Incentivise private sector, says Danish Diplomat

______________

Lisbeth Jespersen, the Danish Deputy Permanent Representative to the UN organisations in Rome has urged the government to incentivise private sector actors to be able to make long-term investments in areas hosting refugees.

This was after her visit to the West Nile region last week to assess the impact of Denmark's collaboration with the World Food Programme (WFP) in the area. Denmark contributed about $1m to provide food assistance to urban refugees during the COVID-19 pandemic.

Within the West Nile, the delegation also visited the Rhino Camp Refugee Settlement located in the districts of Madi-Okollo and Terego. Jespersen said that while government aid plays a key role in the short term, sustainable development ultimately hinges on the engagement of the private sector.

“Involving the private sector is really important. It's important that we can be able to support for a period of time with government money but in the long run this has to be developed by the private sector,” she said.

Jespersen said West Nile districts bordering Democratic Republic of Congo (DRC) and South Sudan face significant challenges in doing business, saying that incentivising the private sector may ease access to water for irrigation.

According to a study by the International Finance Corporation, areas hosting refugees in the West Nile and Southwest regions spend over $485m (about sh1.7 trillion) annually on consumer goods, which presents a huge market for the private sector.

The West Nile region accounts for $246m (sh885b), representing 51%. This is largely driven by the host community's spending, at $201m (sh723b). On the other hand, the Southwest region contributes $239m (49%) to the total.

The report indicates that the refugee marketplace is slightly larger in West Nile than in the Southwest because of the larger population size in the former.

The 2022 study, titled; The Consumer and Market Study in Southwest and West Nile Refugee Hosting Areas in Uganda, aimed to provide data for private sector companies seeking to expand into and support this substantial market. Uganda is home to more than 1.5 million refugees.

The delegation also held discussions with the Office of the Prime Minister (OPM) on climate change, and the Ministry of Education on local school meal programs supported by various donors, including Danish funds and private foundations.