From Forced Displacement to Enterprise, How Inkomoko is Promoting Inclusive, Durable Solutions for Refugee Livelihoods

Julienne Oyler

With global refugee numbers growing fast, aid budgets falling and humanitarian stipends for refugees shrinking, the current humanitarian system is under great strain. Africa’s 50 million forcibly displaced people are increasingly looking to their entrepreneurial skills to meet their basic needs. Fortunately, people affected by forced displacement are very often high-potential entrepreneurs, capable of growing businesses that drive economic growth for themselves and their communities. 

Since 2012, Inkomoko has helped transform more than 90,000 refugee, women and youth entrepreneurs into small and medium sized business operators through financial assistance, training and access to markets. We are a social enterprise with over 600 staff working from 30 offices across the continent. We are also the largest lender to refugees in Africa, having disbursed more than $30 million in affordable financing to small and medium sized businesses. 

With operations in Rwanda, Kenya, Ethiopia, South Sudan, and soon to be launching in Chad, Inkomoko is committed to building a future where people in communities affected by forced displacement are recognised for their potential and can live self-reliantly. We are growing rapidly to meet the challenges of displacement. We plan to expand our operations to positively impact the lives of 7.6m people by 2030 by serving 550,000 small businesses in eight African countries, creating 825,000 jobs.

Inkomoko’s mission is to build thriving communities where people affected by forced displacement have the tools and resources they need to succeed, giving them access to integrated markets, and creating an operating environment with inclusive policies for all to contribute. We are developing new ways to enable displacement affected people to thrive, building meaningful market linkages, cultivating partnerships with the private sector, and advocating for economic inclusion.

Inkomoko provides support through the community itself; one-third of our staff have experienced forced displacement themselves. Our training and consulting happens at the local level, and our business growth services staff focus on the essential skills needed to build a successful small- or medium-sized business — cash flow management, inventory management, human resources, bookkeeping and more.  

For businesses that need growth capital, we provide financing through below-market-rate lending products, including Sharia compliant investments. Our initial loans are typically small, around $500 for new clients. As clients succeed and their businesses grow, Inkomoko stays with them on their journey, often providing multiple loan cycles (and investments up to $50,000) as their businesses diversify and expand. Many of our clients are repeat Inkomoko borrowers.

The combination of these supports – training, consulting, and financing – have a dramatic impact on business revenue and income, with businesses experiencing on average 70% revenue growth in the first six months of support. These businesses not only directly impact the entrepreneur and their family, but also provide much needed employment opportunities to their family and neighbours.

Clients who receive financing repay flexibly, in small amounts, over a 6-18 month period. Inkomoko does not take collateral and our loans are non-compounding. We lend at below market rates which at 10% is typically half the interest rate of regular financial institutions. With a 96% loan repayment rate, we are proving that displacement-affected communities are as investable as any other.

Our work with African entrepreneurs demonstrates that all the problems on the continent have solutions that already exist on the continent. It is time to change the narrative on refugee camps and host communities, and start seeing them as the vibrant, investable markets they are rapidly becoming. We envisage a future driven by entrepreneurs where women, young people and refugees are engaged in business, bringing new products and services to their clients, and where African solutions are unleashed to solve African problems. 

Julienne Oyler is

CEO, Inkomoko

Kigali, Rwanda