Aid on Spreadsheets

Refugee's Market Assessments for Financial Inclusion in Uganda and Jordan

Approximately 70% of the global refugee population are today living in protracted situations lasting an average of 17 years. International aid alone is not enough to sustain these populations, and innovative solutions of helping affected populations secure their livelihoods are sought. One way of doing this is increasing refugees access to financial services and formal credits, as the lack of access to financial services can act as an impediment in improving and strengthening the economic empowerment of individuals, especially for those already poor and/or otherwise vulnerable. Microfinance entrepreneurial loans have over the past decade served marginalized and vulnerable populations worldwide, but they have not yet been properly introduced in protracted refugee settings. Sida is together with Grameen Credit Agricole Foundation (GCAF) and UNHCR planning to set up a partial credit guarantee intervention for a financial inclusion programme, which aims at improving access to credit for refugees and host communities in Uganda and Jordan for income generating activities and possibly consumption smoothing. The programme will follow a market-based approach which involves partnering with the Foundation, whom will be providing debt funding to three to four selected Financial Service Providers (FSPs). The FSPs will in their turn extend their credit products to refugees and host communities. As an initial step in the establishment of the financial inclusion programme, the Foundation and UNHCR, have launched a market assessment study with the objective of Understanding the need and market potential of credit for refugees; Promoting livelihoods and improve resilience of refugees and host communities. For the study, the Foundation and UNHCR wish to appoint a qualified consultant to conduct the assessments, which should constitute an in-depth analysis of the demand for financial and non-financial products and services among refugees and their host communities in the selected geographical areas, with the aim of gaining a robust understanding of this market’s unmet financial needs and opportunities for FSPs of serving them. The assessment will also look at challenges and barriers, including aspects of doing no harm and conflict sensitivity, as well as more technical aspects of client’s affordability and credit worthiness through for instance a cash flow analysis. The main findings of the assessments will be made public, so that other providers on the market can gain an understanding of the business case of serving refugees and hopefully open up for an extension of available financial services offered refugees thus strengthening their livelihood opportunities. The main contribution, to which the findings of this report will be relevant and to which this particular component is preparatory, has been considered in line with the State Aid regulations. For a contribution to be deemed as state aid it must contain all of the following conditions: 1. Aid is given by a government and with governmental funds 2. Aid may affect the market balance and competition 3. The aid gives a company either economical or productivity advantages 4. The aid affects the trade balance between involved member states. We do not consider all the mentioned conditions to be met in this contribution.

Project ID

SE-0-SE-6-12033A0101-UGA-72050

Activity status

2 - Implementation

Aid type

C01 - Project-type interventions

% to Uganda

100.00

Organisations

Implementing

United Nations agency, fund or commission (UN)

Funding

Sweden

Extending

Swedish International Development Cooperation Agency

Accountable

GRAMEEN CREDIT AGRICOLE MICROF

CRS code	%
Relief co-ordination; protection and support services (72050)	100.0