Here are the business opportunities hiding in refugee communities

What the report says

The Observer published a viewpoint arguing that refugee communities across Africa are emerging as a significant, but often overlooked, economic market. The article says displaced people are increasingly running businesses, generating income and supporting local economies, challenging the long-standing view among lenders and investors that refugees are mainly a financial risk.

The piece cites an Amahoro Coalition report, “Hiding in Plain Sight: Africa’s $27 Billion Displacement Market Opportunity,” which estimates that displaced populations on the continent generate about $27 billion in annual income. It attributes $22.1 billion of that to internally displaced people and $5.6 billion to refugees, while also saying displaced communities have a 12% entrepreneurship rate. The author argues that refugee-led enterprises are already creating jobs, strengthening supply chains and increasing demand for financial products.

A specific example from Bidi Bidi Refugee Settlement in Uganda illustrates the point. The article describes a savings and credit cooperative founded by refugees, including Niyonzima Diyodon, which reportedly grew from a starting capital of Shs 2 million to a loan portfolio of Shs 48 million and more than 12,000 members. The group says it operates only within the refugee community and still faces limits, including not being licensed to take deposits.

The broader message is that banks, SACCOs, insurers, investors and policymakers should treat refugees as consumers, workers, producers and potential investors, not only as aid recipients. The article frames this as an opportunity for more inclusive growth and formal financial access.