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Remittance Inflows In Ethiopia And Country Experiences: the Practice And The Potential For Improvement


Remittances play an important role for developing countries like Ethiopia notably as a source of external finance for their economic and social developments especially when they are transferred through formal way. This paper attempts to explore the existing remittance transfer practices in Ethiopia, estimates the size of the formal and informal remittance sent to Ethiopia, and estimates the potential remittance that can be sent to Ethiopia and draws lessons from other countries experiences. The findings show that remittances transferred to Ethiopia informally are far much higher than the remittances transferred formally. And also, remittances sent to Ethiopia both formally and informally are low given the existing potential the country can receive. The paper recommends various policy interventions among others improving the workings of the formal remittance transfer system, publicize policy frameworks regarding remittance services, involve post office and micro-finance institutions that have a good outreach and suitable services in the transfer of remittances to rural Ethiopia, formalizing the informal remittance transfer sector through registration and mobilize non-residents to form "Home Town Associations (HTAs)" through charitable contributions and matching fund programs

Corporate Author: 
Getnet Alemu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
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Cataloge Date: 
Broad Subject heading: 
Growth and development
Call Number: 
330.963 PRO 2009
Serial Key Title: 
Proceedings of the Sixth International Conference on the Ethiopian Economy
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Content type: 
Publication date: 
2013-05-27 23:09:00
Forum or Discussion date: 
2013-02-27 15:02:18
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
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