Refugees, displaced persons generate $27 billion economy in East Africa
The Development Finance Company of Uganda (DFCU) Bank chief business solutions officer, Ms Maryann Michuki (left), speaks during discussions on private sector investment opportunities among refugees at the launch of the report Hiding in Plain Sight: Africa’s $27 billion Displacement Market Opportunity at Serena Hotel, Kampala, Uganda. At centre is the DFCU Foundation executive director, Ms Mable Ndahula, and Amahoro Coalition strategic custodian for partnerships, Mr Tito Mbathi (right). PHOTO | COURTESY
Dar es Salaam. Refugees and internally displaced persons (IDPs) across East Africa generate an estimated $27 billion annually through economic activity, a new report has revealed.
The study by Uganda-based Amahoro Coalition, in partnership with The Development Finance Company of Uganda Group (DFCU) Bank, found that displaced communities make significant contributions to regional economies through business, agriculture, and services.
Launched last week, the report says the estimated economic output is comparable to Uganda’s gross domestic product (GDP) in the early 2010s or Zambia’s current economy.
However, despite the scale of their contribution, many displaced communities continue to operate without the financial infrastructure needed to support an economy of that size.
The report notes that access to banking services, formal retail systems, and credit facilities remains limited, constraining growth and expansion opportunities.
“Displaced communities across Africa run businesses, engage in farming, and participate in cross-border trade, but they do so without the financial infrastructure available to others. This presents a major investment opportunity,” said Amahoro Coalition head of partnerships, Mr Tito Mbathi.
The report identifies investment opportunities in five key sectors: entrepreneurship, agriculture, financial services, transport and supply chains, and manufacturing.
The findings are based on market assessments, baseline data, and business models that have already demonstrated commercial viability.
In partnership with DFCU Bank, one of Uganda’s leading financial institutions, Amahoro Coalition is working to translate the findings into financial products and support mechanisms for displaced entrepreneurs in refugee settlements across Uganda.
With a network of 57 branches and expertise in small and medium-sized enterprise (SME) and agribusiness financing, DFCU Bank says it is well placed to support displaced communities.
DFCU Bank chief business solutions and marketing officer, Ms Maryann Michuki, said the institution remains committed to advancing financial inclusion.
“This report confirms what we are witnessing in Uganda. Displaced people are not just participants in the economy; they are entrepreneurs, farmers, consumers, and development partners,” she said.
“Through our partnership with Amahoro Coalition, we are committed to developing financial solutions that improve access to credit, markets, and business growth opportunities for refugees and host communities,” added Ms Michuki.
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