Africa’s 43.1 million displaced people generate an estimated $27 billion (Shs99.9 trillion) in annual income, according to a new report released by the Amahoro Coalition, challenging perceptions that refugees and internally displaced persons are solely dependent on humanitarian assistance.
The report, titled The Opportunity in Displacement: Africa’s Untapped Investment Frontier, argues that displaced populations represent a significant but largely overlooked economic market with substantial investment potential.
According to the findings, displaced people across the continent are actively engaged in business, agriculture, trade and other income-generating activities despite facing limited access to financial services, credit, formal markets and investment.
“Africa’s displaced communities are not waiting for rescue. They are running businesses, farming land and moving goods across borders, with almost none of the financial infrastructure available to everyone else,” said Tito Mbathi, Head of Partnerships at Amahoro Coalition.
The report estimates that internally displaced persons account for $22.1 billion (Shs81.8 trillion) of the annual income generated, while refugees contribute $5.6 billion (Shs20.7 trillion).
Researchers found that displaced populations have a 56 percent labour force participation rate, a 12 percent entrepreneurship rate and operate an estimated 3.4 million micro, small and medium enterprises (MSMEs) across the continent.
The study also highlights significant untapped opportunities, including a potential $3.2 billion (Shs11.8 trillion) formal financial services market and a $2.4 billion (Shs8.9 trillion) agricultural opportunity if displaced populations gain better access to land and financial services.
Uganda was cited as a leading example of how policies supporting refugee self-reliance can unlock economic participation. The country hosts more than 1.7 million refugees, the highest number in Africa.
According to the report, 91 percent of refugees in Uganda live in settlements where they are allocated land for farming, while more than 86,000 refugees received agricultural training in 2023.
The report notes that over $200 million (Shs740 billion) has been invested in refugee-hosting districts in Uganda since 2017, benefiting both refugees and host communities.
Amahoro Coalition argues that the main barrier facing displaced populations is not a lack of capacity or willingness to work, but limited access to land, credit and markets.
The report further reveals that more than 88 percent of African countries lack formal land access frameworks for displaced populations, restricting their ability to contribute fully to local economies.
The coalition is calling for increased private sector investment in entrepreneurship, agriculture, finance, supply chains and manufacturing in displacement-affected communities, saying these sectors offer both commercial returns and social impact.
Researchers contend that recognising displaced communities as economic actors rather than aid recipients could unlock new opportunities for growth across the continent.