Uganda’s open-door policy and land-for-livelihood programme for refugees has been hailed as a game changer for both refugees and host communities, according to a new report.
The report, titled “Hiding in Plain Sight: Africa’s $27 Billion Displacement Market Opportunity,” says the policy has created employment and income opportunities for both refugees and host communities.
The government-led settlement model allocates small farm plots to refugees under a liberal legal framework, enabling cultivation and market participation for 1.7 million people. Investments in host districts have also gone a long way in helping refugees earn a decent living.
Infrastructure and Policy Reforms Driving Refugee Self-Reliance
The report says investments in roads, water, schools, and aid inflows have catalysed trade and employment for host communities.
Guaranteed freedom of movement and the right to work also allow the State to allocate plots, enabling land-based livelihoods, providing starter inputs, extension services, and market support, with directed financing to refugee-hosting districts to improve host community outcomes.
Although country-specific figures on revenues generated are not provided, the report estimates that Africa’s displaced population of 43.1 million people, comprising refugees and internally displaced persons (IDPs), generates about $27 billion (Shs100.8 trillion) in annual income.
“That is an economy the size of Uganda’s GDP in the 2010s, and Zambia’s today. Yet it operates almost entirely without the financial infrastructure that any comparably sized economy would take for granted,” the report notes.
The research team interviewed 36–37 percent of primary households across Africa’s displaced population and validated findings against UNHCR, World Bank, Oxford University, and ILO datasets.
Displaced Communities Seen as Active Economic Players
Mr Tito Mbathi, Head of Partnerships at Amahoro Coalition, said Africa’s displaced communities are not waiting for rescue but are innovating to overcome financial exclusion.
“They are running businesses, farming land, and moving goods across borders, with almost none of the financial infrastructure available to everyone else. That gap is where the opportunity is,” he said.
The report also highlights Uganda as Africa’s leading refugee-hosting country, with more than 1.7 million refugees, and its settlement model as a leading example of refugee economic integration.
Agriculture Training and Investment Boost Refugee Livelihoods
Data from UNHCR shows that 91 percent of refugees in Uganda live in settlements with allocated farm plots. More than 86,000 refugees were trained in agriculture in 2023 alone, while over $200 million (Shs727.8 billion) has been invested in refugee-hosting districts since 2017, benefiting both refugees and host communities.
The report concludes that Uganda demonstrates that the main constraint to refugee economic participation is not capacity or willingness, but access to land, credit, and markets.
The Omia Agribusiness Farmer Hub is among the entities highlighted in the report. The model has supported 49,000 farmers and channelled more than $413,000 (Shs1.5 billion) directly to refugee and host farmers, operating in previously high-risk agricultural corridors.
Multi-Billion-Dollar Displacement Economy Across Africa
Of the estimated $27.7 billion (Shs100.8 trillion) annual income generated by displaced populations, $22.1 billion comes from internally displaced persons, while refugees contribute $5.6 billion.
The report also shows a 56 percent labour force participation rate among displaced populations in Uganda and a 12 percent entrepreneurship rate, higher than many host community averages.
Across the continent, there are an estimated 3.4 million displaced-led MSMEs, with loan repayment rates exceeding 95 percent where credit access is provided.
Financial and Agricultural Opportunities Still Untapped
The report estimates a $3.2 billion (Shs11.7 trillion) formal financial services opportunity if displaced populations achieved access parity, alongside a $2.4 billion (Shs8.7 trillion) agricultural opportunity if land access were expanded.
It also notes that 88 percent of African countries lack formal land access frameworks for displaced populations. Displaced persons are estimated to hold $2.7 billion (Shs9.8 trillion) in formal savings, while $500 million (Shs1.8 trillion) in credit has been extended to displaced entrepreneurs.
The manufacturing output generated by displaced labour is estimated at $2.8 billion (Shs10.2 trillion), while overall business earnings potential could reach $4 billion (Shs14.6 trillion) under improved access conditions.
Invisible Economies of Displacement Remain Outside National Statistics
Despite their scale, most refugee and displaced economies are not reflected in national statistics.
“Kyangwali Refugee Settlement is home to 83,558 refugees, more people than Uganda’s city of Entebbe. Yet it is rarely recognised as an economic unit in national planning,” the report notes.
It adds that exclusion is largely driven by outdated systems that were not designed to include displaced populations, creating structural invisibility.
Banks Begin Tapping into the Displacement Economy
Financial institutions are increasingly recognising the economic potential of displaced populations.
In Uganda, dfcu Bank has partnered with the Amahoro Coalition to develop financial solutions targeting refugee and host community entrepreneurs.
Ms Maryann Wanjiku Michuki, Chief Business Solutions and Marketing Officer at dfcu Bank, said the bank is committed to expanding financial inclusion.
She noted that displaced people are already active economic participants as farmers, entrepreneurs, and customers, and that targeted financial services can help unlock further growth.
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