EU boosts refugee-hosting communities with sh16.7b

The European Union has earmarked euros four million (approximately sh16.7b) to enhance cash-based support for vulnerable refugees and host community members across 13 settlements in Uganda.

The funds, which are being channelled through the Uganda Cash Consortium (UCC), bring EU's total funding to the consortium to euros 17.2 million (about shillings 71.8 billion) since the project’s inception in 2023, according to an advert in New Vision's print edition of June 17, 2025.

Led by the Danish Refugee Council (DRC) and Lutheran World Federation (LWF), UCC aims to use the new funds to provide life-changing assistance to 36,394 individuals through multi-purpose cash transfers over six months in 2025.

The support will help beneficiaries meet essential needs such as food, rent and healthcare. Transfers will be made digitally through mobile money and bank accounts, ensuring efficiency and transparency.

In addition to supporting basic needs, the consortium will offer education cash assistance to 15,565 children who are out of school or at risk of dropping out, helping them stay in school until Term One of 2026.

"The EU's longstanding collaboration with the Uganda Cash Consortium has proven extremely effective," Bruno Rotival, who oversees the EU’s humanitarian programmes in Uganda, said, "Providing cash gives people dignity and choice and supports the local economy—it's one of the most efficient forms of aid." 

Since 2023, the EU’s partnership with UCC has enabled 89,580 people to access Multi-Purpose Cash Transfers and helped 28,625 children stay in school through the Education in Emergencies program.

"This renewed support means more than just meeting basic needs," noted Samuele Otim Rizzo, country director of the DRC in Uganda. "It restores dignity, keeps children in school, and offers families a chance to rebuild their lives."

Uganda remains one of the world’s largest refugee-hosting nations, currently sheltering over 1.8 million refugees. The need for assistance continues to grow amid regional instability and economic hardship.

The ongoing success of the Uganda Cash Consortium’s work is attributed to strong partnerships, including with the Office of the Prime Minister (OPM), UNHCR, and local actors who facilitate delivery and coordination across refugee settlements.

Earlier call

About two weeks ago, the Government and the United Nations High Commission for Refugees (UNHCR) issued a joint call to the international community to step up funding in response to an escalating refugee crisis.

As of May 2025, Uganda has already received over 110,000 new refugees, pushing the total refugee population to a staggering 1.9 million—yet UNHCR Uganda’s operations are critically underfunded, with only 17% of the 2025 budget secured.

Severe global funding shortages have forced both the government and UNHCR to make painful operational decisions, including staff reductions. These actions, while necessary, directly affect service delivery to refugees and the personnel supporting them.

Eng. Hilary Onek, the relief, disaster preparedness, and refugees minister, in a joint statement, said despite these challenges, Uganda continues to uphold one of the most progressive refugee policies in the world—providing safety, land, and access to education and healthcare for displaced populations.

This commitment remains firm, but the system is under immense pressure, which is likely to lead to a conflict between refugees and the host communities.

Onek noted that the refugee crisis should not be just Uganda’s burden to bear but rather a global responsibility. He added that Uganda’s generosity must be met with concrete international solidarity.

“The time to act is now,” said Onek. “We are committed, but we cannot do this alone,” he stressed.

Matthew Crenstil, UNHCR’s Country Representative in Uganda, said support from donors and partners is critical.

“This is a call to humanitarian agencies, development partners, and donors to help us sustain lives,” he said.

Onek said, “We urge all humanitarian agencies, development partners, and donors to urgently close the 83% funding gap for UNHCR Uganda, support Uganda’s inclusive refugee-hosting model, and act swiftly to prevent deeper service cuts and growing human suffering. Uganda has done its part—now the world must do theirs.”