Africa’s displacement zones are emerging as one of the continent’s most overlooked financial frontiers, with a new report estimating a 3.2 billion dollar opportunity for formal financial services in communities often viewed only through a humanitarian lens.
The report, released by Amahoro Coalition, argues that displaced populations across Africa represent a largely untapped market for mobile money operators, fintech firms and other financial service providers, even as competition for mainstream consumers grows more intense across the continent.
While more than 850 commercial banks and over 1,200 fintech companies are already competing for Africa’s wider consumer market, the report says fewer than 10 formal financial institutions have built products specifically for the continent’s 27 million displaced people. That gap, it argues, leaves a major commercial opening in areas where mobile money adoption is already strong and economic activity is more vibrant than many assume.
Drawing from household survey data covering more than 10,000 families in countries including Kenya, Uganda, Ethiopia, Somalia, Nigeria, Niger, Mali and Cameroon, the report challenges the notion that displacement zones are purely aid dependent spaces. Instead, it presents them as underserved economic markets with concentrated demand, available labour and little formal competition.
Its findings suggest that more than half of Africa’s displaced population is already economically active. It also states that displaced entrepreneurs fail at a lower rate than businesses in surrounding host communities, while lenders serving refugees have recorded repayment rates above 95 percent. In displacement affected areas, about 56 percent of farmland is said to remain unused, pointing to a large agricultural opportunity that has yet to be fully tapped.
Tito Mbathi, Strategy Custodian for Partnerships at Amahoro Coalition, said the goal is to move the conversation beyond humanitarian intervention and focus more directly on commercial potential.
According to him, the private sector needs to see displacement not only as a social challenge but also as a space where investment can generate both economic returns and meaningful impact.
The report identifies five sectors where displaced communities are already contributing to economic activity and where early investors or operators have shown that commercial success is possible.
Agriculture stands out as one of the biggest openings, with an estimated 2.4 billion dollar output potential if access to land and supporting systems improve. In Nigeria and other conflict affected countries, many displaced people come from farming backgrounds but remain excluded from formal agricultural value chains because of insecurity and displacement. Amahoro Coalition says practical entry points already exist, including out grower arrangements, off taker networks and the use of displaced persons as extension workers and delivery agents in difficult to reach areas.
Financial services are at the centre of the report’s argument. It estimates a 3.2 billion dollar opportunity in a market where formal competition remains almost non existent. One example cited is MyBucks, which opened what was described as the world’s first bank branch inside a refugee camp in Malawi and reportedly turned profitable within its first year.
The report also points to a growing opportunity in supply chain and logistics as aid delivery systems shift from direct food distribution to digital vouchers. According to its estimates, that transition could unlock a 720 million dollar logistics market for operators willing to work in areas where infrastructure is already present but commercial participation remains limited.
Frederick Deegbe, West Africa Private Sector Partnerships Lead at Amahoro Coalition, said the organisation does not approach companies with a charity based argument. Rather, it studies business models to find commercially sustainable ways of integrating displaced people into business operations while working with governments, development partners and the private sector to align growth with opportunities in affected communities.
Entrepreneurship is another area where the numbers are particularly striking. The report estimates that about 3.4 million displaced led businesses are generating 4.1 billion dollars in annual earning potential across Africa. It argues that many of these businesses are not only surviving but also expanding and creating jobs at rates that compare favourably with businesses in surrounding communities.
Manufacturing also features strongly in the report’s findings, with 1.5 million displaced workers said to already be active in the sector, contributing an estimated 2.8 billion dollars in annual output. One example highlighted is Kivu Society Corporation, a business founded by Amahoro Fellow Amos Kwizera in eastern Democratic Republic of Congo. The company built a juice manufacturing operation in a conflict affected area and later secured a distribution partnership with Coca Cola, challenging assumptions about what is possible in displacement settings.
For Amahoro Coalition, the message is clear. These communities should not be viewed solely as aid recipients waiting to be rescued, but as markets with customers, workers, entrepreneurs and businesses that are ready for investment.
The report appears to be gaining attention among business leaders. Kabir Ibrahim, President of the Nigeria Agribusiness Group, said the presentation shifted his perspective and convinced him that businesses should keep an open mind about the opportunities in displacement economies. AgroLog Ltd Chairman, Manzo Maigari, also described the inclusion of displaced persons in agricultural value chains as an economic necessity rather than a matter of charity.
Amahoro Coalition is now urging African and international investors, private sector leaders, development finance institutions and policymakers to explore commercial opportunities in displacement affected markets. Through its Amahoro Fellowship, the organisation says it has already supported 129 fellows, helped create more than 2,200 jobs and unlocked over 4 million dollars in external funding for displaced led businesses.
The coalition says the report is intended to push a wider rethink across boardrooms and policy circles, especially at a time when Africa’s financial services industry is searching for new growth areas. For fintech companies, mobile money operators and investors willing to move early, displacement economies may offer one of the clearest untapped opportunities on the continent.
