Refugees and Their Money – Understanding the Enablers of the Camp Economy in Rwanda

This report by BFA for FSD Africa examines the financial needs and economic enablers of forcibly displaced people (FDPs) in Rwanda. It analyzes the barriers preventing financial service providers (FSPs) from serving refugees, such as unclear Know-Your-Customer (KYC) requirements and perceived credit risks, while highlighting the potential for business growth through improved documentation, mobility, and targeted credit products.

• Unclear and inconsistent Know-Your-Customer (KYC) requirements hinder interactions between refugees and financial service providers (FSPs). Many refugees possess proof-of-registration documents, but FSPs vary in their acceptance of these documents, and many refugee ID cards have been expired for two years because the government is changing the system.
• Livelihood activities promoted by NGOs, such as tailoring, carpentry, and chicken farming, generally only provide subsistence-level incomes. The report suggests that until issues of identity and mobility are resolved, these efforts are unlikely to boost incomes to more profitable levels.
• There is a significant demand for credit to expand refugee-led businesses, but formal credit is largely unavailable. FSPs have a low risk appetite for unsecured lending to refugees due to a lack of acceptable collateral and concerns that refugees might be resettled before loans are repaid.
• Refugees face an 'information and idea gap' that limits their entrepreneurial ventures. Young entrepreneurs, specifically in Mahama camp, expressed a strong desire for mentorship and information about business activities in other countries to generate new ideas.
• Mobile money serves as a critical tool for refugees to store cash and protect it from theft, which is a reported problem in camps like Mahama and Gihembe. Shopkeepers in Mahama frequently convert cash receipts into e-currency at MTN agencies at the end of the day.
• Refugees utilize various informal and semi-formal savings mechanisms, including Village Savings and Loan Associations (VSLAs) and rotating savings clubs. While helpful for small investments and emergency costs, VSLAs are limited by a 'forced share-out' rule requiring funds to be dissolved annually.
• The report identifies that including the host community in economic initiatives is essential for maintaining social harmony and expanding the market catchment area for FSPs, allowing a single branch to serve a larger, combined population.
• Restricted mobility and the difficulty of obtaining Tax Identification Numbers (TINs) and work permits force many refugees into casual, low-paid, or informal labor, increasing their vulnerability to abuse.

APA

FSD Africa (2018). Refugees and Their Money – Understanding the Enablers of the Camp Economy in Rwanda. https://fsdafrica.org/wp-content/uploads/2025/05/Compressed.pdf

Chicago

FSD Africa. Refugees and Their Money – Understanding the Enablers of the Camp Economy in Rwanda. 2018. https://fsdafrica.org/wp-content/uploads/2025/05/Compressed.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Refugees and Their Money – Understanding the Enablers of the Camp Economy in Rwanda |date=September 2018 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Compressed.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2018refugees, author = {{FSD Africa}}, title = {{Refugees and Their Money – Understanding the Enablers of the Camp Economy in Rwanda}}, institution = {FSD Africa}, year = {2018}, month = sep, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Compressed.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }