Diaspora Account in Ethiopia

Diaspora Account and How it Works

A Diaspora bank account is a bank account designed for Ethiopian origins living and working in different parts of the world. And in this guide, we are going to walk you through regarding the minimum opening balance, the available services and products, and whether a joint account is allowed or not.

Different banks offer different types of diaspora accounts in Ethiopia, while some banks do not have a specially designated account for the diaspora community. Most Ethiopian banks require living and working abroad for more than one year before opening such types of bank accounts.

People use Ethiopian diaspora account whenever they intend to invest in some kind of business, property or have the intention to return to their home country eventually. 

For other non-diaspora(residentials) banking services in Ethiopia, read here.

Benefits You Get by Opening a Diaspora Bank Account in Ethiopia

Even if most of the banks offer some sort of Diaspora Account services like awash bank diaspora account and Commercial Bank of Ethiopia diaspora account (CBE diaspora account), they differ in saving interest rates, services, and other benefits. Here are some of the general benefits you get when opening a diaspora account in Ethiopia:

• The diaspora account may be used as collateral to receive local currency credit from the domestic market.
•  Loans
  • Diaspora Consumer Loan
  • Diaspora Vehicle Loan
  • Diaspora Mortgage Loan
  • Diaspora Business Loan

Some bank branches might have special offers when opening one of these accounts. Carefully comparing and choosing the right bank is an important step before opening your Diaspora Account. Visit our page on best banks for diaspora loans to find out which bank is best suitable for your loan needs.

Different Types of a Diaspora Bank Account

There are three main types of diaspora bank account in Ethiopia as listed in the National Bank of Ethiopia. This diaspora account in Ethiopia can be personal or business accounts. Depositing to a diaspora account is done mainly using, US Dollar($), Pound Sterling(£), and Euro(€). Your savings are stored in foreign currencies, giving you easy access to Dollar and Euro.

These are the three common types of Diaspora Accounts:

1. Fixed (Time) Deposit Account

• It is an interest-bearing account with an agreed maturity date. The minimum maturity period is three months.
• It is opened with an initial deposit of US Dollar 5,000 or its equivalent in any of the above-stated currencies.
• Interest on such accounts shall be payable only if they are maintained at least for the minimum period.
• Interest income on such accounts is tax-free.

2. Current Diaspora Account

• It is opened by the checkbook.
• Withdrawals can be made at any time by writing a check.
• It can be opened with an initial deposit of US Dollar 100 or its equivalent in any of the above-stated currencies.
• The maximum amount to be deposited shall not exceed US Dollar 50,000 or its equivalent in any of the above-stated currencies.
• Interest shall not be paid to a non-resident foreign currency current account.

3. Non-Repatriable Birr Account

•  It may take the form of a saving deposit account that can be used for local payments only.
•  Such an account will pay double interest to the minimum saving deposit rate set by the National Bank of Ethiopia.
•  Money can neither be transferred from this account to abroad nor converted from the local currency to any foreign currency.

How to Open a Diaspora Account in Ethiopia

Just like you ask how to open a bank account in Ethiopia, when it comes to diaspora accounts, different banks have their own way of connecting with the Ethiopian diaspora agency website or community.

Simple steps

1. Choose a bank .
2. Choose diaspora account type.
3. Complete the documents.
4. Deposit initial amount

Some banks have online forms that you can download and fill out, while others use the conventional face-to-face way of communication. If you are opening an Ethiopian diaspora bank account from abroad, then you need to visit your local Ethiopian embassy to validate your document to be sent out to the banks.

Some of the common methods of opening a diaspora account in Ethiopia:

• Persons residing abroad can open the account in person or by post in his/her name.
• Applicants who could not be physically presented to open the account in the domestic banks can use the Ethiopian Embassies or Ethiopian diaspora branch address, Correspondent Banks or nearby remittance service providers to prove their identities.
• An individual may open a current account in only one of the domestic banks whereas he/she may open fixed deposit accounts in more than one bank.
• Opening of a foreign currency account by Power of Attorney is not allowed. However, Power of Attorneys is allowed to withdraw from these accounts provided that the Power of Attorney explicitly empowers them to operate these accounts.

Who Can Open a Diaspora Account in Ethiopia?

Eligibility Criteria to open Diaspora Bank Account in Ethiopia are :

• Non-resident Ethiopian;
• Non-resident foreign nationals of Ethiopian origin;
• Companies owned by non residents and located outside the Ethiopian territory
• 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.

Most banks that offer the diaspora dollar account in Ethiopia have a list of the requirements that needs to be met before opening such an account. You need to attach a copy of the document together with the required form that needs to be filled. You can download a more detailed description here.

Required Documents to Open a Diaspora Account in Ethiopia

• Resident ID and Passport (for Ethiopian national living abroad)
• Passport and Ethiopian Origin ID (For Foreign Nationals of Ethiopian Origin)
• Work permit and authenticated employment contract

How to Transfer Funds to a Diaspora Bank Account in Ethiopia?

How you transfer funds to an Ethiopian diaspora loan account depends on many variables such as currency, total amount and location. Read below to find out what applies in your case:

• Directly crediting to the account from place of residence through the bank’s SWIFT Address by:
  • The account holder
  • The spouse of the account holder up on presentation of marriage certificate.
  • The employer upon presentation of valid employment agreement.
  • The business entity owned by the account holder or share company up on presentation of documents ascertaining the shareholding
  • Other institution as per the valid agreement presented.
• Foreign currency cash notes exceeding USD 3,000 or equivalent in any other convertible currency provided that the holder presented signed and sealed foreign currency declaration form from Ethiopian Revenue and Customs Authority.
• Resident living in neighboring and Middle East countries are required to present signed and sealed foreign currency declaration form from Ethiopian Revenue and Customs Authority for less than or equal to USD 3,000 foreign currency cash notes or equivalent in any other convertible foreign currency to deposit in the account.
• Check deposits that originate from abroad also known as international banks in Ethiopia.
• A transfer from another type of non-resident foreign currency account Ethiopia owned by individuals and or enterprises.
• Receipt through international payment cards/credit cards/debit cards.

How to Close A Diaspora Bank Account in Ethiopia?

There are certain circumstances you want to close a Diaspora account:

• Upon the request of the account holder.
• When the account holder starts to live in Ethiopia after completion of his/her stay abroad.

Frequently Asked Questions About Diaspora Banking in Ethiopia