The Commercial Bank of Ethiopia (CBE) has launched CBE Connect, a digital platform designed to make sending money to Ethiopia faster, cheaper, and easier for diaspora communities.
The service allows users abroad to transfer funds directly to Ethiopian bank accounts or mobile wallets using Visa, Mastercard, or international money transfer operators, removing the need for intermediaries or physical agents.
CBE Connect was developed with StarPay Financial Services, whose StarPay app has been available on Ethiopian app stores days ago. The formal launch of StarPay as part of this collaboration in January 2026 marks a major step in combining digital payments with CBE’s banking services.
At the launch, Efrem Mekuria, acting president of the state-owned bank, highlighted that CBE Connect is a new digital financial platform helping Ethiopia modernise its banking sector while making it easier for diaspora Ethiopians to send money home. He noted the platform offers secure, legal, and convenient ways to transfer funds, expands access to other financial services including credit and trade finance, and strengthens the formalisation of remittances.
Historically, CBE has received funds from abroad through a combination of channels. Inward transfers were primarily handled via SWIFT, allowing secure interbank payments. The bank also partnered with licensed money transfer operators such as Western Union, MoneyGram, and Dahabshiil, while services like EthioDirect enabled direct digital deposits into CBE accounts or mobile wallets. Despite these formal channels, a significant portion of remittances continued to flow through informal systems, bypassing the banking system.
Ethiopia’s cross-border payment system currently allows banks and licensed operators to process incoming funds, while outbound retail payments still require approval from the National Bank of Ethiopia. CBE Connect works within this framework, providing a faster, cheaper, and fully legal channel for diaspora inflows. Under the draft National Digital Payments Strategy (NDPS 2026–2030), an “Outbound Remittance Directive” is planned, which would allow banks, payment operators, and microfinance institutions to offer outbound transfers once the country’s foreign exchange position permits.
Remittances remain a critical source of foreign currency for Ethiopia. In the first nine months of the 2024/25 fiscal year, the country received over 5.1 billion US dollars, surpassing the total for the previous year. Authorities aim to attract 8 billion US dollars in 2025/26, as part of wider efforts to formalise inflows, modernise the banking sector, and expand digital cross-border payment channels.
Despite growth, a significant portion of potential remittances still bypasses the formal system, highlighting both an opportunity and a challenge for policymakers and financial institutions.
