Uganda is globally recognized for its progressive refugee policy. The country allows refugees to work, move freely, and access public services such as health and education. As of June 30, 2025, Uganda hosted over 1.9m refugees.
A report by the United Nations High Commissioner for Refugees 2025, indicates that these refugees are primarily from South Sudan (52.7%) and Democratic Republic of Congo (32.7%). Sudan, Eritrea, Somalia, Burundi, and Rwanda among other countries make up the rest.
This makes Uganda the largest refugee-hosting country in Africa. However, the economic dimension of refugee inclusion remains underexplored in both public discourse and national planning frameworks. While Uganda’s approach is often admired as a model, the time has come to move beyond shelter and address the long-term economic integration of refugees, not only as a humanitarian imperative but as an economic opportunity.
This is important, as global donor support, including from USAID closure, dries up. Serious concerns have emerged on whether Uganda can sustain its generosity to refugees while providing support needs to host communities.
Uganda is also a signatory to the Global compact on refugees, committing to the Comprehensive Refugee Response Framework (CRRF), which seeks to bridge humanitarian aid and development planning. Despite this enabling legal framework, implementation gaps remain. Refugees often face difficulty accessing capital, and formal employment.
Economic hubs
According to a World Bank report 2021, refugee settlements in Uganda often act as economic hubs, increasing demand for goods and services in host districts. For example, markets around Bidi Bidi and Nakivale settlements have grown significantly due to refugee consumer spending. Moreover, refugee entrepreneurs frequently employ both fellow refugees and host community members, creating micro-enterprises that generate livelihoods. Additionally, refugee women have increasingly engaged in petty trade and agribusiness, with support from various NGOs.
Despite these contributions, many refugees still face several challenges, including limited access to credit and finance, lack of collateral or national ID cards, required to access formal banking systemsland pressure and disputes. Refugees lack vocational training and education linkages. Furthermore, roads, water, and market facilities in refugee-hosting areas remain underdeveloped, and this reduces their access to economic opportunities.
Refugees are able to start small enterprises to sustain themselves. Photos/UNHCR
Long-term self-reliance
To achieve long-term self-reliance among refugees, the Ugandan government must shift from a purely humanitarian response to a developmental approach. This means embedding refugee economic integration within national planning frameworks, especially through NDPIV, and aligning it with host community development priorities.
Financial inclusion can be strengthened by working with commercial banks and fintechs to roll out digital ID-linked micro-credit services. Refugee entrepreneurship should be supported through dedicated business incubation centres, tax incentives, and access to public procurement platforms. These efforts can be partially realized through pipeline projects like the Dairy Market Access and Value Addition Project (2025/26–2029/30), worth UGX 53.6 billion, targeting sub-regions such as West Nile and Ankole that host large refugee populations.
In terms of skills development, the ongoing Uganda Skills Development Project in Refugee and Host Communities (2023/24–2027/28), funded by government and estimated at Ug.Shs. 50.4 billion, provides a model that should be expanded to more settlements under the Human Capital Development programme. Similarly, vocational training and skilling initiatives must be integrated into national TVET strategies, explicitly including refugees and host youth as target beneficiaries.
Investment in infrastructure remains crucial. The upgrading of Pakwach and Nebbi town roads (33 km), alongside other ongoing road works in refugee-hosting districts (RHDs), demonstrates government commitment, but further expansion is needed. Future efforts should leverage development aid and blended financing models to improve market facilities, rural roads, and ICT infrastructure. Projects like the Enhancing Agricultural Production and Market Access Project (2026/27-2030/31), with an estimated cost of UGX 800 billion, can benefit both host and refugee farmers by building standards, irrigation, and value chains under the Agro-Industrialization programme.
While these projects are promising, implementation remains slow and underfunded. Uganda’s refugee model must evolve, from protection to productivity. By recognising refugees as economic agents, the country can unlock a triple dividend: self-reliance for refugees, improved outcomes for host communities, and sustainable national development.
