Ethiopia’s Money-Transfer Restriction Raises Alarming Questions for Somali Customers

Addis Ababa (WDN) – Somalia’s money-transfer companies (Hawala), a vital financial lifeline for Somalis around the world, connecting the diaspora to families, communities, and businesses, have faced significant financial restrictions from the Ethiopian government, threatening an important channel for remittances and cross-border financial support.

Ethiopia’s National Bank has issued a striking warning against 17 money-transfer companies operating without authorization to provide remittance services inside the country, exposing a regulatory gap that could leave thousands of customers vulnerable to financial loss, frozen funds and legal complications.

Among the companies named by the National Bank of Ethiopia (NBE) are seven Somali-owned or Somali-associated money-transfer businesses: Taaj Financial Service, Amal Express, Tawakal Money Services, Amana Express, Ramad Pay/Ramada, Jubba Express and Pay (Kaah). The warning raises an important question: How have money-transfer companies been allowed to serve customers in Ethiopia without the required authorization from the country’s financial regulator?

The NBE cautioned that customers using unlicensed operators could face delayed transfers, financial losses and blocked accounts. It also warned that both senders and recipients could potentially face administrative or legal consequences when using unauthorized services.