Dutch Envoy Calls for Shift from Humanitarian Grants to Loans as AVSI Wraps Up Nakivale Project

What the report says

The Dutch Deputy Ambassador to Uganda, Bouwe-Jan Smeding, used the closure of AVSI Foundation’s Y-Connect project in Nakivale Refugee Settlement to urge a rethink of how aid is delivered in refugee-hosting areas. According to Nile Post, he argued that development partners should move gradually from short-term humanitarian grants toward models that encourage entrepreneurship, investment and repayment-based support.

Smeding said revolving loan funds and other market-driven tools could help refugees and host communities build more durable businesses. He pointed to examples from the project where small agricultural inputs reportedly grew into much larger earnings, but said such successes should lead to stronger support for people to operate as independent entrepreneurs rather than remain dependent on grants.

He also questioned the impact of fragmented aid, saying some communities face overlapping projects from many organizations that last only a few years. In his view, this can limit long-term change and make it harder to support local government systems. He suggested that if money is repaid and reused, more people could benefit from the same pool of funds.

The embassy’s comments come as donor funding pressures continue to shape refugee response in Uganda. The report frames the call as part of a broader debate over how to sustain livelihoods for refugees and host communities beyond the lifespan of individual projects.