Nation Has Potential to Increase Remittance Twofold within Three Years: Diaspora Agency

Addis Ababa January 25/2022/ENA/ Remittance to Ethiopia can increase by two-fold within two to three years, according to Ethiopian Diaspora Agency.

Even if there are more than 3 million Ethiopian diaspora around the world,  the nation has been securing an average of 4 billion USD annually in remittance.

Speaking to ENA, Ethiopian Diaspora Agency Deputy Director-General Mohammed Endris said  the nation can increase this by twofold if the nation works hard in building institutional frameworks, infrastructures and incentive packages.

Remittance is a ready made product that does not require extra effort, except building  separate infrastructure, legal and institutional frameworks, and incentive mechanisms.

“If we really invest and work on it in terms of legal institutional incentive packages, the amount of remittance we can get from the diaspora community will increase by twofold may be within two to three years because it is a ready made product – it is not something to cook or produce.”

The government is only expected to create the channel by building strong institutional frameworks and attractive incentive packages, he stated, adding that this needs the engagement of pertinent stakeholders.

“We are only expected to create the channel and that is not only limited to the capacity of the diaspora agency. It needs the engagement of financial and other institutions at home,” Mohammed pointed out.

According to him, institutional and legal frameworks need to narrow the gap between the black and the official markets, attach the remittance with asset building activities at home and create incentive mechanisms that can motivate the diaspora community to send money through official means.   

The deputy director-general further revealed that the agency has been working on building institutional frameworks and conducting research activities, together with GIZ, by taking the best experiences of other African countries, including Nigeria, Ghana, Morocco and Kenya in order to increase the amount of remittance that Ethiopia can secure.