• CBE introduced CBE Connect in partnership with fintech StarPay.
• The platform enables cross-border transfers and multiple financial services.
• The initiative targets formalization of remittances and financial inclusion.

Commercial Bank of Ethiopia (CBE), the country’s second-largest state-owned bank, said it has launched CBE Connect, a new digital platform developed with local fintech StarPay Financial Technologies. The application brings together more than seven financial services within a single interface.

Presented as a key tool under the Digital Ethiopia 2030 strategy, the platform allows direct transfers from international banks to fintech wallets and bank accounts in Ethiopia. These transfers can be made in several currencies, including the dollar. The application also supports bill payments, interbank transfers, daily financial management, and selected domestic investments, such as the purchase of real estate or vehicles.

CBE officials, quoted by the Ethiopian News Agency, said the platform aims to reduce reliance on informal money transfer networks. They added that it should support financial inclusion, including in areas with limited connectivity, through an offline mode.

Formalizing remittances as a macroeconomic priority

Beyond the technological launch, the initiative addresses a broader macroeconomic issue. Ethiopia is seeking to better capture diaspora remittance flows. In the 2023–2024 fiscal year, the country reported receiving more than $6 billion in remittances. As in many African countries, a significant share of these flows passes through informal channels. This limits the state’s ability to strengthen foreign exchange reserves and integrate remittances into the banking system.

By enabling direct transfers into domestic bank accounts and wallets, CBE Connect aims to formalize these flows. Such a shift could affect the balance of payments, banking system liquidity, and financial traceability.

The partnership between CBE and StarPay also reflects a wider trend across Africa. Traditional banks are increasingly teaming up with fintech firms. The goal is to combine large customer bases and institutional credibility with the technological agility of start-ups, amid rising competition from regional and global digital players. In West Africa, for example, fintech DJAMO offers a bank account and a Visa card issued by BGFI Bank, while Wave has signed several agreements with banks to provide transfers between bank accounts and Wave wallets.

This approach also seeks to preserve the customer relationship. International fintech firms increasingly target African diasporas with low-cost cross-border transfer applications.

Beyond transfers, CBE Connect positions itself as an investment channel for the diaspora. The platform facilitates asset purchases and asset management in Ethiopia. This feature aligns with a broader strategy to turn remittance flows into productive capital. This remains a key challenge for a country facing large development financing needs. However, the issue of transfer costs remains unresolved. According to the World Bank, sending $200 to sub-Saharan Africa costs about 8%, one of the highest rates globally.

Moutiou Adjibi Nourou