Across Africa, hundreds of thousands of refugees have transformed their livelihoods into profitable ventures worthy of attracting corporate and private sector investment. This marks a significant shift from the past, when displaced people were largely viewed as a risk, particularly by financial institutions.
Today, evidence is emerging that refugee communities are not only surviving but also creating businesses, generating income, and contributing to local economies.
A recent report by the “Hiding in Plain Sight: Africa’s $27 Billion Displacement Market Opportunity”, estimates that displaced populations across Africa generate approximately $27 billion in annual income.
And from that $22.1 billion comes from the internally displaced persons, while refugees contribute $5.6 billion.
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Moreover, displaced persons have a 12 per cent entrepreneurship rate. However, despite this economic activity, many remain excluded from formal financial services and investment opportunities.
Let me give an example. Niyonzina Diyodon, a refugee in Bidi Bidi Refugee Settlement, together with a group of fellow refugees, established a SACCO to address the financial needs of their community. What started as a small initiative has, over the years, grown into a thriving institution with more than 12,000 members. Their journey provides compelling evidence that refugee communities are not merely recipients of aid but active participants in economic development.
Niyonzina recently shared his story with me. “Last year, we operated within a refugee settlement and disbursed loans worth UGX 48 million. We are not serving nationals; we are operating specifically within the refugee community.”
What makes this achievement remarkable is that the SACCO operates with limitations that larger financial institutions do not face.
“Despite being a relatively small institution, we achieved this without some of the advantages enjoyed by larger financial entities. For example, we are not licensed to accept deposits or offer the full range of financial services.”
According to Niyonzina, the SACCO started with a capital base of only UGX 2 million. Yet within a relatively short period, it grew its loan portfolio to UGX 48 million.
His experience raises an important question. If a small institution with UGX 2 million can generate UGX 48 million in lending within refugee settlements, what could be achieved by a microfinance institution or SACCO that is licensed to accept deposits?
The demand is already evident, mirroring what the Amahoro Coalition found across the continent.
Refugees should no longer be viewed solely through a humanitarian lens, but also as consumers, entrepreneurs, workers, producers, and investors participating in agriculture, manufacturing, trade, and services.
Refugee-led businesses are creating jobs, strengthening supply chains, and generating demand for financial products and services. Yet many remain underserved by banks, SACCOs, insurers, and investors.
This is where the opportunity lies. For years, financial institutions have approached refugee communities with caution, often citing risk, lack of collateral, or uncertainty. Yet stories such as Niyonzina’s suggest the opposite. The issue may not be the absence of a market, but rather the failure to recognise one that already exists.
The question is no longer whether refugees can contribute to economic growth. The evidence already exists. The real question is whether the private sector is prepared to stop seeing refugees as a risk and start seeing them as one of Africa’s most overlooked investment opportunities.
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The opportunity before us is clear. Financial institutions, investors, governments, and development partners must begin treating refugee communities not merely as beneficiaries of support, but as participants in economic growth.
This means expanding access to savings products, credit, insurance, and investment capital, while creating policies that enable refugee-led enterprises to formalise and scale. The entrepreneurs are already there. The demand already exists.
The market is already functioning. What is missing is the willingness to invest. If Africa is serious about inclusive growth, then it can no longer afford to overlook one of its most resilient and entrepreneurial populations. The time has come to move beyond aid and start unlocking the economic potential hiding in plain sight within refugee communities.
