Compare rates and fees for sending money to Ethiopia
There are multiple ways to easily send and receive money in Ethiopia but these will largely depend on the provider you decide to use.
How can I pay for my money transfer to Ethiopia?
Paying for a money transfer depends on the provider, but most apps allow users to pay using one or more of the following methods:
Bank transfer: Bank transfers are the most straightforward method and can even be the cheapest; just make sure you check the transfer times, as bank transfers aren’t as fast as some other methods
Credit card: Paying with a credit card can streamline the transfer process, though some credit card companies charge additional fees for currency conversion or cash advance fees when sending money outside the USA; if you forget to pay your credit card balance on time, you could end up owing more in interest payments
Debit card: Debit cards help you avoid the possibility of interest charges, but some debit card providers still charge fees for currency conversions and other charges
Digital wallets: Some providers allow you to pay using a digital wallet like Google Pay or Apple Pay, which can also streamline the process
What is the best way to send money to Ethiopia?
Overall, the best way to send money to Ethiopia is through a money transfer app, completing the payment using a bank transfer. This method is even better because apps like Western Union and Capital One offer competitive exchange rates with no transfer fees.
While bank transfers are efficient, most providers permit payment using a credit or debit card. However, you may have to deal with additional currency conversion or cash advance fees, which can add to your total costs.
How long does it take to send money to Ethiopia?
Your transfer time can be influenced by the following:
The transfer provider
The amount you send (more significant amounts take longer for security reasons)
When you initiate the transfer
Your bank may also have a cut-off time. If you initiate the transfer after this deadline, your transfer won’t be completed until the following business day.
Many money transfer apps offer varied transfer times, such as:
WorldRemit: A few minutes
Western Union: One to two hours
Capital One: Three to five days
Note that these transfer times can vary, especially if you exceed the $2,000 used in the above estimates.
What is the fastest way to send money to Ethiopia?
Almost invariably, money transfer apps provide the fastest method of transferring money to Ethiopia. The fastest provider overall is WorldRemit, which allows users to send money within minutes for a nominal fee.
You might also consider cash pickups. With a cash pickup, users send funds to an approved agent or institution, and recipients can receive their money within minutes. Many money transfer apps have location tools to help users find a qualified agent.
Sometimes, a credit or debit card payment can streamline the process. However, users may encounter currency conversion fees, cash advance fees, or even interest charges.
If possible, avoid making transfers over the SWIFT network. Doing so can create delays, as your money will bounce around between intermediary banks and institutions, which can also serve to compound your fees.
MoneyTransfers.com can help you find the best money transfer provider. Use the search tool to compare rates and terms today.
How much does it cost to send money to Ethiopia?
Sending money overseas will entail several fees, including:
The transfer itself
Any additional fees
The exchange rate
In this case, you’ll convert between the American dollar and the Ethiopian Birr. Your exact exchange rate will vary between providers.
WorldRemit: 53.1785 (you send $2,000, they receive ETB 106,357)
Western Union: 53.2937 (you send $2,000, they receive ETB 106,587.38)
Capital One: 52.7443 (you send $2,000, they receive ETB 105,488.54)
Western Union offers the best exchange rate, even though it’s slightly slower than WorldRemit.
As you research money transfer providers, differentiate between fixed and percentage fees, which can vary depending on the amount you send or your chosen payment method.
You’ll also see that exchange rates are compared to the “mid-market rate.” This is the midpoint between the selling/buying price of foreign currency and forms a baseline for comparing exchange rates.
Start comparing exchange rates by using the search tool on MoneyTransfers.com.
What is the cheapest way to send money to Ethiopia?
The cheapest way to send money to Ethiopia is by using a money transfer provider and paying using a bank transfer. Some providers, such as Western Union, even allow you to send money without fees.
If price is an issue, avoid payments that use the SWIFT network. Otherwise, your money may be transferred between multiple intermediary banks, each of which can charge its own fee.
Similarly, credit cards and debit cards can bring additional currency conversion charges or cash advance fees, and you may accrue interest if you don’t pay your balance immediately.
What do I need to send money to Ethiopia?
