Business Leaders Convene to Advance Private Sector Investment in Displacement-Affected Areas of Africa

Lagos, Nigeria; Dakar, Senegal - This week, business leaders from across Africa gathered in Nigeria to advance private sector solutions for internally displaced people and other impacted communities.

The 2024 Africa Roundtable on Private Sector Solutions explored innovative ways the private sector can support communities impacted by internal displacement in fragile contexts. It is organized by the United Nations High Commissioner for Refugees (UNHCR) in collaboration with the Government of Nigeria, the Special Advisor to the United Nations Secretary-General on Solutions to Internal Displacement and co-hosted by the International Organization for Migration (IOM) and the United Nations Development Programme (UNDP).

Globally, internally displaced populations (IDPs) -- those forced to flee their homes but remain within their countries’ borders -- outnumber refugees. By mid-2024, an estimated 72.1 million people were internally displaced globally, with approximately 50% of them residing in Africa. Conflict remains the leading cause of internal displacement, accounting for more than 90% of cases globally, while the effects of climate change – particularly floods and droughts – are increasingly driving displacement, with recent flooding displacing over 5.7 million individuals in Sub-Saharan Africa.

IDPs often face prolonged displacement with limited access to basic services, legal protection, and economic opportunities, which hinders their ability to meet basic needs, contribute to economic development, increases their reliance on humanitarian aid, and exacerbates social tensions within host communities.

“We have a new generation of solutions plans that promise to move millions of internally displaced persons onto solutions pathways. The private sector has a vital role to play - by creating jobs, supporting entrepreneurship, driving economic growth. We need capital, we need ideas, we need creativity, we need markets. Success depends on it." Said Robert Piper, United Nations Special Advisor on Solutions to Internal Displacement.

Despite the potential, the fragile environments in many affected countries pose significant challenges to private sector investment, due to high risks and the absence of enabling regulatory frameworks. Discussions centered on the barriers to investment, underscoring the need for collaboration between government, development banks and private sector unlock opportunities in these regions.

Participants, including governments, development actors, private sector companies, civil society and international organizations,  discussed key areas where private sector can drive durable solutions and generate livelihood opportunities.  Among other solutions, modernizing agricultural practices, expanding access to finance, enhancing climate-resilience, fostering innovation through technology, investing in durable solutions, and enhancing digital connectivity were highlighted.

These investments not only address immediate needs but also build long-term resilience, contributing to economic recovery and stability in fragile contexts.

Mr. Farouk Gumel, Vice Chairman of Tropical Investments Group (TGI) commented, "It’s time for the private sector to recognize the immense potential and responsibility in addressing internal displacement, let alone at our doorstep. By leveraging our resources and expertise, we can create sustainable solutions that not only support displaced and host communities but also drive economic growth and innovation for all. To effectively operate in internal displacement contexts, it is crucial to establish a favorable regulatory environment, implement de-risking strategies, and foster public-private partnerships. By addressing these key areas, we can ensure that the private sector is empowered to contribute meaningfully and sustainably to the well-being of displaced populations and their hosts."

In Nigeria, the Katsina State Government, UNHCR, and Tropical General Investments Group (TGI) have partnered to support 5,000 internally displaced persons (IDPs) in the state. The government is providing land, irrigation, and subsidies, while TGI brings private sector expertise, cooperative capacity building, financial services, and market access. UNHCR will facilitate community engagement, beneficiary selection, and a one-stop shop for essential identification, documentation, and protection monitoring. The project will promote self-reliance and sustainable solutions for IDPs through job creation in agriculture and inclusion in the government’s socio-economic programmes.

“We cannot be successful without the active engagement of the private sector. A healthy, comfortable population is essential for the continued growth of private sector enterprises, for the robustness of purchasing power, and for emotionally stable workers,” emphasized H.E. Kashim Shettima, Vice President of the Federal Republic of Nigeria.

The roundtable brought together over 250 participants from 11 countries and focused on nations with the highest populations of IDPs, including Burkina Faso, the Central African Republic, and Chad. Other countries discussed included Niger, Ethiopia, Mozambique, Nigeria, Somalia, Sudan, and South Sudan, all grappling with significant displacement challenges.

Raouf Mazou, UNHCR Assistant High Commissioner for Operations, said, “Achieving self-reliance and socio-economic inclusion of these populations should be the goal.  The private sector plays a key role in creating jobs and enhancing access to services, and this Roundtable was crucial in fostering discussions on overcoming barriers and finding mutual benefits for sustainable solutions to displacement.”

For more information please contact:

• In Dakar, Alpha Seydi Ba, [email protected], +221 77 200 36 81
• In Lagos, Edward Ogolla, [email protected]