Commercial Bank of Ethiopia Strikes North America Remittance Deal With Ramad Pay











The Commercial Bank of Ethiopia (CBE), the country’s largest financial institution, has signed a memorandum of understanding (MoU) with Ramad Pay, a North America–based money transfer company, in a move designed to capture a larger share of Ethiopia’s fast-growing remittance market and bring more of those flows into formal channels.

Tapping Into a Multi-Billion Dollar Lifeline

Remittances remain one of Ethiopia’s most reliable sources of foreign exchange, providing critical hard-currency inflows that help the nation finance essential imports such as fuel, wheat, and industrial inputs. The World Bank estimates that Ethiopia receives well over USD 5 billion annually from its global diaspora—much of it originating in the United States and Canada, where a large Ethiopian community has settled over the past five decades.

Yet, a significant portion of these remittances traditionally moves through informal hawala networks—trusted community money brokers who transfer funds outside the banking system. While these networks are fast and familiar, they can undercut the central bank’s ability to monitor inflows and manage the foreign-exchange market.

Expanding Legal and Digital Channels

Speaking at the signing ceremony, CBE President Abe Sano said the agreement with Ramad Pay will both widen the bank’s international footprint and give Ethiopians in North America a safe, legal, and convenient way to send money home. “This partnership ensures that remittances come through regulated channels, benefiting both citizens and the broader Ethiopian economy,” he noted.

Sano emphasized that the CBE already handles a majority of formal remittance flows, but sees room to capture more by offering technology-driven services comparable to those of informal brokers. With a large and increasingly tech-savvy diaspora, the bank views the Ramad Pay alliance as a gateway to users who value digital convenience but also want the security and compliance of a regulated institution.

A Digital Twist on Hawala

Ramad Pay CEO Aden Hussein welcomed the partnership, calling it a milestone for his company and a major win for customers. He pointed to CBE’s extensive branch network, its decades of brand recognition, and its ability to process transactions across Ethiopia’s banking system as crucial advantages.

Hussein explained that Ramad Pay’s platform integrates the trusted relationships of traditional hawala with modern digital infrastructure. By allowing customers to initiate transfers through mobile apps or partner outlets in the U.S. and Canada, the service can deliver funds almost instantly in Ethiopia—without the high service fees often charged by global money transfer giants.

Supporting Monetary Policy and Financial Inclusion

For Ethiopian policymakers, the timing is strategic. The National Bank of Ethiopia has been pushing to formalize remittances and reduce pressure on the country’s foreign-exchange reserves. Bringing more inflows into the banking system strengthens the central bank’s ability to stabilize the birr, supports the government’s broader reform agenda, and provides new funding channels for domestic investment.

Moreover, expanding regulated digital remittance options could advance financial inclusion. By drawing recipients—often families in rural areas—into the formal banking system, services like the CBE–Ramad Pay partnership can encourage savings, access to credit, and participation in Ethiopia’s emerging digital economy.



While the MoU is an initial framework rather than a fully executed service rollout, both institutions say they will move quickly to operationalize the agreement. If successful, the collaboration could set a precedent for other diaspora-focused fintech partnerships, helping Ethiopia tap into its far-flung communities for long-term economic resilience.