1. ACP-EU Migration Action Peer-to-Peer Exchange on Remittances
TECHNICAL ASSISTANCE
FEDERAL GOVERNMENT OF THE REPUBLIC OF ETHIOPIA
MINISTRY OF FOREIGN AFFAIRS
Demeke Atnafu
Director General for Diaspora Engagement Affairs Directorate General

2. Ethiopia – country profile
East African nation: neighboring Djibouti, Eritrea, Kenya, Somalia, Sudan and South Sudan.
Population (2014): 97 million
Population growth (avg. annual, ): 2.6%

3. Ethiopia – country profile
GNI per capita (2015): USD
GDP growth (avg-annual, ): 10.2%
Mobile cellular subscriptions (per 100, 2014): 31.6
Internet users (per 100, 2014): 2.9

4. Diaspora – key data
Ethiopians and person of Ethiopian Origin abroad (est.): 2.5 – 3 million
Top destination countries (2013): the United States, Saudi Arabia, UAE, Kuwait, Qatar, Israel, Italy, South Africa, Canada, the United Kingdom, Sweden, Germany, Australia
Profile of diaspora: Professional, semi-skilled, unskilled.

5. Remittances
Remittance inflows have increased dramatically from USD 1.9 billion (2010) to USD 3 billion (2014) (Source: National Bank of Ethiopia)
Diaspora remittances represented 5.3% of the country’s GDP between 2010 and 2014.
Ethiopia is ranked as 1 of the top 10 remittance receiving countries in Sub-Saharan Africa (2015)

6. Government of Ethiopia (GoE) - policies
Positive measures have been taken by the GoE to improve the flow of formal remittances as well as to reduce transfer costs.
These include a number of directives:
Non-exclusivity agreements between banks & remittance service providers
Charge zero or minimum tariff on remittance transfer services
Reveal terms & tariffs to clients.
Establishment & operation of foreign currency account for non-resident Ethiopians and Ethiopian origin foreign nationals – aimed at encouraging savings and maximizing the economic & social benefits of remittances.

7. Challenge with formal remittance flows
Cost of sending money to Ethiopia remains high at about 7.1% of USD 200 transferred.
Limited coverage of financial institutions , especially in rural areas.
Limited incentives to encourage formal remittance flows/ informal channels perceived to be cheaper and faster.

8. Technical Assistance (TA) request
Research study to:
Identify barriers adversely affecting the Ethiopian diaspora from using formal remittance transfer channels.
Put forward possible solutions to enhance formal remittance flows to Ethiopia to support sustainable economic development.

9. TA request Activities to date:
The expert has carried out meetings and interviews with:
the Ministry of Foreign Affairs, National Bank of Ethiopia, Commercial Bank of Ethiopia, RSPs, Academics, International Organizations (ILO, IFAD, World Bank), African Union Commission, Ethiopians abroad and diaspora associations.
Desktop research.

10. TA request
Next steps:
Drafting of study and development of recommendations
Presentation of the study to the Ministry of Foreign Affairs.

11. THANK YOU