Africa's Displaced Population Generates Over Shs100 Trillion Annually, Report Reveals

A groundbreaking report titled “Hiding in Plain Sight: Africa’s $27b Displacement Market Opportunity” highlights the significant economic contributions of displaced populations across the continent. The study reveals that an estimated 43.1 million refugees and internally displaced persons (IDPs) generate approximately $27 billion (Shs100.8 trillion) annually.

This economic output is remarkable given the lack of formal financial infrastructure available to these communities. The report notes the absence of banking sectors, formal retail chains, and structured access to credit, despite the comparable size of this economy to nations like Zambia. The research team validated its findings using data from UNHCR, the World Bank, Oxford University, and the ILO.

Uganda’s “land-for-livelihood” policy for refugees has been specifically lauded. This model, which provides small farm plots and a supportive legal framework, enables economic participation for roughly 1.7 million people. Investments in local infrastructure such as roads, water, and schools have further catalyzed trade and employment for host communities. Uganda hosts over 1.7 million refugees, the most in Africa, and its model is frequently cited as an example of successful economic integration.

The report further breaks down the income generation, with IDPs contributing $22.1 billion and refugees adding $5.6 billion to the total. Uganda demonstrates a particularly high labour force participation rate (56%) and entrepreneurship rate (12%) among its displaced population.

Despite these substantial economic activities, many refugee economies remain invisible in national statistics. The report points to documentation requirements and regulatory frameworks designed for settled populations as barriers to inclusion. However, this invisibility also represents an opportunity for early-mover investors willing to navigate these challenges.

Financial institutions are beginning to recognize this potential. In Uganda, dfcu Bank is partnering with the Amahoro Coalition to develop financial products tailored for displaced entrepreneurs, aiming to unlock access to credit and markets.

“This report reinforces what we see across Uganda: displaced people are not only participants in the economy, they are entrepreneurs, farmers, customers and partners in growth,” stated Maryann Wanjiku Michuki, Chief Business Solutions and Marketing Officer at dfcu Bank. The bank’s commitment is to support practical financial solutions for both refugees and host communities.

Source: Daily Monitor (Uganda)