Ethiopia has set its sights on mobilizing an impressive USD 8 billion in remittances during the 2025/26 fiscal year.
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Ethiopia has set its sights on mobilizing an impressive USD 8 billion in remittances during the 2025/26 fiscal year. This goal builds on a remarkable trend: remittance inflows climbed from around USD 4.4 billion in FY 2023/24 to USD 5.1 billion in the first nine months of FY 2024/25, already surpassing the prior full-year total.
Achieving USD 8 billion would mean a roughly 57 percent increase over the reported USD 5.1 billion baseline. The potential upside is substantial: more foreign currency reserves and a stronger foundation for macroeconomic stability.
A Brief Remittance History in Ethiopia
Remittances have long supported Ethiopia’s economy both as a stabilizing source of foreign exchange and a safety net for households abroad and at home. In 2014/15, Ethiopians sent as much as USD 3.5 billion, representing roughly 7.4 percent of GDP at the time. That number increased to around USD 4.5 billion in 2019.
Despite discrepancies between sources, the long-term trend is clear: formal remittances have grown substantially. In FY 2023/24, remittances surpassed USD 6 billion. As of early FY 2024/25, the total had already reached USD 5.1 billion in the first nine months.
Africa’s Largest Remittance Recipients
Ethiopia’s ambitions are bold, but how does the country compare to other African countries that receive remittances?
Egypt led with USD 22.7 billion in inward remittances
Nigeria followed with USD 19.8 billion
Morocco rounded out the top three at USD 12.0 billion
Other notable recipients include Kenya at approximately USD 4.8 billion, Ghana at USD 4.6 billion, and Senegal and Zimbabwe each near USD 3.0 billion.
Sub-Saharan Africa, as a region, received USD 55 to 56 billion in remittances in 2024.
In terms of share of GDP, remittances wield even more weight in some economies, typically smaller ones like Cabo Verde, but data for Ethiopia shows the growing absolute value is becoming meaningful even for a large economy.
Looking Ahead
Ethiopia’s push toward USD 8 billion in remittances is more than a financial goal. It signals a shift toward modernization, transparency, and diaspora-inclusive growth. The trajectory from USD 4.4 billion to USD 5.1 billion in just nine months of FY 2024/25, then surpassing USD 6 billion in FY 2023/24, shows momentum.
Ethiopia may be punching below some African leaders in remittance volumes, such as Egypt and Nigeria, but the pace of growth, paired with structural reforms, could reshape its role in the remittance landscape. The focused improvements in affordability, convenience, and trust could make Ethiopia a standout case in diaspora-led development.
As the fiscal year unfolds, all eyes will be on whether these efforts translate into steady monthly gains. A ramp-up of digital corridors, better pricing, and visible progress may not just reach USD 8 billion; they may create a durable growth engine for years to come.
