IFC: Consumer & Market Study In Refugee-Hosting Districts in Uganda

The International Finance Corporation (IFC), a member of the World Bank Group, in its response to the refugee crisis in Sub-Saharan Africa, commissioned a Consumer and Market Study. Specifically, the study explored economic activities, employment trends, consumption levels and consumer preference in Uganda’s largest refugee-hosting areas in the Southwest and West Nile regions.

The study geographically covered eight (8) refugee-hosting districts including Arua, Yumbe, Moyo, and Adjumani with corresponding settlements of Rhino Camp, Bidibidi, Palorinya, Adjumani respectively in West Nile; and Isingiro, Kamwenge, Kyegegwa and Hoima with corresponding settlements of Nakivale, Rwamwanja, Kyaka II, and Kyangwali respectively in the Southwest.

Objective

The main objective of the study was to gather the information that can be used to establish opportunities for private sector players to invest in the untapped economies of the refugee-hosting areas. This was a unique approach away from the humanitarian perspective that is often associated with the refugee-hosting areas.

Socio-economic data was electronically gathered at both household and business level where parameters such as demographics, incomes, expenditure patterns, consumer preferences, access to finance (savings, loans, financial institutions coverage and preferences), usage of telecommunication services, and entrepreneurial experiences among others.

The data collected was used to quantify the consumption expenditure and volume of economic activity by region and refugee-hosting district. This information was utilised through a triangulation process with existing insights and data on the economic activity in the refugee-hosting areas to establish potential economic opportunities which can be capitalised on by the private sector players.

Outcome

The markets size (annual consumption expenditure) of the refugee-hosting areas surveyed was established at USD 485 Million The West Nile region accounts for 51% (USD 246 Million) while the Southwest accounts for 49% (USD 239 Million).

The opportunities for private sector players were identified by region for both the refugees and the host community. These are in alignment with the consumption patterns and expenditure of the populations in the refugee-hosting areas; the predominant economic activities and economic advantages of the respective refugee-hosting areas; and National Development Plans.

The specific opportunities identified by region include:

West Nile Region: Maize Milling, Maize Aggregation, Cassava Milling and Chips Production, Animal Feed Production; Retail Trade, Plastic Recycling, Poultry Production, Vegetable Production

Southwest Region: Fish Cage Farming, Maize Milling, Maize Aggregation, Fertiliser Supply and Blending, Art and Crafts Production and Marketing, Plastic Recycling, Poultry Production.