Today’s guest, Ambassador Fitsum Arega, is a seasoned diplomat with extensive experience in international relations. He has a strong background in negotiation and conflict resolution, having served in various diplomatic roles around the world.
Ambassador Arega is known for his exceptional communication skills and his ability to build strong relationships with key stakeholders. He is a strategic thinker and a skilled problem solver, able to navigate complex political environments with ease.
In addition to his diplomatic work, Ambassador Arega is also a passionate advocate for human rights and social justice. He has worked tirelessly to promote peace and stability in regions affected by conflict, and has been recognized for his efforts by numerous international organizations.
He is a dedicated and talented diplomat who is committed to making a positive impact on the world stage. In a recent interview with The Ethiopian Herald, Ambassador Arega addressed a range of issues related to the Ethiopian Diaspora, their contributions to nation-building efforts, and the steps being taken to resolve their challenges. Have a nice read!
What are strategies to help the Diaspora participate in the political, economic, and social realms?
When discussing the Diaspora, we are referring to an Ethiopian community residing abroad in various countries with different circumstances and statuses. The levels of well-being and education among the Diaspora in the United States and the Middle East are not equal. In Middle Eastern countries, there are Ethiopians who have legally migrated for job opportunities. Overall, the Diaspora resides in diverse circumstances.
Therefore, we aim to facilitate peaceful living for the Diaspora, protecting their rights in their countries of residence. Those with the ability can come back to Ethiopia and take advantage of the opportunities available. Others who cannot physically return can still support their country by participating in local initiatives such as “Dine for Shaggar,” “Dine for Ethiopia,” “Dine for Generation,” and the Grand Renaissance Dam project. Some are even participating by buying shares without being physically present. We have been actively working to engage the Diaspora in various economic sectors for their benefit.
In terms of strategy, there was an earlier Diaspora policy that was believed to align with the reforms. However, there have been some changes, and we have conducted a study involving scholars from four universities to make amendments. The policy is currently undergoing the amendment process, and we, Ethiopian Diaspora service, are serving as an independent entity operating under the Ministry of Foreign Affairs.
This entity mobilizes 50 missioners that are working closely with Ethiopian embassies. We have a robust structure in place to address and work on Diaspora matters consistently. Locally, we have Diaspora offices in all regional states, with a network of networks established in each state. As part of our strategy, we utilize our missioners abroad in different countries who have various connections and arrangements. Additionally, we have a system in place to provide individualized services.
How would you assess the nine-month performance of the office? Have any gaps been identified, and what are the solutions?
Our approach has been to strengthen the strategy, make appropriate arrangements, and enhance engagement with stakeholders. In the first six months, negative activities in certain areas damaged relationships with their respective countries. This led to objections escalating to peaceful demonstrations in North America, Europe, and Australia. We then facilitated opportunities for the Diaspora to ask questions and receive responses from officials. We worked diligently to engage with the Diaspora and encourage open discussions about Ethiopia’s future. Some individuals were found to be supporting militant groups in Ethiopia, and we urged them to consider peaceful resolutions. Eventually, the situation returned to normal.
The first quarter was challenging, but tensions eased in the second quarter as communication improved. In the third quarter, we decided to shift focus to momentum and engagement by launching our initiatives. The Grand Ethiopian Renaissance Dam (GERD) is nearing completion, with only 2% left to finish. We initiated the “Finish GERD” movement and set a goal to raise 3 million USD from the Diaspora before the dam’s inauguration.
Within seven weeks, we collected 1.2 million USD through bond purchases and donations. In areas where our embassies couldn’t reach, we utilized platforms like Fin-Take and collaborated with other licensed money transfer entities. Significant contributions were made from countries like Saudi Arabia, Greece, and Kenya, with weaker participation observed in North America, Canada, and London. Efforts are being made to strengthen engagement through digital platforms in those regions.
Another accomplishment is the progress made in remittances. Following the second phase of economic reforms, foreign currency exchange measures implemented since July 29, 2024, have helped stabilize the exchange rate. Remittances have increased from 4.4 million USD to 5.1 million USD in nine months, surpassing exports like gold and coffee. However, there is still more work to be done.
One challenge has been the difficulty for Ethiopian Diaspora members to open dollar accounts, limiting their financial capabilities for projects like the GERD, investments, or savings. To address this, the National Bank of Ethiopia introduced the “Unite.et” mobile app to assist Diaspora members in opening and managing dollar accounts.
