Layla Abdi, a Somalian refugee in Ethiopia, one of the first users of Aisha product.

Ethiopia

Employment

Layla Abdi, a Somalian refugee in Ethiopia, one of the first users of Aisha product. © ILO/Zelalem Alemenew Desta

Objective

To foster sustainable livelihoods and economic resilience, the ILO is strengthening entrepreneurship ecosystems and expanding access to social protection. Through business plan competitions, financial inclusion initiatives, and institutional partnerships, PROSPECTS is supporting aspiring entrepreneurs from refugee and host communities to start and improve businesses.

Empowering entrepreneurs and businesses

Business plan competition: The ILO is fostering entrepreneurship and economic development in Ethiopia through two Business Plan Competitions (BPCs). In the Somali Region, the ILO partnered with HASI Consulting to deliver a BPC that provided top 50 refugee and host community winners with business development training, mentorship, and seed funding. Recently, the ILO and Digital Opportunity Trust (DOT) Ethiopia have jointly implemented a BPC in and around the Alemwach refugee site, where the top 60 winners from both refugee and host communities receive mentorship and seed funding to implement their business ideas.

Supporting business development service providers: The ILO supported the establishment of Business Development Service Providers Association (BDSPA) in Ethiopia to bolster the business development services, thereby nurturing entrepreneurship and supporting the expansion of small and medium-sized enterprises. This partnership focuses on capacity building for BDSPA members, enabling them to deliver effective training and mentorship.

Institutionalization of ILO tools: The ILO and Jigjiga University are collaborating to institutionalize the Start and Improve Your Business (SIYB) program within the university. This initiative aims to empower youth from refugee and host communities to become self-employed job creators. The project provides entrepreneurship training to youth in a Business Incubation Center, established with the support of the ILO, to support the practical application of entrepreneurial skills.

Strengthening value chains and livelihoods

The ILO, in collaboration with Vétérinaires Sans Frontières Suisse (VSF Suisse) through the PROSPECTS programme, has revitalized the dairy value chain in Ethiopia's Fafan zone by addressing challenges like low productivity, poor milk quality, and limited market access.

This partnership empowers communities through capacity building, cooperative development and strengthening, and technical training in milk production, preservation, and marketing. Key achievements include training cooperative members and Community-Based Animal Health Workers (CAHWs), establishing a cooperative-run commercial animal feed production that utilizes mainly local ingredients and creates new economic opportunities, and constructing large water retention ponds to combat scarcity, ultimately enhancing livelihoods and food security for both refugee and host communities.

Promoting financial inclusion

Access to financial services: The ILO and Shabelle Bank have partnered to pilot "Aisha," an innovative, Sharia-compliant financial product aimed at improving financial inclusion for refugees and host communities.

Strengthening the microfinance: The ILO and Association of Ethiopian Microfinance Institutions (AEMFI) collaborate to strengthen the microfinance sector and expand financial inclusion, with a particular focus on developing and promoting microinsurance products.

Partners

  • Jigjiga University
  • HASI Consulting
  • Digital Opportunity Trust (DOT) Ethiopia
  • Shabelle Bank
  • Association of Ethiopian Microfinance Institutions (AEMFI)
  • Vétérinaires Sans Frontières Suisse (VSF Suisse)
  • Business Development Service Providers Association (BDSPA)

Key Achievements (Since 2019)

  • Supported two Business Plan Competitions (BPCs) in Somali and Amhara Regions, benefiting 110 youth-led businesses with training, mentorship, and seed funding.
  • Established and supported the Business Development Service Providers Association (BDSPA) to enhance entrepreneurship support.
  • Institutionalized the Start and Improve Your Business (SIYB) program at Jigjiga University.
  • Piloted “Aisha,” a Sharia-compliant financial product in partnership with Shabelle Bank to improve financial inclusion.
  • Strengthened microfinance institutions through collaboration with AEMFI, focusing on microinsurance development.
  • Constructed milk collection and cooling facilities to strengthen the dairy value chain in Kebribeyah.
  • Developed cooperatives and trained Community-Based Animal Health Workers (CAHWs) to support livestock and dairy production.

Resources on economic inclusion

Approach to Integrated Market Systems: Dairy value chain in the Somali Region, Ethiopia

Factsheet

Approach to Integrated Market Systems: Dairy value chain in the Somali Region, Ethiopia

Evaluation of Market Systems Development Interventions for Refugee and Host Communities in Jijiga, Ethiopia

Approach to Inclusive Market Systems

Evaluation of Market Systems Development Interventions for Refugee and Host Communities in Jijiga, Ethiopia

Rapid assessment of livestock markets in Jigjiga, Ethiopia

Assessment

Rapid assessment of livestock markets in Jigjiga, Ethiopia

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