Private sector encouraged to invest in refugee settlements

The Private Sector Foundation Uganda (PSFU) has called upon entrepreneurs to invest in refugee settlements and host communities around the country.

The call was made last week following the release of a study that evaluated Private Sector Investment and Youth Work Opportunities in refugee settlements and host communities.

According to this study carried out by PSFU and MasterCard Foundation in Nakivale, Bidi Bidi and Kampala, business opportunities in refugee settlements and host communities exist in sectors such as agriculture, wholesale and retail trade, tourism and hospitality, construction, financial services, energy and lighting and vocational skills training.

Speaking at the launch of the report, Sarah Kagingo, the vice chairperson of PSFU, noted that the high population of refugees in Uganda, currently at 1.5 million, offers immense opportunities for business community in form of a market for their products and services.

She added that the annual consumption expenditure of $485 million (Shs 1.7 trillion) presents a huge potential to develop agribusiness value chains, formalize access to finance and engage private companies in the provision of renewable energy products.

“The participation of local businesses in the refugee spaces is still limited and so we sought to understand what lies underneath the surface so that we can build an enabling environment. We do believe that the report findings will be used to inform our work in ensuring that exploit these opportunities for business, investment, and creation of work opportunities,” Kagingo said.

Despite the immense opportunities, the study showed that investment in the refugee settlements and host communities has been constrained by bureaucracy in accessing permission from the Office of the Prime Minister to invest in refugee settlements, discrimination where some of the youth are denied work due to their nationality status,  poor infrastructures to support economic development and low education qualifications by most youth in refugee and host communities necessary to obtain even the limited work opportunities.

Through skills training programs by NGOs and CSOs in refugee settlements, the refugees already have the skills to work in businesses such as retail, tailoring and knitting, hairdressing and beauty, bakery and confectionery, carpentry, hotels and restaurants, transportation, construction and masonry, clinical and health services, animal and crop production, garment sales and financial services and therefore present readily available cheap labour. 

However, they (refugees) say they face challenges such education limitations to improve on their skills and discrimination and mistrust from employers as they think that since they are refugees, they may leave anytime. Stephen Asiimwe, the executive director of PSFU, encouraged private sector players to seize the investment opportunities in these communities.

“The 1.5 million population of refugees provides a substantial constituency that can engage in various businesses. I therefore urge business communities to explore the possibilities of supplying goods to this environment. PSFU has set up a dedicated desk for the business community to inquire about the available opportunities in these settlements.”

He added that this will not only uplift local businesses but also empower refugees to improve their livelihoods since the model has changed from giving them remittances to technical skills to support themselves noting that previously, refugees had been staying for shorter periods but now that they stay longer, it has created the need for them to get involved in activities such as farming and agri-business, retail trade, hospitality among others.

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