Aware of the unfamiliarity with the app, promotional activities have been conducted in partnership with the National Bank of Ethiopia, including events in Washington D.C. and London. Efforts are also being made to resolve digital ID-related issues for diaspora members, with plans to launch National ID services in Abu Dhabi and Dubai, followed by expansion to other locations after assessing progress.
Investment engagement has been another success story over the past nine months. There are Diaspora members who have invested in Fintech or other technologies. For example, over 100 companies have invested in money transfer services, including foreign companies. Some Diaspora members have obtained licenses and worked on various projects with Ethio-telecom, providing proposals and working as agents at call centers, payment gateways, e-commerce, and facilitating job opportunities for other Ethiopians.
Additionally, some youths have taken on tasks from foreign companies and received payment for their work, benefiting over 45,000 citizens, including Diaspora members, with a focus on technology-related tasks.
Another area of Diaspora engagement is the capital market or stock market. Recently, Diaspora members participated in the Fintech exhibition organized by the Ethiopian National Bank in conjunction with the Ethiopia Financial Forum. This type of engagement does not necessarily require a large amount of capital, but rather knowledge, leading to the creation of many startups.
Furthermore, Diaspora members have been involved in various development activities such as agriculture, manufacturing, hotels, and tourism. In terms of banking services, there previously were limited financial institutions offering long-term loans for investments, but now there are numerous financial companies emerging. For example, the Commercial Bank of Ethiopia has established a subsidiary funded by diaspora shares, providing an opportunity for Diaspora members in need of significant capital.
Moreover, the Ethiopian Securities Exchange has introduced new ideas that present significant opportunities for the Diaspora to make money remotely. This includes the ability to purchase treasury bills and trade various stocks throughout the day, offering flexibility and potential for profit.
The Diaspora also has a significant contribution to the progress of Ethiopian tourism, either by visiting as tourists or by assisting others in visiting Ethiopia. A clear example of this is Ethiopian Airlines, where a large number of Diaspora members travel to Ethiopia and other countries using this airline, greatly contributing to Ethiopia’s economic growth.
Recent international summits held in Addis Ababa, such as ID for Africa, Ethiopian Finance Forum, Digital Ethiopia 2025, and Invest Ethiopia, saw a high level of participation from the Ethiopian Diaspora, either as organizers or participants. This type of tourism is often referred to as MICE, and the Diaspora’s contributions in this area are substantial. Even when foreign countries advised their citizens not to travel to Ethiopia due to conflicts in certain areas, it was the Ethiopian Diaspora who lobbied with accurate information, disregarded the advice, and returned to their country.
How can the African Diaspora residing in Europe benefit from the new GIZ programme called WIDU?
In terms of financial transactions, GIZ has provided assistance to the African Diaspora through its new initiative called WIDU. WIDU.africa is a project implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), with the primary aim of improving the employment and income potential of micro and small entrepreneurs. To achieve this, WIDU collaborates with the African Diaspora in Europe.
All project activities are carried out through the specially developed online platform, www.widu.africa, which was launched in November 2019. After successful piloting in Ghana and Cameroon, the project has gradually expanded its activities to Ethiopia, Kenya, Togo, and Tunisia. Since then, the WIDU project has been working to harness the potential of the diaspora for economic development and job creation.
Through this collaboration, various joint activities have been implemented to mobilize members of the African Diaspora for the benefit of micro and small businesses in these six countries. Using an innovative and digitized approach, WIDU aims to maximize the impact of remittances from Africans living abroad in a simple, direct, and transparent way. This presents an opportunity to overcome barriers related to access to finance and make households more self-sufficient through income diversification.
In practical terms, through this approach, an entrepreneur can receive financial support from friends and family abroad and double their contribution thanks to a subsidy of up to 2,500 Euros offered by WIDU. In addition to financial support, WIDU entrepreneurs also benefit from professional and individualized coaching.
Participation is open to entrepreneurs in all sectors of activity and is subject to the following conditions: the entrepreneur must be supported by a Diaspora donor living in one of the nine countries in Europe (Germany, Austria, Belgium, Denmark, France, Norway, the Netherlands, Sweden, and Switzerland) and wish to support an entrepreneur located in one of WIDU’s six partner countries.
If a Diaspora member in Germany or other European countries wishes to transfer up to 2,500 Euros to family or friends, there is a matching fund available. Additionally, if a Diaspora member wants to invest in a business, such as a hotel costing 2,000 Euros, the German government will provide 2,500 Euros to support the venture.
