As Aid Budgets Shrink, Refugees in East Africa Show a Path to Self-Reliance

In East Africa, refugee families are demonstrating a path toward self-reliance, proving that economic opportunity can be as vital as humanitarian aid. From Bidi Bidi in Uganda to Dollo Ado in Ethiopia, programs are empowering displaced individuals to build sustainable livelihoods.

Viola, who fled South Sudan with her infant daughter, arrived in Uganda's Bidi Bidi Refugee Settlement with nothing, facing hardship and uncertainty. Similarly, Nurina, a refugee from Somalia living with a disability in Ethiopia's Dollo Ado settlements, felt isolated and underestimated. Both women, however, now tell stories of empowerment: Viola owns a hair salon, and Nurina earns an income, supports her children, and advises neighbors on improving their livelihoods.

Their experiences are part of the larger impact of the Delivering Resilient Enterprises and Market Systems (DREAMS) program, implemented by Village Enterprise and Mercy Corps. This initiative has reached over 22,000 refugee and host-community households across Uganda and Ethiopia. The program's effectiveness was recently validated by two large randomized controlled trials involving 12,711 households, representing one of the most comprehensive studies on refugee livelihoods in the region.

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I had to carry my one-year-old daughter, and our hunger and fatigue made the journey even harder. We arrived in Uganda with nothing.

The findings, released on June 10, arrive at a critical juncture for global humanitarian efforts. As conflicts, economic instability, and climate change increasingly displace populations, humanitarian funding has not kept pace with the escalating needs. The United Nations estimates millions worldwide live in displacement for years, even decades. The aid system, however, was not designed for indefinite support.

This new evidence offers a compelling argument that refugees can transition from aid dependency when provided with the necessary skills, capital, and market opportunities. In Uganda, where over 1.8 million refugees reside alongside local communities, the study by IDinsight revealed particularly striking results for participating households. The research underscores the potential for refugees to achieve economic independence and contribute to their communities, challenging the traditional model of long-term aid.

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Because of my disability, I used to prefer to stay in one place. I felt isolated. My neighbours used to underestimate me, and I wasn't perceived as important.