- Ethiopia receives around $380 million in remittances annually
- WorldRemit’s entry into Ethiopia will give the unbanked population better access to their funds
- The Commercial Bank of Ethiopia is not the brand’s first partner in the country
WorldRemit inked a deal with the Commercial Bank of Ethiopia (CBE) to launch its money transfer service in the African nation, a move that has been in WorldRemit’s pipeline for a long time. The international money transfer brand has several partnerships in Africa to fulfil its expansion goals. Adding CBE to the list is a major development, according to observers as WorldRemit is the first of its kind in the country. With the commercial bank’s reach, WorldRemit is poised to take Ethiopia’s remittance market by storm. The bank currently has over 20 million accounts under its belt. It also has 1,300 cash pick-up centres.
WorldRemit is a leader in offering cheap overseas transfer rates making it the perfect solution for Ethiopia’s budget conscious consumers. The service allows app users to transfer money internationally without worrying when the funds will arrive at their destination or if the money they sent is secure. WorldRemit’s move to strengthen its foothold in Ethiopia is a wise decision, according to observers, since the country receives millions of dollars in remittances per year. Based on 2018 numbers, the Ethiopian diaspora is two million strong.
According to data gathered by the World Bank, Ethiopia receives an estimated $380 million in remittances per annum. While the official average between the 1990s and 2018 is only in the millions, the country reportedly received billions in 2015 through unregulated channels.
It is noted by Ethiopian authorities that much of the money sent by migrants go through informal channels because of the expensive rates charged by banks. Authorities added that the $3 billion estimate mentioned in their report is likely the real amount that the country receives from abroad per year. Funds sent to Ethiopian families are used to pay for basic needs such as food, clothing, shelter and education.
WorldRemit’s East and Central Africa head Sharon Kinyanjui says that the presence of the brand will help the country’s unbanked population. Kinyanjui adds that it will make it easier for citizens living in rural communities to receive funds from friends and family abroad. With the service 100% mobile based, low income households will be able to receive their money right on their phones too.
Back in 2018, WorldRemit entered into a partnership agreement with Dashen Bank. The bank is another of Ethiopia’s leading banks, according to the brand. Dashen currently has 1.8 million customers and a total of 372 branches located in different parts of the country.
Dashen is known for being innovative, observers say, making its partnership with WorldRemit a good match. In an interview with Andrew Stewart, the remittance brand’s Managing Director for Middle East and Africa, the company is “delighted” with its partnership with Dashen Bank as it is a “leading financial institution” in the country. “Our partnership with Dashen will drive convenience and ease of banking, and offer recipients a greater choice of pickup locations across Ethiopia”, he added.
WorldRemit makes it possible for its customers to send money from 50 countries to more than 145 destinations. According to the brand, over half of its money transfer transactions go to Africa. The company reportedly processes one million transfers every month.
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