Urban refugees call for sensitisation on business registration

__________

TRAINING

Uganda is one of the largest refugee-hosting nations in the world, with 1,660,524 refugees as of 28 March.

The vast influx of refugees is due to several factors in Uganda’s neighbouring countries, especially war and violence in South Sudan and the DR Congo, and associated economic crisis and political instability in the region.

Despite efforts by the Government and development partners to ensure refugees are comfortable, they still face numerous challenges in social services. Eunice Akullo and Ivan Tsebeni write about the challenges facing urban refugees.

Consolata Zavuga, 69, fled to Uganda in 1998 during the Second Congo War when she was 43 years old, leaving behind her five children, whom she has not seen since.

Upon settling in Makindye Division in Kampala, which was less developed at the time, Zavuga faced numerous challenges adapting to her new life in a foreign land. “I connected with locals and nationals, who later helped me find work washing clothes so I could earn a living.

Although the pay was low, I was determined not to stay in that situation for long. I saved what little I could, which eventually allowed me to start a small business,” she recounted.

Zavuga runs a craft business, producing baskets, bags, mats, beads and more. Despite her efforts, she encountered challenges as local customers preferred buying from nationals, which initially hindered her sales. Nevertheless, she persisted.

“I faced slow sales, but I persevered because I understood the cost of not knowing how to navigate an urban environment,” she explained.

Another significant hurdle was meeting registration requirements from authorities, such as the Uganda Revenue Authority (URA) and the Uganda Registration Services Bureau (URSB), a process she found ‘hectic and tiresome.’  

Despite these challenges, Zavuga managed to register her business formally and began paying taxes, successfully avoiding losing her small capital to authorities, who previously confiscated her items.

Zavuga strongly believes there is a pressing need for extensive sensitisation on business documentation to help refugees understand the advantages of registration and to encourage more to formalize their businesses, thus avoiding exploitation by fraudsters.

She emphasised that limited access to official information often forces refugees to rely on unreliable sources. Inaccurate information not only deters some from registering but also exposes others to exploitation.  

Overall, the lack of official information creates confusion and hesitancy among business owners about formalizing their enterprises. Furthermore, Zavuga highlighted the significant challenge posed by the various costs associated with registering a business, particularly for low-income ventures owned by refugees.

Michael John Wells, the assistant country representative for the United Nations High Commissioner for Refugees (UNHCR), looks at some of the fabrics made and sold by Deborah Bora Salumu, an urban refugee from the DR Congo. This was during the World Refugee Day celebrations for urban refugees at Lubiri High School in Kampala on Thursday. (All Photos by Lawrence Mulondo)

The tedious process of travelling to government offices to submit paperwork and the accompanying expenses can be prohibitive. Despite these difficulties, Zavuga remains determined to grow her business and contribute positively to her community, drawing from her resilience and perseverance in the face of adversity.  

Edya Katsu, 59, has spent the last 12 years in Uganda after fleeing Burundi due to internal conflicts surrounding elections, vowing never to return due to the painful memories of war that claimed her relatives’ lives.

In Uganda, she has established a business in arts, specialising in making sticks and home furniture, which has provided her with a stable income and a sense of belonging.

“I have never thought of returning to Burundi because of the painful memories of the war that took my relatives’ lives. But I feel at home in Uganda,” Katsu says, expressing contentment with her life in Uganda.

Michael John Wells, the assistant country representative for the United Nations High Commissioner for Refugees.

She emphasises the importance of sensitization for refugees, particularly in urban areas, regarding the benefits of business registration. Katsu believes that increased awareness will empower refugees with the knowledge to operate safely, accumulate rightful profits and contribute to Uganda’s development.

“Sensitisation is a powerful tool for empowering refugees with knowledge and support. It’s crucial because it will help them understand the rules of operation,” she stresses.

Uganda hosts over 1.6 million refugees across 13 districts, making it Africa’s largest refugee-hosting country. Despite Uganda’s inclusive policy environment, which allows refugees the right to live, work and move freely under the Refugees Act of 2006, refugee engagement in formal employment remains limited.

Only about 29% of refugees are actively working, compared to 64% of nationals in host communities.