This encourages Diaspora members to invest in their home country rather than sending small amounts monthly. The program is being promoted in six European countries, and other development partners are encouraged to assist in developing similar programs to help diaspora members create sustainable businesses and economic independence in their home country.
There is a new draft regulation that allows foreign investors to have the right to property. How can this be related to the Diaspora and benefit them?
The regulation is prepared by the Council of Ministers. It should be ratified by the parliament, and the draft policy is sent to the House of People Representatives. According to the law of the land, non-portable properties such as houses and buildings were not transferred to foreigners, with the exception of owning property registered under a company name.
Foreign investors have the right to property registered under the name of their company. The investment itself owns the house, building, and other properties. When the investment activity of that investor is terminated, he/she loses ownership rights. However, the new proclamation allows investors to have houses, buildings, and other property in their name.
When we consider its connection with the Diaspora, those who change their citizenship hold a yellow card that testifies their Ethiopian citizenship. If they obtain a yellow card that identifies them as Ethiopians, they have the right to have any non portable properties including houses and buildings. However, they face various challenges when they try to repatriate capital, as Ethiopians are expected to keep their profits in the country.
Some Ethiopians are changing their citizenship in order not to lose this economic advantage. In order to benefit from the capital made in this country like foreign investors do, Ethiopians are not interested in taking the yellow card.
In real terms, there are Ethiopians who have changed their citizenship and invested in Ethiopia in different sectors. These people can repatriate their capital like foreign investors do. The Diaspora, which is considered as Ethiopians, can engage in business areas allowed for Ethiopians alone, but they were not able to repatriate capital like foreigners do. The new amendment states that without registering and obtaining a yellow card, the Diaspora can be the owner of non-portable property.
The regulation aims to create ample job opportunities and accelerate Ethiopia’s economic activities, as long as it does not affect citizens’ property rights. Some consider the proclamation as affecting citizens’ rights, but this is far from the truth.
As we all know, the Diaspora Trust Fund was started following the rise to power of Prime Minister Abiy. Can you provide an update on its current status?
The Diaspora Trust Fund is an initiative created by Prime Minister Abiy, which requests the Diaspora to donate one dollar from their daily coffee or Merkato expenses. As a member of the Diaspora, I contribute $30 per month and encourage embassy workers to do the same. Together with the board, we have completed various tasks. For example, we purchased masks and other medical equipment costing three million USD and transported them in four cargo shipments during the COVID pandemic.
We collaborate with the government while also following the Prime Minister’s instructions to operate as an independent body. In a recent Zoom discussion with the education minister, we committed to building four schools in war-affected areas. We have also provided seed funding for five social projects after evaluating proposals. Just four months ago, we developed a program to provide seed funding for startups after professional evaluation of their proposals.
In general, they are investing, the money collected from the Diaspora, for the benefit of the public. Their activities are transparently showcased on their website. To date, they have mobilized over 10 million USD and transparently distributed it for the people’s benefit.
How far is your office willing to go to bridge the information gap with the Diaspora, especially in keeping them updated on the political, economic, and social affairs of Ethiopia?
If they need information, we are here to provide it. We are making efforts to keep them informed through our entire social media network, although this may not be as comprehensive as information available on YouTube, where many individuals or institutions share misleading information. The government is unable to control this, but government communication efforts need to be strengthened.
Embassies should also play an active role in this. During my time as an ambassador in the US, I traveled to every state to engage with the Diaspora. They would speak angrily about local issues, and while I listened patiently no matter how their approach affected me, I encouraged them to communicate respectfully. Eventually, we built a good relationship. When handled properly, the Diaspora has a kind heart for their country. I once met with Diaspora leaders who organized a peaceful demonstration, and through peaceful dialogue, they calmed down. Later on, I convinced them to mobilize fundraising efforts for the GERD, resulting in a significant amount of donations beyond expectations.
However, we must reject those who seek to unlawfully overthrow the government. Those desiring a change in regime should establish a competitive political party with clear political ideas. If elected, they can form their own government as per the law of the land. Alternatively, they can share their ideas with the National Consultative Commission, which will have two opportunities to engage with the Diaspora. We have worked with the commission to organize programs in areas with large Diaspora populations to gather important agendas.
Thank you
Thank you too, come again.
THE ETHIOPIAN HERALD SATURDAY 31 MAY 2025
