Financing Durable Solutions Programme for Forcibly Displaced People (FDSI)


Through an innovative approach, Switzerland will mobilize the private sector and municipalities to contribute to durable solutions for displacement-affected communities in the Horn of Africa. Forcibly displaced persons and their host communities will benefit from enhanced self-reliance and increased socioeconomic inclusion. The initiative operationalises the strategic link between migration policy and international cooperation and further strengthens Switzerland’s profile as a pioneer in the search for durable solutions.

Country/region Topic Period Budget
Horn of Africa
Migration
Employment & economic development
Forced displacement (refugees, IDP, human trafficking)
Migration generally (development aspects and partnerships)
SME development
01.10.2021 - 31.12.2025
CHF  8’000’000
Background The Horn of Africa is a region of focus of Switzerland’s domestic and foreign migration policy. Highly affected by forced displacement, the region is characterised by predominantly protracted displacement in urban contexts. If not resolved, the displacement situation will jeopardise equitable socio-economic development and the achievement of the Sustainable Development Goals (SDGs). Meeting the rights and needs of forcibly displaces persons (FDP), and addressing the root causes of displacement are fundamental to countries’ political, economic and social progress, displacement being a root cause of fragility in the region. At the same time, harnessing the productive potential of displacement-affected communities, supporting their self-reliance and sustainable integration processes could lead to socio-economic gains for displaced persons and host populations alike, and for the respective society at large. Governments alone cannot cope with the described trends, not least because they lack the required funding to do so. In order to bridge the existing financing gap, concerted efforts involving the private sector and development partners are required. Besides funding, long-term solutions to forced displacement are in need of a consistent engagement of key actors at the local level, notably the private sector (SMEs, investors, financing institutions, etc.) and local governments. Over the last years, Switzerland has been at the forefront in promoting durable solutions for FDP in the Horn of Africa. The exemplary whole-of-government approach in place in the region builds on the strengths of each stakeholder (SDC, SEM). It allows for a clear and coherent profile of Switzerland on forced displacement in the region.
Objectives Forcibly displaced persons and their host communities in the Horn of Africa are able to live safe, dignified and productive lives.
Target groups

The three partnerships under this programme have the following geographic focus: Kenya, Somalia, Uganda, Ethiopia:

 

1) FDP in the pilot cities of Arua and Gulu in Uganda as well as Baidoa and Bosaso in Somalia whose quality of life will be improved by the policy and financing interventions for durable solutions; FDP and host community members who are employed by refugee lens companies and their household members who also benefit from increased incomes; FDP and host community members who are customers of refugee lens businesses delivering affordable goods and services.

2) 25 companies which will participate in the first Refugee Lens Venture Accelerator HoA program in Kenya and Ethiopia.

3) local governments of Arua and Gulu in Uganda, Baidoa and Bosaso in Somalia and the business project developers supported by the programme.

4) indirect beneficiaries include other local and national authorities, investors and SMEs in the HoA as well as humanitarian, development and peacebuilding actors, who may be able to learn from this pilot initiatives. 

Medium-term outcomes

1.     Cities, local governments and host communities manage migration related challenges and opportunities including through improved fiscal financing of durable solutions.

2.     Private sector actors participate in innovative durable solutions.

3.     Multi-stakeholder coordination, knowledge sharing and learning promoting durable solutions are improved.

Results

Expected results:  

1.1. Local policy and regulatory frameworks in place promoting local inclusion/durable solutions

1.2. Improved local capacity to mobilize funding to accommodate FDP

1.3. Practitioners and government officials have strengthened their capacity to improve the social and economic inclusion of FDP

1.4.  A communication strategy developed and implemented to showcase economic opportunities of FDP inclusion at the local level, including “refugee lens investing”.

2.1  Technical assistance to SMEs creating jobs and economic opportunities for FDP

2.2  Evidence on the business case of refugee lens investing generated and disseminated

2.3  Companies/SMEs serving FDP are provided with seed capital

3.1. Multi-level policy dialogues at local, national and regional levels bring together policy-makers and practitioners to support joint planning and peer learning towards durable solutions

3.2 Research and analysis on socio-economic inclusion inform evidence-based solutions to displacement.


Results from previous phases:  

·       Coherent and clear profile of Switzerland defined and clear repartition of task between the WOGA partners in their engagement in durable solutions at the national and regional level.

·       Action-oriented research report on new ways to mobilize the private sector in promoting durable solutions for FDP in the Horn of Africa and Middle East done by the Earth Security Group (ESG): Earth Security Group (2020): Financing Durable Solutions for Forcibly Displaced People.

·       Identification of two-pronged approach with the two most promising partners in this field

1)     Mobilization of the private sector to engage in “refugee-lens investing”, which is the practice of intentionally investing in companies that are improving FDP lives by creating opportunities for economic self-reliance and social cohesion with ACUMEN/RIN/GDI.

2)     Strengthening municipal financing mechanism designed to unlock private capital for the promotion of durable solutions in displacement affected communities with UNCDF.

-        Development of a programmatic approach with all partners which strategically combines actions at the local, national, regional and global levels. 


Directorate/federal office responsible SDC
Project partners Contract partner
International or foreign NGO
Private sector
United Nations Organization (UNO)
  • Other international or foreign NGO North
  • Foreign private sector North
  • United Nations Capital Developoment Fund
  • Global Development Incubator (GDI) for ACUMEN and RIN (Refugee Investment Network) UNDCF Regional Durable Solutions Secretariat (ReDSS)


Coordination with other projects and actors

·       WOGA interventions under the regional Entry Proposal at the national level;

·       GPMD-funded Cities Alliance programme

·       Swiss humanitarian interventions (ICRC, OCHA, WFP)

·       Bilateral development programmes (UN Joint Programme on Local       Governance (JPLG) and World Bank).

-       Multilateral initiatives: Global compact on refugees, IDPs High level panel,   etc.

Budget Current phase Swiss budget CHF    8’000’000 Swiss disbursement to date CHF    1’663’492