The energetic activity of Ethiopia’s banks is partly inspired by a push from the central bank, which is attempting to simplify foreign exchange transactions.
Last week, the National Bank of Ethiopia (NBE) hosted a successful remittance awareness exhibition at the Skylight Hotel. As part of its efforts to attract foreign currency, the NBE has also launched its flagship awareness initiative, Debo, in alignment with the new Foreign Exchange Directive.
Debo aims to educate the Ethiopian diaspora about the benefits of using Foreign Currency Accounts (FCY) and legal remittance systems. By providing clear guidelines and fostering an understanding of these reforms, Debo seeks to strengthen Ethiopia’s financial sector and enhance the use of legal channels. Remittance has accounted for a significant chunk of Ethiopia’s foreign currency inflows, with nearly 6 billion dollars remitted as of July this year. The event attracted over 30 banks, fintech firms, and other financial institutions, showcasing a variety of innovative remittance solutions.
The National Bank also unveiled the Unite.et platform as part of an effort to simplify access to financial services for the Ethiopian diaspora. It is integrated with 30 commercial banks and facilitates nearly all services that would be provided through a physical visit.
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