Ethiopian Diaspora Spearheads Innovation, Economic Growth, Says Ambassador Fitsum

Addis Ababa, July 2, 2025 (ENA) – The Director General of Ethiopian Diaspora Service, Ambassador Fitsum Arega underscored the pivotal and escalating role of the Ethiopian diaspora in fostering the nation’s innovation landscape and propelling its economic growth.

Speaking on recent developments concerning diaspora engagement, he noted how their engagement, particularly through enhanced foreign currency inflows and strategic partnerships, is significantly contributing to Ethiopia's development agenda.

The ambassador also noted the profound positive impact of the second phase of the Homegrown Economic Reform Program.

This initiative has been particularly successful in boosting foreign currency inflows by channeling remittances, previously routed through informal channels, into legal means.

"That's a big win for the diaspora," Ambassador Fitsum stated. "Now they can support their families more securely and benefit from better exchange rates."

As a direct result of these reforms, Ethiopia’s foreign currency reserves have seen significant improvement. "The country secured 5.1 billion in remittances this year, up from 4.4 billion USD last year," the ambassador revealed, attributing this substantial growth to improved financial regulations and greater diaspora involvement.

The Director General also pointed to dynamic partnerships with international organizations such as the International Organization for Migration (IOM) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

These collaborations, he explained, are instrumental in strengthening diaspora engagement and unlocking new investment opportunities for Ethiopians living abroad.

Beyond formal initiatives, many diaspora members are independently mobilizing to offer vital services, particularly within the health sector.

He cited the "Heart Attack Ethiopia" initiative as a leading example and through this project, medical professionals travel to Ethiopia every three months to provide specialized treatment, train local staff, and donate critical medical equipment, thereby ensuring both skill development and technology transfer.

Fisum  further highlighted inspiring stories of diaspora contributions across diverse sectors. "Just last week," he shared, "renowned chef Marcus Samuelsson was training students at the Hotel and Tourism Institute in Addis Ababa."

Samuelsson’s restaurant in the capital, the ambassador noted, is just one of many diaspora-led ventures driving innovation in hospitality and tourism.

In the academic sphere, university lecturers from the diaspora are playing a key role in knowledge-sharing efforts across the country. Simultaneously, in the business world, many entrepreneurs are investing in high-growth sectors.

Ambassador Fitsum particularly underscored the profound influence of diaspora investment in Ethiopia’s rapidly growing FinTech industry.

"More than 20 FinTech companies have been registered by the National Bank," he said, noting that diaspora-driven initiatives are accelerating the growth of mobile money, digital payment platforms, and e-financial services.

The telecommunications sector is also reaping significant benefits, with diaspora professionals actively managing call centers, FinTech operations, and digital finance platforms.

Furthermore, diaspora experts with extensive global experience are contributing to critical institutional developments within Ethiopia, which includes their involvement in the establishment of the Ethiopian Securities Exchange (ESX), the formation of a national stock market authority, and the design of long-term financing mechanisms.

These concerted efforts, Ambassador Fitsum concluded, are playing a pivotal role in modernizing Ethiopia’s economy and building lasting institutional capacity for the nation’s future.