Description

In recent years, a large number of Ethiopians are travelling to various countries as labour migrants. The Republic of South Africa and the oil-rich Gulf countries have emerged as major destinations for many documented as well as undocumented Ethiopian labour migrants. The majority of the migrants send a substantial amounts of money back to the country for different purposes. Out of this, the largest share comes through 'informal' channels, bypassing banks and other money transfer institutions. The use of informal means of money transfer is problematic as it does often violate government financial regulations, both in the sending and receiving countries. In addition, the use of informal channels denies the country valuable foreign exchange income. This monograph examines the various channels that Ethiopian labour migrants in the Republic of South Africa and the Middle East use to send remittance money to their families; and the respective advantages and drawbacks thereof. It also looks at how remittance money is utilised by receiving families and its socio-economic impacts.