How Equity Bank is turning refugees into entrepreneurs through microenterprises

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When refugees settle in host countries, they hope to start a new life, be self-sufficient, and contribute to their communities.
However, building a new life is challenging, especially if it means starting a business. They may find themselves without access to credit and investment, as well as other vital products and services, which becomes a constraint on building a better life.

In the vast Nakivale refugee settlement in southwestern Uganda, Equity Bank has been trying a bold new route to support displaced people through microfinance and microenterprises.

Uganda hosts more than 1.5 million refugees in urban areas and 13 rural settlements, according to UNHCR operational data on refugee entrepreneurship in Uganda. Promoting entrepreneurship is increasingly seen as an effective way to overcome challenges to refugee economic and social inclusion.

**Officials of Uganda Equity Bank Limited interact with refugee micro-entrepreneurs**

In 2018, Equity Bank began providing financial support to refugees through social payments and safety net programs, and in 2022 it expanded its assistance to refugees by providing microcredit loans to refugee families.
The project aims to help them start micro-enterprises in the refugee camps. The seedlings planted that year have now grown and the loans have now benefited more than 400 refugee groups.

Working with 262 refugee agents, refugee groups have received agency loans worth UGX311 million. 3,662 individual refugees have also received loans worth UGX408.2 million, while refugee deposits have exceeded UGX2 billion.

Besides the fact that microenterprises help them achieve financial independence, their quality of life has also improved, helping them access goods and services beyond those supported by international agencies.

Elizabeth Mwerinde Kasedde, executive director of public sector and social investment at Equity Bank, said: “The programme is inspiring as it helps beneficiaries move from systemic dependence on aid to economic stability and self-reliance.”

**Uganda Equity Bank officials provide services to refugees**

Providing banking services to refugees and bringing them into the formal financial system has also greatly expanded their opportunities. Currently, social grants and safety net programs for refugees in Nakivale, Kyakka II, Rwamwanja, Kyangwali, Imvepi, Palorinya and Rhino Camp are provided through agent banks.

So far, UGX 135.3 billion in cash transfers have been distributed to 10 active settlements, most recently Bidibidi, Africa’s largest refugee settlement.

Additionally, 5,807 refugees received financial literacy education, with the majority receiving support to use digital inclusion tools.

“Support for refugees is part of Equity Bank’s wider social protection programme and capacity building for the poor, vulnerable and marginalized. The programme has so far reached 109,887 households and 230,000 beneficiaries,” Kasedde said.