Consolata Zavuga

The majority of working refugees are self-employed, often in small-scale retail or service provision, operating with minimal capital, technology and organisational structure, primarily in temporary locations. According to a recent report by the United Nations High Commission for Refugees (UNHCR), 75% of refugee-owned businesses are not connected to regional or national markets and only 42% are formally registered with Ugandan authorities.

This lack of formal registration limits their access to resources, market opportunities and legal protections.

The COVID-19 pandemic has exacerbated these challenges, straining humanitarian budgets and increasing global humanitarian needs.

Both the international humanitarian community and the Ugandan government are now seeking more sustainable solutions to address forced displacement and support refugee livelihoods.

Edya Katshu

Katsu and others like her underscore the need for comprehensive sensitisation efforts and supportive policies to enable refugees in Uganda to formalize their businesses effectively, access markets and contribute meaningfully to the country’s economy and development.

The barriers

The ongoing challenges and opportunities for refugees in Uganda highlight the critical need for strategies that support their self-reliance and economic empowerment. With over 1.6 million refugees hosted in Uganda, it is crucial to address barriers that hinder their ability to set up and run formal businesses effectively.

Edya Katsu underscores the importance of sensitisation efforts, noting that many refugees lack access to essential information regarding business registration and operations.

She believes that mandatory business registration would not only instil confidence among refugee entrepreneurs but also provide security for their customers. Martha Murungi, a para-social worker involved with the Norwegian Refugee Council (NRC), acknowledges the role of the NRC in assisting refugees with business registration. 

Martha Murungi

She emphasises that many refugees engaged in businesses are unaware of the benefits associated with formal registration, highlighting the need for intensified sensitisation efforts.

Malile Melchizedek, the head of programmes at NRC, emphasises Uganda’s inclusive policy environment for refugees but notes challenges, such as funding cuts and negative coping mechanisms adopted by refugees due to economic strain. 

The NRC is focused on leveraging coordination and resources to support refugees effectively in these difficult circumstances. Despite these challenges, Douglas Asiimwe, the commissioner in charge of refugee management at the Office of the Prime Minister (OPM), reaffirms Uganda’s commitment to protecting refugee rights and promoting inclusive policies.  

He emphasises the need for refugees to engage in activities that promote self-reliance and reduce dependency, viewing the refugee population in Uganda as a potential asset to the country’s productive labour force.

Uganda’s refugee policy

While Uganda’s policies are inclusive and supportive of refugees, there is a clear call for enhanced sensitisation, increased access to information and robust support mechanisms to facilitate refugee entrepreneurship and economic integration.  

Efforts from government bodies, humanitarian organisations like the NRC and international donors are crucial in addressing these challenges and ensuring refugees can thrive and contribute meaningfully to Uganda’s development.

Douglas Asiimwe, the commissioner in charge of refugee management at the Office of the Prime Minister (OPM), passionate defence of refugees’ rights and contributions underscores Uganda’s unique approach to refugee policy.

ALSO READ: 

1. New Vision unveils refugee stories of hope 

2. Mapping initiative slashes maternal mortality in refugee

3. How cutting food rations spurred innovation among refugees

4. Refugees in urgent need of housing

5. Refugees stretch Yumbe Health services to breaking point

6. Who will restore forest cover in refugee-hosting districts?

7. Village savings boost business in Bidibidi Refugee settlement

Despite not granting citizenship, Uganda welcomes refugees by providing land and basic services, allowing freedom of movement, and promoting self-reliance.

This inclusive policy has been consistent, evolving through frameworks like the 2016 Refugee and Host Population Empowerment (ReHoPE) strategic framework.  

This model integrates refugees into national development plans, emphasising resilience and self-reliance for both refugees and host communities.

Asiimwe emphasised that refugees’ economic activities contribute to Uganda’s revenue through taxes, thereby benefiting the country’s development.

This stance reflects Uganda’s commitment to viewing refugees, not just as beneficiaries of aid, but as potential contributors to the economy and society.

This story project was done with support from the Word Association of Newspapers and News Publishers Women in News Social Impact Reporting Initiatives Grant Gender Equality, Diversity and Inclusion.

The views expressed are not those of the sponsor.