Ethiopia’s Commercial Bank of Ethiopia (CBE) has launched a new digital platform called CBE Connect. The new app is designed to help Ethiopians living abroad send money home more easily, safely, and directly.
CBE built the platform with StarPay Financial Technologies, a local fintech company. Together, they created one app that brings more than seven financial services into one simple place.
The launch is part of the government’s long-term plan called Digital Ethiopia 2030, which aims to modernize banking and expand digital access across the country.
What Can You Do With CBE Connect?
CBE Connect allows people living outside Ethiopia to send money straight from international banks into Ethiopian bank accounts or digital wallets. These transfers can be made in several currencies, including the US dollar.
But the app does much more than send money.
With CBE Connect, users can:
- Pay electricity, water, and other bills
- Transfer money between Ethiopian banks
- Track daily spending
- Manage personal finances
- Invest in assets like homes, land, or vehicles inside Ethiopia
CBE says the app also includes an offline mode, which means some services can work even when internet access is weak. This is important for users in rural areas or places with unstable connectivity.
Why This App Is Important for Ethiopia
Money sent home by Ethiopians living abroad, known as remittances, plays a huge role in the country’s economy.
In the 2023–2024 fiscal year, Ethiopia received more than $6 billion in remittances. That money helps families pay for food, school, healthcare, and housing.
However, a large part of this money still moves through informal channels, such as unregistered agents or personal contacts. While these methods may feel faster, they are risky and hard to track.
When money flows outside the banking system:
- The country loses valuable foreign currency
- Banks cannot use the funds to support loans and businesses
- The government cannot plan properly around national income
CBE Connect is meant to solve this problem by making it easier for people to use formal banking channels.
Bringing Remittances Into the Formal System
By allowing money to move directly into bank accounts and wallets, CBE Connect helps formalize remittance flows.
This is important for Ethiopia’s economy. Formal remittances:
- Strengthen foreign exchange reserves
- Improve banking system stability
- Increase transparency and trust
For the government, this means better data and stronger financial planning. For banks, it means more deposits and more ability to lend. For families, it means safer and more reliable transfers.
Banks and Fintechs Are Joining Forces
The partnership between CBE and StarPay reflects a wider trend across Africa.
Traditional banks have large customer bases and strong trust. Fintech companies bring speed, innovation, and smart technology. By working together, they can offer better digital services and compete with global platforms.
In West Africa, fintech firms like Wave and DJAMO already work closely with banks to link wallets and bank accounts. Ethiopia is now following the same path.
This strategy also helps local banks protect their relationship with customers, especially as international apps target African diaspora communities with low-cost transfer services.
Turning Diaspora Money Into Investment
CBE Connect is not just about sending money for daily needs. It also allows Ethiopians abroad to invest back home.
Through the app, users can buy assets and manage investments inside Ethiopia. This supports a larger national goal: turning remittances into productive capital that helps build the economy.
For a country with major development needs, this shift could make a big difference over time.
One Big Challenge Still Exists
While the app solves many problems, one challenge remains: transfer costs.
According to the World Bank, sending $200 to sub-Saharan Africa costs around 8%, one of the highest rates in the world. If fees remain high, some users may continue using informal channels.
Reducing costs will be key to the long-term success of platforms like CBE Connect.
The Bigger Picture
CBE Connect shows how African banks are changing.
Instead of watching money move outside the system, Ethiopia’s biggest bank is building modern tools to bring it back in safely, digitally, and with purpose.
If widely adopted, CBE Connect could reshape how Ethiopia’s diaspora supports families, invests in the country, and connects with the economy.
For readers following Africa’s digital finance journey, this is a story worth watching and returning to.
