The scale of the global refugee crisis is staggering. Around the world, 68.5 million people have been forcibly displaced. Of this number, 40 million are internally displaced, while 25.4 million have become refugees. Though South Sudan, Afghanistan and Syria account for 57% of refugees worldwide, no jurisdiction is immune from the repercussions of this situation. As conflict and disaster rip through certain regions, neighbouring countries – and continents – often bear the brunt of the human tragedy as people are forced to flee across borders. Humanitarian agencies are being overwhelmed by this challenge.
Fresh thinking is needed, and the private sector – and financial services providers in particular – have a pivotal role to play. From creating identity documents to delivering tailored business training, there is a huge opportunity for private enterprises to engage with refugees. But before this can happen, private sector leaders must reimagine what a refugee actually is: lazy stereotypes abound. Refugees are far from idle and aid-dependent. They are diverse, and many come from middle-class backgrounds or have extensive sector or industry expertise from their home countries.
Hard-luck stories may be the common currency among refugees globally, but they are also united by a drive to better themselves. In many cases, this drive assumes an entrepreneurial tilt. Research from the International Finance Corporation, and others, has made this clear in places like Kakuma, one of Africa’s largest refugee camps. Grocery stores, barbers, tailors and coffee shops line its busy streets. Somali vendors sell mobile phones while Ethiopians are known for their coffee. As such, camps like Kakuma are a ripe business opportunity for any bank or financial institution.
But financial sector engagement with refugees, whether they are in camps or not, remains low because issues around identity and know-your-customer compliance loom large. Regardless, this is a time for banks and other players to step up and find solutions. The business case is clearly there, as is the moral imperative to engage. With humanitarian agencies operating at their limit, it is time for the financial sector to play its part in addressing this next great global challenge.
