Forcibly displaced persons (FDPs) are among the most vulnerable migrant communities, whether internally displaced (IDPs) or residing as foreigners in another country (Refugees). Currently, more than 122.6 million people worldwide have been forcibly displaced – a number expected to rise due to climate change, political instability, and insecurity. In West and Central Africa alone, the number of forcibly displaced persons was projected to reach 14.3 million in 2024, with 8.2 million being internally displaced. This growing crisis continues to strain already limited resources in host communities and countries that provide refuge to displaced populations. A strategic shift is needed in how host nations approach this issue from repatriation to long-term economic integration.

The Challenge of Protracted Refugee Situations

Refugees often find themselves in prolonged displacement showcasing the inadequacy of repatriation-focused policies. According to the United Nations, a refugee situation is deemed protracted when “at least 25,000 refugees from the same country have been living in exile for more than five consecutive years.” Research has shown that refugees in Kenya spent more than 26 years in displacement, often spanning multiple generations. This stagnation is caused by prolonged conflicts in refugee home countries, reluctance from third countries to resettle them, and an inability to establish economic self-sufficiency in the host nations. 

The Amahoro Fellowship is changing this by providing FDPs with access to networking, funding, and mentorship opportunities that help them build sustainable businesses. Even though economic integration has been identified as a key strategy for reducing aid dependency and fostering refugee self-reliance, the misconception that refugees are passive aid recipients rather than active economic contributors limits its potential for success. A study conducted by Rescue.org on the refugee crisis in Jordan identified four archetypes of refugees: the risk-averse, who are fearful of the state and withdrawn from the labor market; the downtrodden and desperate, who have little bargaining power; the entrepreneurial, who seek informal work opportunities; and the determined, who are hindered by a lack of information and certainty. This classification underscores that refugees are not passive aid recipients; they are actively seeking employment, entrepreneurial ventures, or economic stability. One such story is Zang Luka, a Nigerian entrepreneur from the first cohort of the Amahoro Fellowship program, who expanded ZangTech, an e-waste conversion company that creates economic opportunities for marginalized communities. Through Amahoro’s mentorship and funding, ZangTech has diverted 20 tons of e-waste from landfills, reduced carbon emissions by 2,400 kg, and created five direct jobs while generating income for 100 waste collectors. Amahoro recognizes that forcibly displaced persons possess leadership and entrepreneurial potential that, if harnessed effectively, could contribute significantly to economic growth. 

Economic Marginalization

Despite ongoing efforts to support FDPs, economic integration remains the main challenge that FDPs face in their host communities. Significant barriers hinder this process of economic integration, including challenges in obtaining identification documents and work permits, restrictive employment policies, and limited access to formal financial services. These obstacles exacerbate the economic marginalization of FDPs, preventing them from achieving financial stability and fully integrating into host countries. Host countries often implement restrictive policies where the FDPs are governed by a different legal regime compared to the locals. This could either be by limiting their access to work permits, financial services, and formal employment. This often pushes refugees to the informal economy where the majority of them are exploited and face limited opportunities for economic advancement. The lack of legal documentation further exacerbates this issue, creating barriers to entrepreneurship, financial independence, and social inclusion. 

The Amahoro Fellowship program seeks to tackle these root causes by promoting the economic integration of forcibly displaced persons into the labor market. A study of Kakuma Refugee Camp and the Kalobeyei Settlement found that the region had an annual economy exceeding $56.6 million, largely driven by the entrepreneurial activities of FDPs. The program leverages this potential by collaborating with refugee-led organizations to provide employment opportunities, direct funding, and large-scale fellowship. By providing funding, mentorship, and networking opportunities, the program fosters business growth, job creation, and long-term self-reliance, thereby reducing dependency on welfare assistance. As the largest investor into FDP-led businesses, Amahoro has invested more than $222,371 in grants through its first cohort which created 232 jobs among whom 77 were FDPs within six months. Building on this success, its second funding round allocated approximately $700,000 to youth-led FDP businesses, with an expected impact surpassing the initial cohort. These investments have not only enabled FDPs to access the labor market but also fosters economic resilience, skill development, and broader social impact.

By prioritizing economic integration through entrepreneurship and economic self-sufficiency, the Amahoro Fellowship challenges traditional narratives surrounding refugees, proving that with the right support, forcibly displaced persons can transition from dependency to economic self-sufficiency. This approach not only benefits the individuals involved but also contributes to the overall fiscal sustainability of host nations, demonstrating that investment in FDPs is not merely an act of humanitarian assistance but a strategic economic decision. Moving forward, broader adoption of such models could transform global refugee policies, shifting the focus from short-term relief to sustainable economic inclusion.

Written by: Mwanzia Muinde

March 2025