Regat Mebrehatom, a refugee from Eritrea, in her home-based hair salon

PROSPECTS Impact

From skills to income: youth in Ethiopia turn training and grants into businesses

Supported by the ILO’s Youth-to-Youth Fund, refugee and host community youth in Ethiopia are using business training and seed funding to launch enterprises and generate income.

5 May 2026

Addis Ababa, ETHIOPIA (ILO News) – In Addis Ababa, young women from both refugee and host communities are building sustainable livelihoods through youth-led initiatives supported by the International Labour Organization (ILO).

Through the Youth-to-Youth Fund (Y2YF), implemented by the ILO under the PROSPECTS partnership with support from the Government of the Netherlands, young people are gaining the skills, confidence and resources needed to start businesses, generate income and shape a more secure future.

Delivered in partnership with Edukans Foundation, the initiative supports ten youth-led organizations that provide entrepreneurship training, financial education and seed funding to over 1,037 vulnerable young people. The approach reflects ILO’s commitment to promoting decent work and expanding economic opportunities for refugees and host communities alike.

Turning skills into opportunity

For 25-year-old Regat Mebrehatom, a refugee from Eritrea who has lived in Addis Ababa for seven years, the programme marked a turning point. Previously working intermittently as a traditional hairdresser, she faced unstable employment and limited income.

After learning about Y2YF through friends, she participated a four-day entrepreneurship and financial education training delivered by Live for Generation, one of the participating youth-led organizations. She gained practical business and digital marketing skills and received a seed grant of 45,000 Ethiopian birr (approximately US$300), which she used to purchase essential equipment, including chairs, mirrors and hair products.

“Starting my own business is much better than being employed. Now I am earning a better income and building something for myself,” says Regat.

Today, Regat runs her own home-based hair salon, generating enough income to cover her living expenses, including rent. She continues to grow her client base through word of mouth and by promoting her services on TikTok and Facebook - skills she developed during the training.
One of her clients, Lidya Feshaye, highlights her professionalism: “Regat can recreate any hairstyle exactly as requested. She communicates well and is always punctual.”

Looking ahead, Regat plans to grow her business into a full-service beauty salon and create job opportunities for others. “There is demand, and I want to expand my services and employ other young people,” she explains.

From household responsibilities to entrepreneurship

Semira Wulchafo, a member of the host community in Addis Ababa, had no previous entrepreneurial experience. As a mother of four, she was focused on managing her household while her husband was the family’s sole breadwinner.

Participating in entrepreneurship and financial education training changed her perspective. One message from the trainer stood out for her:
“The trainer told us to use any available resources as start up capital. That message changed my life.”

Determined to act, Semira and her husband sold their refrigerator for ETB 25,000 (approximately US$160) to buy a samosa frying machine. She began selling sambusa and french fries, later transitioning into running a small retail shop.

Semira Wulchafo, a member of the host community in Addis Ababa, in her small retail shop

When the programme team asked what support she needed, Semira identified a refrigerator as a priority. She received one valued at ETB 40,000 (approximately US$ 260), enabling her to expand her business to include cold drinks.

She reinvests her profit to keep expanding her inventory. Just five months after opening, her shop is fully stocked and steadily growing.
“My dream is to expand my business, change my life, and support others to change theirs,” she says.

Stephen Opio, Chief Technical Advisor of ILO PROSPECTS in Ethiopia and Sudan, highlighted the impact of the intervention on the youth‑led organizations, “The technical capacity‑building provided to youth‑led organizations has strengthened their ability to independently design and implement similar livelihood initiatives in the future”.

Stephen added, “For several of these organizations, the financial support received through the Y2YF represented the largest level of funding they had accessed since their establishment, enhancing both their operational capacity and long‑term sustainability.

By investing in youth-led solutions, the Youth-to-Youth Fund is helping to unlock the potential of young people as drivers of inclusive economic growth. Through skills development, access to finance and peer support, the initiative is not only creating livelihoods but also strengthening resilience and social cohesion between refugee and host communities—demonstrating how targeted interventions can advance decent work and leave no one behind

About Y2YF

Youth to Youth Fund is a youth employment model and a competitive grant scheme designed to support youth-led organizations with funding, capacity building and direct technical assistance. In Ethiopia, the ILO PROSPECTS program, in partnership with Edukans Foundation Ethiopia, supported ten youth-led organizations, selected through a competitive process, to implement innovative entrepreneurship programs to promote decent employment for youth.

These organizations received funding from the ILO and supported 1,037 young people to start and improve their businesses to promote decent employment for youth projects. Through this initiative, 287 new businesses were launched and 116 existing businesses expanded, creating 319 additional new jobs using the financial grants, training, Business to Business (B2B) and market linkage and mentorship services. Additionally, 321 youths have been linked with financial institutions to access financial services.