Different banks in Ethiopia with progressive benefits are attracting the diaspora community with a special diaspora account in Ethiopia. Some banks offer ultimate prizes turning the diaspora community to invest in Ethiopia.
The Ethiopian Banks and government encourage Ethiopian Diasporas to save foreign currency accounts at home to support domestic investment, foreign exchange reserve, and encourage foreign direct investment.
Best Diaspora Banks
8.1
Awash Bank
Banking and Services for micro finance institutions
Different banks offer different types of diaspora accounts in Ethiopia, while some banks do not have a specially designated account for the diaspora community.
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.
Most Ethiopian banks require living and working abroad for more than one year before opening such types of bank accounts.
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 form (cbe diaspora account), they differ in saving interest rates, services, and other benefits.
Some bank branches might even offer special offers when opening one of these accounts. Carefully comparing and choosing the right bank is an important step here before opening your Diaspora Account.
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
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.
Your savings are stored in foreign currencies, giving you easy access to Dollar and Euro.
Depositing to this diaspora account is done mainly using, US Dollar($), Pound Sterling(£), 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 (NEW!)
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.
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 are the following:
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 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 the more detailed description here.
Required Documents to Open the 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 A Diaspora Banking in Ethiopia
Can Diaspora Accounts Opened for Ethiopians Residing Abroad?
Yes, Business entities owned by non-resident Ethiopians and located outside the Ethiopian territory for more than now year can open this account by himself.
Diaspora Account in 2023: What is Minimum Opening Balance?
The Accounts of Diaspora are subject to a number of different restrictions, one of which is the minimum opening balance.
In Ethiopia, the minimum opening balance for a Diaspora is $100. This means that you must have at least $100 in your deposit before you can start using it.
The accounts are in place to prevent money laundering and other financial crimes. By requiring a minimum opening balance, it ensures that people who open Diaspora accounts are doing so for legitimate purposes.
Diaspora Account Takeaways in Ethiopia
If you’re interested in to open a Diaspora Bank Account in Ethiopia, be sure to have the minimum opening balance of $100.
Diaspora Banking in 2023: What are the products and services available?
Diaspora banking in Ethiopia refers to the provision of banking services to Ethiopian nationals living outside of the country. These services typically include savings and checking accounts, money transfers, and loans.
There are a number of diaspora banks in Ethiopia that offer these services, including the Commercial Bank of Ethiopia, the Development Bank of Ethiopia, and the Ethiopian Diaspora Trust Fund. Each of these banks has a different set of products and services available, so it is important to compare them before choosing one to use.
Diaspora Banking Products and Services
Some of the products and services available to diaspora banking customers in Ethiopia include:
Joint Account 2023: Can I Let Someone to Open My Account?
No, Opening of a foreign currency account by Power of Attorney is not allowed. However, If can not be present in person you can use the Ethiopian Embassies, Correspondent Banks, or nearby Remittance service providers to prove your identity
Joint Account Definition
By definition, joint account holder has the same account access and responsibilities as the primary account holder. They can make deposits and withdrawals, transfer money, and pay bills. If you have a business, a common account can be a good way to give someone else authority to manage your account.
If you’re thinking about adding an account holder, there are a few things to keep in mind.
– First, you’ll need to choose someone you trust. This person should be someone you’re comfortable sharing your financial information with and who you know will manage the account responsibly.
– Second, you’ll need to make sure that both you and the joint account holder understand the account agreement. Be sure to review the account agreement together so that there are no surprises down the road.
– Finally, remember that you are jointly responsible for the account. This means that if the account has any negative
