Ethiopia - Dashen Bank has partnered with Thunes to facilitate cross-border payments

Ethiopia's Dashen Bank has partnered with Thunes to facilitate cross-border payments

In order to facilitate fund transfers from around the world to the Horn of Africa nation, Dashen Bank in Ethiopia has partnered with Thunes, a global payments network based in Singapore, to do business as Thunes Ethiopia.

Customers will be able to send cross-border remittances directly to Dashen bank accounts by utilizing Thunes' network of sending partners, which has operations in more than 100 countries and can process transactions in multiple currencies.

As an added feature, the service allows for real-time transfers to the Bank's mobile money solution, known as Amole wallets, which is provided in collaboration with Flutterwave.

The partnership with Dashen Bank, one of Ethiopia's leading financial institutions, has been described as "delighted" by Andrew Stewart, Thunes Global Head of Networks. “Through this partnership, our global partners will be able to provide their customers with improved access to this important corridor in Africa, including faster and more convenient transfers.”

Dashen Bank, which was established in 1995 and has its headquarters in Addis Ababa, is one of the country's largest private banks. Through its more than 400 branches, it provides traditional banking services as well as Sharia-compliant banking services.

“This technology-driven solution provides Dashen Bank's customers with fast and convenient access to overseas funds through bank accounts and Amole mobile wallets,” Asfaw Alemu, the bank's chief executive officer, said in a statement.

The cross-border payment solution is intended to increase financial participation in Ethiopia, as more people are expected to open bank and Amole wallet accounts in order to receive payments from abroad as a result of the implementation of the solution.

Due to the fact that the service is primarily used for remittances, it is anticipated to increase the inflow of foreign currency into the country's economy. Many Ethiopian communities rely on funds sent from abroad to keep their heads above water.

Dashen's move

Dashen's move comes at a time when Ethiopia is moving to open up its state-controlled economy and accelerate the integration of banks and mobile wallets.

Since the launch of the Telebirr mobile money service in May by the state-owned Ethio Telecom, the service has amassed more than six million users. This month, the platform also established a connection between its wallet and the Commercial Bank of Ethiopia and the Bank of Abyssinia.

In addition to increasing access to financial services, the government hopes to expand its participation in the local payments and international remittance markets.

In 2019, official remittances to Ethiopia totaled $4.5 billion, according to data from the National Bank of Ethiopia. This account for approximately 5 percent of the country's gross domestic product and far exceeds the revenues earned by the country's export industry.

Dashen Bank CEO Alemu described the partnership with Thunes as "another positive step towards our goal of transforming Ethiopia's financial services sector and delivering innovations to better serve our customers' needs."