How to Open Diaspora Account in Ethiopia | Guideline and Benefits

March 20, 2023

Many Ethiopians live outside of the country. This diaspora community is estimated to be around 3 million strong, with large populations in the United States, Canada, and Europe. They play an important role in supporting their families back home through remittances and also contribute to the development of Ethiopia through investments and philanthropy. Different banks in Ethiopia with progressive benefits are attracting the diaspora community with a special diaspora account. Some banks offer ultimate prizes to entice the diaspora community to invest in Ethiopia.

The Ethiopian Banks and government encourage Ethiopian Diasporas to save foreign currencies at home to support domestic investment, increase foreign exchange reserves, and encourage foreign direct investment. Moreover, these special accounts also provide easy access to banking services and enable the diaspora community to contribute to the development of their home country. By investing in Ethiopia, the diaspora community can help create job opportunities and improve the overall economic growth of the country.

How to Open a Diaspora Account in Ethiopia

The Ethiopian diaspora association members

For those wishing to open an Ethiopian diaspora account, selecting a bank or financial institution with which to work is the first step in the process. It is important to research the different options available and compare interest rates, fees, and services offered by each institution. Additionally, it may be helpful to consult with a financial advisor or representative from the chosen bank to ensure that the account meets individual financial goals and needs. In this article , we will explore some of the top banks that offer Ethiopian diaspora accounts and highlight their key features and benefits to help individuals make an informed decision. 

Commercial Bank of Ethiopia Diaspora Account

Cbe logo

Currencies allowed to open a Diaspora account

Eligibility Criteria

  • Ethiopians living abroad
  • Non-resident foreign nationals of Ethiopian origin
  • Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents.

Opening Account

  • Ethiopian nationals/foreigners of Ethiopian origin residing abroad can open the account in person.
  • Applicants who cannot physically appear to open the account in domestic banks can use Ethiopian Embassies.
  • Opening a foreign currency account by Power of Attorney holders is not allowed.
  • However, Power of Attorney holders are allowed to operate these accounts, provided that the Power of Attorney explicitly empowers them to operate these accounts.

Required Documents

  • Application forms properly filled and signed by the applicant.
  • For Ethiopians or foreign nationals of Ethiopian origin valid passport and/or Ethiopian origin identification card and/or Resident identification card where they are living.

Oromia Bank Diaspora Account

Oromia Bank Diaspora Account

Who is eligible to open Diaspora accounts?

  • Non-Resident Ethiopian
  • Non-Resident Foreign Nationals of Ethiopian Origin

What kind of Diaspora accounts are allowed to open?

  • Diaspora Current Account
  • Fixed or Time Deposit Account
  • Non-repatriable Birr Account

Documents Required

  • Properly filled and signed application by account holder
  • Can be operate by power of attorney
  • Resident Permit/Certification
  • Valid passport and/or identification card
  • Certification of ownership entitlement for the organization and/or article and
    memorandum of association

Currencies allowed to maintain the Diaspora accounts?

Minimum foreign currency cash requirement to open Diaspora accounts?

  • For an individual USD 100 or its equivalent
  • For fixed time deposit USD 5,000 or its equivalent

How to credit Diaspora accounts?

  • The account holder
  • The spouse of the account holder upon presentation of marriage certificate
  • The employer upon presentation of valid employment agreement
  • The business entity owned by the account holder or share company upon presentation of documents ascertaining the shareholding

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Awash Bank Diaspora Account

Awash Bank Diaspora Account

Eligibility Criteria

  • Non-resident Ethiopian;
  • Non-resident foreign nationals of Ethiopian origin;
  • Companies owned by the above mentioned nonresidents and located outside the Ethiopian territory for more than one year;
  • Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents.

Opening of the Account

  • Ethiopian national/foreigners of Ethiopian origin residing abroad can open the account in person & by post in his/her home.
  • Applicants who could not physically appear to open the account in the domestic banks can use the nearby Ethiopian Embassies, correspondent banks or remittance service providers to prove their identity.
  • Opening and crediting of a foreign currency account by power of Attorney Holders is not allowed. However, Power of Attorney Holders are allowed to withdraw from these accounts provided that the Power of Attorney explicitly empowers them to operate the account.

Required Documents

  • Application forms properly filled and signed by the applicant and specimen signature.
  • For Ethiopians or foreign nationals of Ethiopian origin individuals, valid passport and/or identification card.
  • For Ethiopians or foreign nationality of Ethiopian origin who live in neighboring and Middle East countries should present authenticated residence and work permit from Ethiopian Embassy. Hence, all required documents should then be renewed every year and submitted to the bank.

Benefits of Opening Diaspora Account

Benefits of Opening Diaspora Account

The benefits and services you get from opening a diaspora account differ from bank to bank. Some banks may offer better exchange rates and savings interest rates. It is important to research and compare the benefits and services offered by different banks before opening a diaspora account. Here are some of the benefits you will typically get:

  • The diaspora account may be used as collateral to receive local currency credit from the domestic market.
  • Loans
    • Diaspora consumer loans
    • Diaspora vehicle loan
    • Diaspora Business Loan

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Written by Sophonias Woldu

Sophonias Woldu is an Ethiopian author with an outstanding skill for crafting unique and captivating articles that explore different aspects of life. He had an inquisitive mind from a young age and was always fascinated by the power of language and words. He writes articles about philosophy, theology, his native Ethiopia, and basically anything and everything else. Before embarking on a writing career, he had already begun a successful career in the electromechanical engineering field, having earned his degree from Addis Ababa Science and Technology University. In addition to being a prolific writer, Sophonias is also a public speaker and tech enthusiast who believes in harnessing technology to improve the lives of Ethiopians. Currently, Sophonias writes articles for www.typicalethiopian.com on a part-time basis.

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