Your money transfer provider will request some basic information before sending money to Ethiopia. This will include the following:
Your personal information: When you sign up with a money transfer app, you’ll enter your name, address, and contact information, then upload a photo ID; once this information is loaded, you can simply sign in to send additional payments
Your recipient’s information: You’ll need the recipient’s full legal name, address, contact details, and banking information, including the SWIFT code to identify their bank, their bank account number, and the address of the receiving bank — Ethiopia doesn’t use IBAN numbers, so you’ll need to ensure that you have the correct details about the receiving bank
Method of payment: The cost of your transfer is usually due on the spot; money transfer apps allow you to pay using bank transfers, credit or debit cards, or a digital wallet
What do I need to receive money in Ethiopia?
Recipients must have a valid way to receive money, such as a bank account or digital wallet, and will also need a valid photo ID, such as:
Ethiopian driver’s license
Passport
Ethiopian ID card
Recipients should also communicate their banking details clearly to senders to prevent errors that might jeopardize the transfer.
Do I pay tax on money transfers to Ethiopia?
The USA sets a gift allowance of $17,000 (or $34,000 for married couples filing jointly). Senders won’t pay tax on gift amounts sent to Ethiopia unless they exceed this $17,000/$34,000 limit.
Senders will pay tax under the following conditions:
They exceed the gift allowance limit
They have a foreign bank account containing $10,000 or more
Their business sends more than $10,000 during the tax year
Ethiopian recipients won’t pay tax on gifts. However, any money they receive as part of a business transaction must be reported as “worldwide income.”
That said, only legal residents of Ethiopia are required to pay tax on worldwide income, while others are still held to Ethiopian-sourced income. Ethiopia employs a progressive tax that ranges from 0% to 35%.
What reasons do people send money to Ethiopia?
Historical conflicts have prompted Ethiopians to leave the country in waves. As a result, there are over 2.5 million Ethiopians living outside the country today, including 305,800 residing in the USA.
The region remains unstable, so the USA has issued travel advisories due to high crime rates, civil unrest, and a looming terrorist threat.
But these same conditions might make it necessary to transfer money to residents of Ethiopia. This money can be used to cover the following:
Housing or relocation
Medical bills
Debt repayment
Travel expenses
Tuition and educational expenses
Business and investments
Although the USA advises against travel to Ethiopia, money transfer apps remain a convenient way to support friends and family in the country.
Sending money to major banks in Ethiopia
Ethiopia boasts many banking institutions, including:
Commercial Bank of Ethiopia
Dashen Bank
Oromia International Bank
Bank of Abyssinia
Cooperative Bank of Oromia
Nib International Bank
Zemen Bank
Wegagen Bank
Enat Bank
Receiving banks can help facilitate overseas bank transfers or even cash pickups. You’ll need to check with each bank to determine available services.
The USD to ETB exchange rate
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What apps can I use to send money to Ethiopia?
You can send money to Ethiopia using apps like:
WorldRemit
Western Union
Capital One
Recipients don’t even need a bank account. They can receive funds through a digital wallet, such as:
Amole
HelloCash
E-Birr
Sahay
Use the search tool on MoneyTransfers.com to find the best money transfer provider and compare fees, exchange rates, and transfer times.
Useful links for Ethiopians abroad
Ethiopians living abroad may benefit from the following links:
Don’t forget to bookmark MoneyTransfers.com, which contains lots of helpful information about how to make money transfers and other topics.
Sending different amounts of money to Ethiopia
Here’s what to expect when sending money to Ethiopia, depending on how much you plan to transfer.
Sending under $1,000 to Ethiopia
Money transfer apps allow you to send money quickly and with minimal fees. Apps like WorldRemit, Western Union, and Capital One make sending small amounts of money possible with no hassle.
Sending $1,000 or more to Ethiopia
MoneyTransfers.com provides reviews of money transfer apps based on sending $2,000 or less. Once you go over this amount, you may encounter some transfer limits.
For example, WorldRemit only lets you send up to $9,000 in a 24-hour period, and even then, you can only send $5,000 per transaction.
Western Union requires verification before you can send large amounts. Prior to this, you can only send $3,000.
Sending $10,000 or more to Ethiopia
For transactions over $10,000, WorldRemit will no longer be an option unless you break payments into smaller amounts and take a few days to transfer the total amount.
Once verified, Western Union will let you send up to $50,000. Capital One will also allow you to send up to $50,000 in a wire transfer.
Sending $100,000 or more to Ethiopia
The largest transfers may require the assistance of a broker like TorFX or Currencies Direct. Alternatively, you can make multiple transfers using the apps listed above.
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