Economy
Ethiopia Records 824% Remittance Growth Over Past Decade
Capital Ethiopia · 2 weeks ago · Read the Full Story on Capital Ethiopia
AI SUMMARY
Ethiopia has recorded an 824% surge in remittance inflows over the past decade, reaching an estimated $7.14 billion and accounting for 5% of its gross domestic product.
- Ethiopia has become Africa's fourth-largest remittance recipient, drawing an estimated $7.14 billion in formally recorded inflows.
- Data from the International Fund for Agricultural Development (IFAD) shows that Ethiopia's remittance receipts surged by 824% since 2016.
- The 2025 remittance inflows account for approximately 5% of Ethiopia's gross domestic product (GDP) and represent roughly 43% of its total export value.
- Ethiopia ranks alongside Egypt, Nigeria, Morocco, and Kenya, which collectively receive nearly 75% of all remittances sent to Africa.
- Remittance totals across Eastern Africa increased by 174% over the decade to reach $22 billion, with 51% of these flows going to rural areas.
- The average non-bank cost of sending money to Ethiopia stood at 4.2% in 2025, which is lower than the regional average of 7.2% but remains above the UN Sustainable Development Goal target of 3%.
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