Financial inclusion of refugees and host communities in the Somali region of Ethiopia: A PROSPECTS partnership with Shabelle Bank

This case study examines how the ILO PROSPECTS partnership with Shabelle Bank is expanding access to Shariah-compliant financial services for refugees and host communities in Ethiopia’s Somali region. By combining tailored working-capital financing, savings mechanisms and digital financial solutions, the initiative helps micro and small enterprises strengthen liquidity, invest in business activities and manage financial risks more effectively. Beyond improving access to financial products, the model also supports greater enterprise resilience, market participation and progression into the formal financial system. It offers a practical example of how inclusive finance can contribute to reduced aid dependency and more sustainable economic integration in displacement-affected contexts.