REMITTANCES TO ETHIOPIA October 27, 2010. Methodology Sample size2,412 interviews with Ethiopian...

REMITTANCES TO ETHIOPIA

October 27, 2010

2

Methodology

Sample size

2,412 interviews with Ethiopian adults

Dates of interviews

July 14 – September 4, 2010

Margin of error

2 percentage points

Language of interviews

Amharic

3

Regions

The survey was conducted in regions that represent 97 percent of the Ethiopian population.

DEMOGRAPHICS AND CHARACTERISTICS OF REMITTANCE RECIPIENTS

5

Age

18-24 25-34 35-49 50-64 65+0%

5%

10%

15%

20%

25%

30%

35%30% 30%

26%

13%

1%

30%34%

18%

13%

5%

Census

Remittance recipients

6

Gender

50%

50%

MaleFemale

55%

45%

MaleFemale

Census Remittance Recipients

7

Urban / Rural

16%

84%

UrbanRural

35%

65%

UrbanRural

Census Remittance Recipients

8

Monthly Household IncomeRemittance Recipients

Less

than

100

0 ET

B

1000

- 35

00 E

TB

3500

- 50

00 E

TB

5000

- 10

000

ETB

1000

0 ET

B or

mor

e

No an

swer

0%

10%

20%

30%

40%

50%

9%

47%

12%

23%

2%7%

9

Overall, how do you see your family’s personal economic situation in Ethiopia?Remittance Recipients

Poor

Mediocre

Good

Excellent

0% 10% 20% 30% 40% 50% 60% 70% 80%

4%

15%

78%

3%

10

What is your relationship to the person who sends you money?

Uncle, aunt, cousin, niece, nephew, or other

Son or daughter

Husband or wife

Brother or sister

Father or mother

0% 20% 40% 60%

32%

10%

5%

47%

6%

11

Do you own a mobile phone?Remittance Recipients

94%

6%

YesNo

THE STATISTICS OF REMITTANCES

13

Do you have any family members or relatives living in another country outside Ethiopia?

39%

61%

YesNo

14

Have any of your family members or relatives living in another country outside Ethiopia ever sent you money?

14%

4%

21%61%

Yes, frequently

Yes, in-frequently

No

No family members outside Ethiopia

14% of Ethiopian adults are regular remittance recipients

15

In what country does your relative live?Remittance Recipients

North AmericaUnited StatesCanada

Asia / Middle EastUAEIsraelLebanonYemenSaudi ArabiaQatar

Australia

40%35%5%

30%23%3%2%1%1%<1%

3%

EuropeEnglandGermanyItalyNorwaySwedenNetherlandsFranceSwitzerlandDenmarkGreeceSpain

22%7%5%3%2%2%1%1%1%<1%<1%<1%

Other AfricaDjiboutiSouth Africa Sudan Kenya

5%2%1%1%1%

16

How frequently does your family member or relative send you money?

2-3 times a year

4-6 times a year

12 times a year

24 times a year

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

47%

36%

15%

2%

AVERAGE: 5 TIMES A YEAR

17

How much money – on average – does your family member or relative send to you each time?

More than $500

$401 to $500

$301 to $400

$201 to $300

$101 to $200

Less than $100

0% 5% 10% 15% 20% 25% 30% 35% 40%

3%

4%

8%

15%

38%

32%

AVERAGE: US$120

18

Remittances to Ethiopia

Adult population (est.) 38,500,000

Percent receiving international remittances regularly

14%

Adult population receiving international remittances regularly

5,400,000

Frequency of remittances 5 times a year

Average remittance received US$120

Total amount per year US$3.2 billion

THE REMITTANCE PROCESS

20

How do you receive this money?

Bank Remittance company

Traveler Credit card / ATM card

0%

10%

20%

30%

40%

50%

60%

70%

21%

64%

14%

1%

21

How satisfied are you with the services of your bank or remittance company?

Very dissatisfied

Somewhat dissatisfied

Somewhat satisfied

Very satisfied

0% 10% 20% 30% 40% 50% 60% 70% 80%

0%

4%

32%

64%

22

Overall, how do you have a positive or negative opinion of the banks in Ethiopia?

95%

2%3%

Positive

Negative

Don't know / No opin-ion

RELATIONSHIP WITH REMITTANCE SENDERS

24

Did you make arrangements with this family member – that he or she would send you money – before he or she left Ethiopia?

13%

86%

1%

Yes

No

No an-swer

25

Which of the following best describes the main reason your relative who sends you money left Ethiopia?

To find a better job 85% To go to school 10% For some other reason 3% No answer 2%

26

How often do you communicate with this family member or relative – the one that sends you money?

Very rarely / Almost never

Once a year

A few times a year

Once a month

Once a week

Every day

0% 10% 20% 30% 40% 50%

0%

0%

12%

41%

46%

1%

27

For how many years has this family member or relative been sending you money?

More than 5 years

4 to 5 years

1 to 3 years

Less than 1 year

0% 10% 20% 30% 40% 50% 60%

26%

16%

56%

2%

IMPACT OF INTERNATIONAL REMITTANCES

29

Overall, how many people benefit from the money you receive from your family member or relative?

1 20% 2 21% 3 24% 4 16% 5 11% 6 3% 7 3% 8 or more 2%

30

Approximately what portion of the money you receive do you spend on daily expenses such as food, clothes, housing, utilities and medicine?

None of it

A quarter or less of it

About half of it

About three-quarters of it

All of it

0% 5% 10% 15% 20% 25% 30% 35%

14%

15%

18%

18%

34%

31

Other than daily expenses, what do you use this money for?

Daily expenses only

Housing

Savings account

Small business

University education

0% 10% 20% 30% 40% 50% 60%

57%

1%

4%

9%

29%

32

Interest in Financial Products“Very interested” answers only

Savings account 79%

Business loans 71%

University education loans 69%

Home mortgage 60%

Health or life insurance 56%

INTERNAL REMITTANCES

34

Have any of your family members or relatives living in another part of Ethiopia ever sent you money?

22%

78%

YesNo

35

How much money – on average – does your family member or relative send to you each time?

More than $100

$51 to $100

Less than $50

0% 10% 20% 30% 40% 50% 60%

18%

22%

60%

36

How do you receive this money?

Bank Remittance company

Traveler Another way0%

10%

20%

30%

40%

50%

60%

70%

80%74%

4%

20%

2%