Report-Cash grants show positive impact and most effective way of aiding refugees.
The Latest study by the international rescue committee has revealed that Cash grants show large, persistent positive impacts in aiding refugees.
A randomized controlled trial (RCT) investigated the impact of cash grants and mentorship programs on boosting micro entrepreneurship outcomes among economically vulnerable refugees and Ugandan nationals in Kampala, Uganda.
The study found that cash grants significantly improved business profits, household well-being. and social cohesion over a 12-month period – particularly benefiting men and larger businesses.
The study results showed that cash grants led to lasting positive impacts and that all groups who received cash experienced improvements in their household wellbeing-including enhanced food security, increased assets and higher savings.
This was disclosed by Elijah Okeyo the executive director of the international rescue committee during the official launch of the findings from Re:BUiLD’s RCT research on the Impact of Cash Grants and Cash + Mentorship on Ugandan and Refugee Business Owners in Kampala, Uganda.
According to the findings, beyond profit, the cash grants tto refugees notably increased business performance in several ways.
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This included a higher likelihood of businesses being actively operated by participants and the dedication of more time to their enterprises, with the potential to enhance business performance.
Uganda is a host country to over 1.9 million refugees who have fled their countries because of armed conflict, political persecution and hunger.
Baseera Agnes, a protection officer legal at the office of the prime minister says while the government of Uganda has gazzetted areas for refugees they have a right to movement and a right to engaging in economic activities for their survival and improvement in livelihoods.
The study shows a significant increase in the value of productive assets-such as business capital and inventory–suggesting that participants invested significant portion of the cash grant in their businesses.
For men, monthly business profits increased by approximately US$27, a trend that was sustained for over 12 months after the program ended.
The study suggests that receiving cash grants enabled participants to address financial capital challenges, creating a more stable environment for businesses to thrive.
The study was led by the International Rescue Committee (IRC) Refugees in East Africa: Boosting Urban Innovations for Livelihoods Development (Re:BUiLD) program in partnership with researchers from the Center for Global Development (CGD), University of Rochester,
Economic Policy Research Center (EPRC), and Georgetown University, and with funding support from the IKEA Foundation and the Innovations for Poverty Action (IPA) through the IPA and Abdul Latif Jameel Poverty Action Lab Displaced Livelihoods Initiative.
