Press "Enter" to skip to content

Understanding the Impacts of Refugees’ on Rwandan Economy

The number of refugees displaced by civil conflict or natural disasters is on the rise. United Nations High Commission for Refugees in 2015 state that it accommodated over 15 million refugees, mostly in refugee camps in developing countries. However, refugees’ impacts on host countries are controversial and least understood.

Rwanda is considered one of Africa’s rising economic stars: for many years, its economy has grown by between 6 per cent and 7 per cent annually. However, not everyone benefits from this increased prosperity. The majority of the population still works in agriculture and earn low incomes.

In the early 2019, estimates determine that Rwanda is host to approximately 150,000 refugees. To support this number, Rwanda maintains six refugee camps and four transit and reception centres, in addition to supporting refugee integration into urban areas. Rwanda is remarkable for its inclusive approach to refugees, most of whom are from Burundi and the Democratic Republic of Congo.

Rwanda currently hosts over 149,000 refugees and asylum-seekers from Burundi and the Democratic Republic of the Congo (DRC), who constitute 1.2% of the country’s population. As the Burundi refugee crisis approaches its fifth year, the situation has stabilized and the influx of refugees from Burundi has been slow over the last two years.

Refugees in Rwanda for protracted periods experience long-term economic, social, political, and environmental impacts. From the moment of arrival, refugees may compete with local citizens for scarce resources such as water, food, housing, and medical services.
For instance, the economic impacts of refugees on host-country economies within a 10-km radius of three Congolese refugee camps in Rwanda. The study reveals that cash aid to refugees creates significant positive income spillovers to host-country businesses and households. An additional adult refugee receiving cash aid increases annual real income in the local economy by $205 to $253, significantly more than the $120–$126 in aid each refugee receives. Trade between the local economy and the rest of Rwanda increases by $49 to $55. The impacts are lower for in-kind food aid, a finding relevant to development aid generally.

A recent data published by the United Nations High Commission for Refugees (UNHCR) reveal that;

  • Refugees boost trade between the local economy and the rest of Rwanda , by $49 to $55 per refugee per year
  • 34-47% of refugees in camps have some wage income
  • On average a camp-based refugee has an income of USD 73 per year in addition to received aid
  • 8-13% of refugees in camps own a business

Refugee entrepreneurship supports sustainable livelihoods and resilience among refugee and host communities, while fostering social cohesion and offering a win-win scenario, both for the socioeconomic situation of the host country and the refugees themselves.

Be First to Comment

Leave a Reply

Mission News Theme by Compete Themes.