In a significant policy shift, the Ethiopian government has granted refugees the legal right to work, marking a transformative step for over 800,000 refugees in the country. This decision allows individuals like Lula Maygag Guray, a Somalian refugee residing in Ethiopia since 2018, to operate businesses legally and contribute to the local economy. "I welcome the recent announcement that we can work in the country," said Guray, who has been informally selling samosas and injera to support her family.
Ethiopia's move is part of a broader initiative supported by the World Bank through the Economic Opportunities Program (EOP), which began in 2018 with a US$202 million IDA financing package. The program aims to create sustainable economic opportunities for both Ethiopians and refugees by implementing policy and legal reforms. It also involves collaboration with organizations such as UNHCR, GIZ, and FCDO to enhance global refugee policies.
The new directive under Ethiopia's Refugees Proclamation provides operational details for refugees to access formal employment, start businesses, and participate in development projects. Senidu Fanuel, Private Sector Specialist at the World Bank, emphasized its significance: “It is more than just a policy document; it's a statement of values, a commitment to human dignity."
This change could tap into the skills and entrepreneurial spirit of refugees like Eritreans with high education levels or Somali traders with strong networks. As Ethiopia develops its manufacturing sector and industrial parks, refugees could become an essential workforce component.
Globally, Ethiopia's approach offers lessons on refugee inclusion by aligning with frameworks like the Global Compact on Refugees. The World Bank remains committed to supporting Ethiopia in this endeavor.
Key provisions of the directive include granting refugees rights to work legally, own businesses, access financial services, enjoy greater mobility beyond camps while maintaining registration systems, and improved access to social services such as education and healthcare.
Story by Senidu Fanuel, Senior Private Sector Specialist and Alejandro Espinosa-Wang, Senior Economist at the World Bank.