-Allocates 100 bln Birr loan for investment
ADDIS ABABA – Ethiopia’s recent foreign currency directives have boosted financial inclusions and enhanced market-based foreign currency system,the National Bank of Ethiopia (NBE) disclosed.
NBE Governor Mamo Mihretu said that the new directives have enhanced market-driven foreign currency system and further improved financial inclusions.
He stated that NBE allocates over 100 billion Birr used for mortgage loan and other investments secured from remittance sent by Ethiopians and foreign nationals of origin.
Mamo further stated that the bank has launched a large scale remittance campaign for the next six months aimed at encouraging remittance through legal channels as part of realizing recently announced national macro-economic reform and boosting foreign currency.
The campaign encourages Ethiopians abroad to remit funds directly through legal channels and enables Ethiopians to actively participate in local economy, he said.
The governor added that the bank has announced a modern and cost effective remittance system in view of improving foreign currency reserve.Previously there are about 86 foreign currency supervision directives and they are now merged so as to attract more remittance and boost foreign currency reserve.
The previous system has seriously affected the nation’s economy leading to weak financial system, illegal foreign currency transaction, money laundering and macro-economic imbalance, he stated.
Mamo noted that the nation is creating conducive environment so as to increase remittance and Ethiopians and foreign nationals of Ethiopian origin have been contributing their parts over the past years. Hence, about 76 percent of Ethiopia’s remittance comes from individuals.
NBE has also launched a new platform dubbed Unite.etto allow Ethiopians and foreign nationals of Ethiopian origin to open bank accounts in Ethiopia virtually thereby helping Ethiopia receive increased remittances like other successful countries in the area such as India, Philippines, Mexico and Nigeria, he mentioned.
Among the 10 largest recipients of Diaspora remittance in the world, two are from Africa, Egypt and Nigeria, accounting 24 billion and 21billion USD respectively,Global Chairman of Fairfax Africa Fund Zemedeneh Negatu said.
Accordingly, the recent currency regime change by Ethiopia Africa’s 2nd most populous country with approximately 3.5 million Diasporas worldwide is expected to increase formal remittance significantly during the coming few years, he quoted.
Furthermore, very advanced, easy to use and cost effective remittance fintech rolled-out by NBE, locally developed by Viditure, complimented by remittance apps used by the country’s commercial banks such as CashGo, MamaPays and EthioDirect, should further facilitate the growth of foreign currency remittance via official channels. Ethiopia has the potential to match or even exceed the 20 plus billion USD remittances received by Egypt and Nigeria, he added.
BY HAILE DEMEKE
THE ETHIOPIAN HERALD TUESDAY 17 SEPTEMBER 2024
