Refugees and Host Communities in Ethiopia at Heart of New ILO and UNHCR Work Pact

The agencies have signed a Supplementary Understanding to strengthen cooperation on decent work, sustainable livelihoods and economic inclusion, connecting refugee protection with practical opportunities to earn a living.

Access to a job, recognised training or the chance to build a business can give refugees greater control over their lives and help the communities receiving them share in economic opportunities. A new agreement between the International Labour Organization (ILO) and UNHCR, the UN Refugee Agency, puts those needs at the centre of their work in Ethiopia. The agencies have signed a Supplementary Understanding to strengthen cooperation on decent work, sustainable livelihoods and economic inclusion, connecting refugee protection with practical opportunities to earn a living.

Connecting protection with opportunities to work

The agreement covers training that responds to market demand, better access to markets, digital inclusion and respect for labour rights. Research, shared knowledge and learning from different approaches will guide efforts to help refugees and host communities become more self-reliant. UNHCR Representative in Ethiopia Aissatou M. Ndiaye described the connection between protection and livelihoods at the signing ceremony: "Protection must go beyond safety. Without access to decent work and livelihoods, people cannot fully realize their potential. This is where ILO's expertise is essential."

Ethiopia's Makatet Roadmap, a five-year national framework for managing its refugee population, provides the policy setting for this work. Khumbula Ndaba, director of the ILO country office covering Ethiopia, Djibouti, Somalia, Sudan and South Sudan, and its special representative to the African Union and UN Economic Commission for Africa, said the government's progress on inclusion creates a foundation for refugees to develop skills, find decent work and contribute to local economies. He identified policy dialogue, capacity building and labour market inclusion as shared responsibilities for the two agencies.

Building on services that have reached more than 524,000 people

The agreement builds on the agencies' global partnership and their cooperation through PROSPECTS, a Netherlands-funded initiative launched in 2019 to improve access to education, social protection and decent work for forcibly displaced people and host communities. Its five partners are UNHCR, ILO, UNICEF, the International Finance Corporation and the World Bank. Since PROSPECTS began in Ethiopia, joint ILO and UNHCR interventions have reached more than 524,000 refugees and host community members with a range of socioeconomic services, providing a base for the expanded cooperation.

Their existing work includes a joint feasibility study on integrating refugees into Ethiopia's Community-Based Health Insurance scheme and a Technical Working Group supporting health inclusion. The agencies have helped develop the Kebribeyah Inclusion Roadmap, which seeks to transform the refugee camp into an integrated urban settlement designed to withstand climate pressures. These initiatives address different parts of inclusion, from exploring access to health coverage to planning a settlement where refugees can participate more fully in the surrounding community.

Skills, youth participation and stronger local partnerships

Entrepreneurship training, financial education and the establishment of the Kebribeyah Satellite Technical and Vocational Education and Training Centre have supported livelihoods and expanded access to accredited training linked to market needs. Through the jointly supported Youth Network Committee, young people from refugee and host communities help design and carry out development solutions affecting their futures. Their participation gives them a direct role in shaping responses to local needs, alongside programmes that build practical skills for employment and business.

The strengthened partnership combines UNHCR's protection mandate and direct engagement with refugees with the ILO's expertise in employment, skills, labour markets, enterprise development, social dialogue and international labour standards. Closer cooperation with Ethiopia's government, employers' and workers' organisations, development partners, private businesses and communities is intended to turn inclusion commitments into lasting economic opportunities. The agreement supports the Global Compact on Refugees and commitments made through the Global Refugee Forum, with refugees and the communities hosting them both expected to benefit from greater access to decent work and sustainable development.