Understanding the economic repercussions of the forcibly displaced

The Africa Forum on Displacement recently convened leaders to address the economic repercussions of forced displacement in Africa, where 45% of the global displaced population resides. With an estimated 117.2 million people projected to be forcibly displaced or stateless in 2023, the region faces a significant challenge. CNBC Africa had the opportunity to engage with Isaac Kwaku Fokuo, the Founder of Amahoro Coalition, to delve into the economic implications of this crisis. Fokuo emphasized the critical need for stability in African nations to foster prosperity and empower individuals to secure decent economic livelihoods. The displacement of 44 million Africans, often due to factors beyond their control, poses a severe obstacle to economic growth across the continent. Instability, whether from conflict or climate-related events, leads to economic stagnation and hampers private sector activity, ultimately hindering Africa's overall prosperity. To address these challenges, Fokuo underscored the necessity for both public and private sectors to collaborate and drive market-driven solutions. He highlighted the pivotal role of the private sector in supporting displacement persons, not solely out of charity but as a strategic investment in regional stability and sustainable economic growth. Fokuo further pointed out that while governments in Africa have made commendable efforts in welcoming refugees and enacting supportive policies, private sector engagement is indispensable for achieving long-term solutions. Amidst the continent's burgeoning private sector growth, businesses are increasingly expanding across borders and must prioritize stability and opportunities for economic advancement in all regions where they operate. Fokuo urged companies to view investment in displacement-affected areas as a means to drive economic development, create employment opportunities, and foster collaboration between host and refugee communities. Beyond economic interests, he emphasized the moral imperative for businesses to contribute to uplifting all Africans and ensuring a peaceful and prosperous future for the continent. When discussing the root causes of displacement, Fokuo acknowledged the impact of both conflict and climate change as significant drivers of the crisis. While efforts to address climate change are gaining traction on the continent, resolving political conflicts remains a complex challenge. He stressed the importance of private sector involvement in advocating for sustainable political solutions and collaborating with governments to address underlying political issues. In terms of financing gaps, Fokuo highlighted the economic potential of refugee settlements and camps, citing a study that indicated the economic viability of such spaces if treated as regular counties. He emphasized the need for increased investment in these areas to unlock economic opportunities, create jobs, and promote sustainable development. Fokuo outlined initiatives by the Amahoro Coalition to attract investments in refugee settlements, such as establishing factories that benefit both host and refugee communities. By leveraging the economic potential of displacement-affected regions, businesses can not only drive profits but also contribute to social welfare and economic growth. By bridging the gap between private sector investment and humanitarian assistance, African leaders aim to address the displacement crisis through innovative, market-driven solutions that prioritize economic empowerment and sustainability.