The first-ever direct agreement between the Commercial Bank of Ethiopia (CBE) and a diaspora community overseas was reached when the Bank signed a historic memorandum of understanding with the Ethiopian Community in Abu Dhabi.
The agreement was signed on Monday by Mr. Abdulnaser Haro, the chairman of the Community Board, and Mr. Abe Sano, the president of CBE.
The partnership seeks to improve financial cooperation with the Ethiopian diaspora by fostering a culture of saving, increasing access to business and investment financing, and promoting official money transfer channels. Another aspect of the agreement is planned training and integration of informal money collectors into the legitimate financial system.
Significant step in mobilising the Ethiopian diaspora for national development
During the signing ceremony, CBE President Abe Sano stated that the agreement is significant in mobilising diaspora resources for national development.
He pointed out that Ethiopians living in the United Arab Emirates will now have more formal avenues and incentives to support their nation’s economic growth.
According to Abdulnaser Haro, chairman of the Ethiopian community in Abu Dhabi, the agreement creates opportunities for cooperation in cutting-edge financial technologies and programs designed for low-income members.
He emphasised that Ethiopian workers and families in the UAE will directly benefit from the agreement by having easier access to loans for condominium housing projects.
CBE’s agreement with the Ministry of Labour to simplify remittance services
The Ministry of Labour and Skills and the Commercial Bank of Ethiopia (CBE) inked a Memorandum of Understanding (MoU) to increase financial inclusion for women and young people, simplify remittance services for Ethiopians living overseas, and offer startup loans to business owners.
According to the agreement announced in August, CBE will collaborate with development partners to mobilise funds for job creation, encourage savings programs, and facilitate financial access for citizens, especially young business owners.
At the signing ceremony, CBE President Abie Sano reaffirmed the bank’s dedication to supporting productive citizens through extended financial access and institutional partnerships.
He said the agreement would foster a savings culture and entrepreneurial abilities among young people and provide financial support for entrepreneurs.
CBE’s contribution to job creation and skills development
Minister of Labour and Skills Muferihat Kamill commended the bank’s contribution to job creation and skill development, pointing to initiatives like the Negadras Job and Skill Creation Competition, which is organised in collaboration with Ethiopian Broadcasting Corporation, the state-owned media outlet.
The minister said the bank’s work is helping her office create qualified entrepreneur citizens. She clarified that the bank’s funding is essential to bringing business ideas to life.
Additionally, the ministry will develop a system that will help citizens who work overseas save more money when they send money home.
According to the memorandum, this framework will benefit women and young people more.
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