Paradigm Shift: How investments can unlock the potential of refugees

Publication date: 
October 2018
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Paradigm Shift tells a story of need, opportunity, and promise, and presents an exciting pathway for investors to build a sustainable refugee investment strategy. The report presents a market that is both hopeful and often overlooked because of the high perceived risks associated with investing in refugees. The report’s data reveal that refugees are indeed employable, hardworking, credit-worthy, and ultimately, investable—facts that are already benefiting smart investors and their refugee partners. International donors, most notably the United Nations, are also pressing ahead to fill the massive funding gap in their budgets to finance the 2030 development agenda represented by the 17 Sustainable Development Goals, to which global forced migration is inextricably linked.

Analysis for this report reveals that innovative refugee investments are already taking shape—even in a resource-constrained environment where billions of dollars rest on the sidelines, waiting for guidance on how to engage. The RIN conducted over 100 interviews for this report to understand the primary barriers to refugee investing and how existing efforts are overcoming them. Concerns around sourcing, structuring, human capacity and restrictive policy and regulatory environments topped the list of challenges for investors. Meanwhile, the report shares several case studies of deals demonstrating how the use of blended capital and other creative financing structures can mitigate these risks.