Partnership for improving prospects for forcibly displaced persons and host communities (PROSPECTS) in Ethiopia

The second-largest refugee-hosting country in Africa

Ethiopia has a long-standing history of hosting refugees and maintains an open-door policy for refugees seeking protection in its territory. The country recently updated its existing national refugee proclamation, making it one of the most progressive in Africa.

According to the latest UNHCR data from July 31, 2025, Ethiopia hosts 1,094,380 refugees and asylum seekers. The majority of refugee populations are from South Sudan (40.7%), Somalia (33.0%), Eritrea (16.5%), and Sudan (8.8%). Most refugees come from low-income agro-pastoralist backgrounds, with low literacy levels and limited modern technical skills. Children, adult women, people with disabilities, and the elderly make up a significant portion of this population and are considered particularly vulnerable.

Where PROSPECTS works

The PROSPECTS Partnership, which includes the ILO, UNICEF, UNHCR, the World Bank, and IFC, is active in the following areas:

• Somali Region: A major refugee-hosting area with long-established camps and settlements, where the Partnership supports livelihoods, enterprise development, skills development and market linkages.
• Amhara Region: An area affected by displacement and recovery needs, where efforts focus on expanding economic opportunities and strengthening systems for inclusive development.
• Addis Ababa: The capital city, home to growing numbers of urban refugees and returnees, where the Partnership promotes access to training, jobs and enterprise development.

However, PROSPECTS interventions extend beyond these areas, as support for economic opportunities and market linkages often reaches other refugee-hosting regions.

Building stronger futures

The PROSPECTS Partners work together to support government-led efforts to strengthen systems and implement policies that promote inclusion and economic development for refugees and host communities. We collaborate closely with local authorities, businesses, and communities to identify and maximize opportunities.

The focus is on building resilience, expanding opportunities, and ensuring that both refugees and host communities can thrive together.