When war broke out between Ethiopia and Eritrea in 1998, Michaele Haile left his home and sought refuge in Ethiopia. For years, like many refugees, he was unable to work outside the camp and relied on low-paying jobs within it. His experience is shared by others, such as Muetaz Mhd Semir, who fled Syria in 2011 and opened a restaurant in Addis Ababa, and Ebtesam Khalid Mohammed, who escaped Yemen’s civil war in 2015 but faced repeated setbacks trying to start a business due to legal restrictions.
In 2016, Ethiopia’s government made nine pledges at the United Nations General Assembly, with four focused on improving work rights for refugees. Following this, the World Bank launched the Ethiopia Economic Opportunities Program (EOP) in 2018. The program, financed by the International Development Agency, the Foreign Commonwealth Development Office, and the Global Trust Fund for Forced Displacement, aimed to help government institutions better support refugees.
One of EOP’s main objectives was to help Ethiopian institutions identify barriers to refugee employment. These efforts led to the introduction of Refugee Proclamation No. 1110/2019, which for the first time allowed refugees to seek employment, self-employment, and business licenses in Ethiopia. To implement this law quickly, the Refugees and Returnees Service (RRS) issued a right to work directive in 2020, with support from EOP.
Michaele Haile benefited from these changes. In 2023, he received his work permit. “Employers started taking me seriously as a candidate,” he said. “They stopped making excuses not to hire me.” He was able to obtain a Tax Identification Number, open a bank account, and receive proper payments. “I once received ETB 40,000 when I should have been paid 100,000 because I didn't have a TIN,” he recalled. Now, his income is stable.
The directive also made it easier for refugees to start businesses. Previously, they faced high capital requirements. New regulations, developed with EOP’s help, now allow refugees to engage in commerce with more reasonable requirements. Ebtesam Khalid Mohammed was among the first to benefit. In 2023, she received a business license and TIN. “Through the support of RRS, I was able to make my business formal with a capital of only ETB 1,000,” she said.
Muetaz Mhd Semir’s restaurant chain has grown to eight branches, employing over 700 people. He is now working with authorities to formally register his business and obtain work permits for refugee employees. “I want to pay taxes, create opportunities for others, and contribute to this economy,” he said. He also received recognition at the TikTok 2024 Awards in the Food and Cooking category.
Since Ethiopia introduced its new refugee law, more than 24,000 refugees have accessed economic opportunities. This includes over 16,400 residence permits, 6,600 work permits, and 1,200 business licenses. The EOP program has also helped create over 25,000 jobs for Ethiopians in industrial parks across several cities.
Ethiopia made further commitments at the Global Refugee Forums in 2019 and 2023. Programs like EOP have played a significant role in making these commitments a reality. The experiences of Michaele, Ebtesam, and Muetaz illustrate how new policies are enabling refugees in Ethiopia to become active contributors to society.