Send Money to Ethiopia (in USD)

Ethiopia hosts a long-established Indian community, with around 6,000 Indians living across the country. Addis Ababa anchors the community, alongside Adama, Hawassa, Bahir Dar, and Mekelle.

Indian teachers have been part of Ethiopian education since the 1950s, and Indian academics still staff universities and schools across the regions. Alongside them, Indian investors run floriculture farms, textile mills, pharmaceutical plants, and engineering firms, making India one of the larger sources of foreign investment in the country.

These ties make sending money to Ethiopia a regular requirement. Salaries, family support, and supplier settlements are involved, and transfers are sent in US dollars, which suits a country that manages its foreign exchange tightly. The birr was floated in 2024 and has moved substantially since, so the rate applied on arrival matters more here than on a stable corridor.

Even small differences in exchange rates or fees affect the final amount received. BookMyForex helps you send money to Ethiopia with better rates, faster processing, and complete transparency at every step. 

Indian remittances to Ethiopia concentrate in the capital and the industrial corridor to its south. Addis Ababa receives the highest volume by a wide margin, home to the largest Indian community, the embassy, most corporate offices, and the African Union headquarters.

Bishoftu and Adama attract steady inflows tied to floriculture farms and manufacturing plants. Hawassa receives transfers connected to its industrial park and textile employers, while Bahir Dar, Mekelle, and Jimma see smaller flows tied to university teaching staff. Dire Dawa and Gondar receive occasional flows tied to trade, tourism, and university teaching posts. 

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Accurate beneficiary details, including the recipient's account number and the bank's SWIFT code, are essential, as Ethiopia does not use the IBAN system for incoming transfers.

Transfers from India are sent in US dollars. Ethiopia applies tight foreign exchange rules, and the receiving bank converts to birr at the prevailing official rate, so confirm in advance whether the recipient holds a foreign currency account. Most recipients bank with the Commercial Bank of Ethiopia, Awash Bank, Dashen Bank, or Bank of Abyssinia. Foreign currency accounts are restricted in Ethiopia and not every recipient will qualify for one. 

As per the Union Budget 2026, Tax Collected at Source (TCS) applies to outward remittances under LRS based on the purpose and amount of transfer. Here are the applicable TCS rates:

● Education via education loan: 0% TCS (any amount)
● Self-funded education & medical treatment: Nil up to ₹10 lakh; 2% above ₹10 lakh
● All other outward remittances: Nil up to ₹10 lakh; 20% above ₹10 lakh

Note: TCS is not a final tax, it can be claimed as credit when filing your ITR. BookMyForex auto-calculates applicable TCS at checkout so there are no surprises.

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