Girmay Mihretab at work in his small restaurant

PROSPECTS Impact

From migration dreams to local success: Empowering refugees and host communities in Ethiopia

In Ethiopia, two young entrepreneurs – one a refugee, the other from the host community – transform uncertainty into opportunity through the ILO Youth-to-Youth Fund, building businesses that create jobs and restore hope.

12 March 2026

Addis Ababa, ETHIOPIA (ILO News)- When Girmay Mihretab arrived in Ethiopia 11 years ago as an Eritrean refugee, he was focused on one goal: leaving. He considered irregular migration channels as well as dangerous routes to Europe or the United States.

Today, inside his lively restaurant in Addis Ababa, his outlook has changed due to the livelihood created

Girmay received improving business training from Rejoice Africa through the ILO and Edukans Foundation. “After the training, I realized I should keep working here in Ethiopia and improve my life. Wherever I go, I will need to work. So, I decided not to lose hope and focus on the business I already started.”

Girmay is among the young refugees and host‑community members supported by the ILO PROSPECTS through the Youth‑to‑Youth Fund (Y2YF). Implemented in Ethiopia in partnership with Edukans Foundation and ten youth‑led organizations, the Y2YF is a competitive grant and capacity‑building initiative. It supports youth‑led organizations to design and implement entrepreneurship projects that create decent work young people.

Youth-to-Youth Fund is a youth economic empowerment model implemented through the PROSPECTS partnership, with support of the Government of the Netherlands. This model promotes economic inclusion for refugees and host communities in Ethiopia through technical support, training and seed financing of initiatives that strengthen youth employment efforts.

Turning uncertainty into opportunity

Girmay learned about the Y2YF opportunity from friends. After being selected, he joined entrepreneurship training delivered by Rejoice Africa, a local youth empowerment non-profit organization in Addis Ababa.

Participants were encouraged to identify practical obstacles holding back their businesses. For Girmay, the issue was simple: customers wanted to watch live football matches, but his restaurant had only a small television.

To improve his business, through the Youth-to-Youth Fund, Girmay received a grant of 20,000 Ethiopian birr (ETB) (Approximately US$130), which he supplemented with his own savings, he purchased a larger screen. This allowed him to show foot ball matches at his restaurant which attracted more customers who come to watch football and increased his income.

Girmay Mihretab managing daily operations in his small restaurant.

The biggest impact was through the support received but extends beyond the grant support. “What I liked most was the training - how to start a business and improve business, how to think as an entrepreneur. It changed my mind completely,” said Girmay.

For years, he had seen refugee youth remain inactive and expect resettlement opportunities. His advice today reflects shift in perspective.

“I advise young people to develop skills and work while you are here. Don’t waste your time only dreaming of going abroad,” he added.

His restaurant now employs four people, supporting both his family and the local economy.

Regaining confidence and starting again

Piniel Belachew, 31, from Addis Ababa, experienced a similar turning point. With a Master’s degree in Biochemical Engineering, she launched a mushroom‑production venture that closed within a year because it was unable to generate sufficient profit.

Piniel Belachew at work in her small cafeteria.

Six months later, she saw a call for applications from Rejoice Africa which is one of the Youth-to-Youth Fund supported youth led organizations and decided to try her entrepreneurial journey again.

Selected for a small‑group training package, she received support in starting and improving business, business ideation, and business‑plan development, as well as a five‑day financial education course delivered by the ILO. The personalized format allowed for in-depth discussion and one‑on‑one coaching.

“The training encouraged me to start a business again. The brainstorming sessions helped me decide what to do next. I had some capital to start a business, but I wasn't sure where to start ”, said Piniel.

Piniel Belachew managing daily operations with her partner.

Together with her partner, she opened a new business, a small cafeteria specializing in pizza and burgers. Initially, production was limited by a slow, unreliable baking machine. With support of the ILO’sY2YF grant for improving business, they acquired a high-capacity oven worth ETB 80,000 (approximately USD520). This significantly improved their output and quality. The new oven is multipurpose and can bake a variety of items with its multiple trays simultaneously.

“The new oven changed our production capacity. We now bake pizzas, burgers andbread, with better quality,” she added.

Youth led-support, lasting impact

Rejoice Africa is one of the ten youth‑led organizations supported under Y2YF. By providing tailored guidance and mentoring, it helps young entrepreneurs translate ideas into viable businesses that generate decent work.

For Girmay and Piniel, the programme offered more than financial assistance. It restored confidence, strengthened skills and expanded their sense of possibility.

Girmay now sees Ethiopia not as a temporary stop, but as home.

“My plan now is to improve my business and live in Ethiopia, which I consider my country,” said Girmay.

Piniel’s is looking ahead. With improved production capacity and service quality, she plans to relocate her café to an area with higher customer traffic.

Their journeys demonstrate how targeted training, entrepreneurship support, and youth‑led initiatives can transform uncertainty into opportunity – creating tangible benefits for individuals, families and the wider communities.