Ethiopia’s Refugee Integration: Challenges and Pathways to a Better Future

Ethiopia hosts nearly 1 million refugees, primarily from South Sudan, Somalia, and Eritrea, but despite adopting progressive policies, refugees remain reliant on humanitarian aid. A recent report titled "Expanding Development Approaches to Refugees and Their Hosts in Ethiopia" by the World Bank highlights that the lack of education and employment opportunities keeps refugees trapped in poverty, with significant gaps between refugee and host welfare outcomes. The report suggests promoting refugee self-reliance through labor market access, investment in host areas, and transforming camps into integrated settlements.

Ethiopia, one of Africa’s leading refugee-hosting nations, is currently home to nearly 1 million refugees from neighboring countries, primarily South Sudan, Somalia, and Eritrea. Although the country has implemented progressive policies, such as the Comprehensive Refugee Response Framework (CRRF) and a new Refugee Proclamation that promises basic rights, including access to services and employment, refugees continue to face substantial barriers. These policies aim to shift Ethiopia’s refugee approach from a camp-based model to a more inclusive one that promotes self-reliance. However, as revealed in the World Bank's recent report, "Expanding Development Approaches to Refugees and Their Hosts in Ethiopia," challenges in translating policy into tangible socioeconomic outcomes persist, with implementation delays creating hurdles for both refugees and their host communities.

Refugee Landscape in Ethiopia: A Complex Reality

With 88% of refugees living in rural camps near border areas, they are isolated from the country’s economic hubs, making it difficult for them to access better livelihood opportunities. Though Ethiopia’s new policies legally grant refugees the right to work, freedom of movement, and basic services, in practice, many are still dependent on humanitarian aid, limited to basic survival rather than being empowered to thrive. According to the Socio-Economic Survey of Refugees in Ethiopia (SESRE) conducted between November 2022 and January 2023, refugees’ welfare outcomes are significantly lower than those of hosts, particularly for in-camp populations.

The SESRE study highlights the glaring gap in educational attainment, particularly at the secondary level, where only 22% of refugee children are enrolled compared to 44% of their host counterparts. This disparity in education is more pronounced in camps, where children face various barriers, including inadequate school infrastructure, cultural factors, and the need to support household income. Refugee children are often delayed in starting school, which further affects their long-term educational achievements.

Employment and Livelihoods: An Uphill Battle

Employment rates for in-camp refugees remain dismally low, with most refugees unable to access the formal job market due to the lack of work permits or business licenses. This leaves them reliant on informal employment within or near the camps, where earnings are meager, and opportunities are scarce. The SESRE data reveals that only 25% of in-camp refugees are engaged in paid work compared to 48% of hosts, and nearly half of all refugee households do not have a single employed member.

For those who do find work, the type of employment is often low-skilled, offering little opportunity for advancement or economic stability. Most refugees are involved in informal trade, menial labor, or dependent on aid-related activities within the camps. Legal restrictions, language barriers, and lack of skills aligned with the local job market further limit their ability to secure meaningful employment outside the camps.

Promoting Welfare and Self-Reliance

The SESRE report finds that poverty levels are significantly higher among in-camp refugees than in surrounding host communities. Multidimensional poverty—defined by low living standards, lack of education, and poor health—remains a persistent challenge. Refugees in Ethiopia continue to grapple with food insecurity, limited access to healthcare, and inadequate housing. The report emphasizes the need for place-based interventions that address both refugee and host needs to foster better socioeconomic integration and shared prosperity.

Efforts to promote self-reliance and economic integration are crucial for lifting refugees out of poverty and reducing their dependency on aid. The report suggests that expanding access to education, strengthening healthcare services, and enabling refugees to participate in the local labor market can significantly improve their socioeconomic status. Additionally, the report recommends investments in refugee-hosting areas to enhance local infrastructure, create employment opportunities, and reduce tensions between refugees and their hosts.

Policy Recommendations for Sustainable Solutions

The SESRE report outlines several policy recommendations to address these issues. Firstly, enabling refugee mobility and easing restrictions on obtaining work permits would facilitate their integration into local economies. Secondly, integrating refugee children into national education systems would improve their future economic prospects. Strengthening healthcare systems to accommodate refugee health needs and enhancing access to social safety nets for both refugees and vulnerable host communities are also critical steps.

Moreover, the report advocates for transforming refugee camps into more integrated human settlements, providing refugees with equal opportunities and rights. By implementing these strategies, Ethiopia can move closer to realizing its vision of inclusive development, ensuring that refugees and their hosts can both contribute to and benefit from the country’s growth.