According to the latest UNHCR Global Trends (2019), Ethiopia is host to 733,125 refugees (53% are female and 63% are children and adolescents aged 0-17). The majority of refugee populations are from South Sudan (46.7%), Somalia (26.4%), Eritrea (19.9%), and Sudan (5.8%). Refugees are largely from low income agro-pastoralist backgrounds, have low levels of literacy, and few modern technical skills. Overall, children, adult women, the disabled and the elderly make up around 80 percent of the population and can be considered vulnerable.

The humanitarian landscape of Ethiopia continues to be dominated by challenges posed by intercommunal violence and the resultant mass internal displacements (IDPs). There is a triple challenge of drought impact, localized flooding and the still significant humanitarian and recovery needs of IDPs, returnees and host communities. Assessments as of September 2019 have identified 1.61 million IDPs (307,437 households) internally displaced across 1,149 sites in Ethiopia with 1.07 million IDPs (66.8%) conflict-induced and 402,562 IDPs (25.1%) climate-induced.

Two areas (Shire & Jjijiga) emerged as potential targets and initial priorities amongst the below forcibly displaced hosting areas. Intensely displacement-impacted areas in the Faafan Zone of SRS and the NW Tigray (Shire) zone emerged as potential areas of interest. However interventions may not be restricted to these two areas as support to economic opportunities and necessary market linkages that stretch across different refugee hosting areas may be pursued.

The Partners (IFC, ILO, UNICEF, UNHCR, World Bank) will collaboratively support government-led efforts to strengthen systems and develop and implement policies that promote inclusion and socio-economic development of FDPs and host communities, whilst working closely with local authorities, business/private sector, and communities to identify, maximize, and realize opportunities.