KEYIR NEWS - The Commercial Bank of Ethiopia (CBE) has signed a Memorandum of Understanding (MoU) with Botim, a leading financial services provider in the United Arab Emirates, to expand and enhance legal money transfer services for Ethiopians living abroad.
The agreement was concluded during an official visit to the UAE by a CBE delegation led by President Abe Sano.
Speaking at the signing ceremony, Abe Sano emphasized the significance of the partnership in strengthening Ethiopia’s remittance system at a time when the country has shifted to a market-driven foreign exchange regime.
“Options such as Botim will play a vital role in enabling our community to transfer money through legal channels,” he said. “This is not only about convenience but also about ensuring that remittances contribute directly to the country’s economy.”
Dr. Tariq Bin Hendy, CEO of Botim, welcomed the agreement, stating that it establishes a strong foundation for cooperation between the two institutions. “This partnership will provide Ethiopians living in the United Arab Emirates with a secure and efficient alternative to send their money home.
Legal remittance channels are essential in safeguarding the financial well-being of communities and supporting economic growth,” he noted.
Remittances from Ethiopians living abroad are a critical source of foreign exchange for the country, contributing billions of dollars annually. However, a significant share of these transfers has historically flowed through informal or illegal channels, depriving the state of much-needed hard currency and exposing individuals to financial risks.
By partnering with Botim, CBE aims to make formal money transfer options more accessible, affordable, and secure. The agreement is expected to particularly benefit the large Ethiopian diaspora community in the UAE, estimated at several hundred thousand people, many of whom rely on remittances to support families and communities back home.
Analysts say that strengthening formal remittance channels is key to Ethiopia’s efforts to stabilize its foreign exchange reserves and support broader economic reforms.
The government has been under pressure to reduce dependency on external borrowing while encouraging inflows of foreign currency through exports, investment, and remittances.
“Every dollar sent home through legal means contributes to macroeconomic stability,” said one economic observer. “This MoU with Botim is an important step in aligning diaspora remittances with Ethiopia’s broader economic recovery strategy.”
The MoU opens the door for expanded collaboration between CBE and Botim in digital finance and payment solutions, areas where technology is increasingly transforming cross-border transactions.
Officials said the two institutions would explore additional initiatives to enhance financial inclusion and deliver user-friendly services for Ethiopians abroad.
For CBE, Ethiopia’s largest and oldest bank, the agreement reflects its ongoing efforts to modernize operations, deepen international partnerships, and play a central role in Ethiopia’s integration into the global financial system.
For Botim, the partnership expands its footprint in Africa while strengthening ties with one of the continent’s most populous nations.
As Ethiopia continues to implement reforms in the financial sector, partnerships like this are expected to not only strengthen remittances but also build trust in formal banking systems, creating long-term benefits for the economy and its citizens.