Using grants to catalyse market systems change in the context of host and refugee communities

The SHARPE programme in Ethiopia leverages grants to stimulate market system changes within host and refugee communities, aiming to integrate these groups into viable supply/value chains and enhance their economies.

This summary paper presents the key findings from a recent study commissioned by SHARPE and FCDO Ethiopia to examine:

• how the programme has used public subsidies (grants) for private sector actors
• how effective grants have been in catalysing the desired market system change
• what lessons can be drawn for similar programmes operating in the context of protracted displacement and large refugee populations

The paper emphasises the importance of proactive engagement with the private sector, strategic support packaging, and a flexible, adaptive approach to programme implementation, providing valuable lessons for similar initiatives in contexts of protracted displacement.

Related reading: Gareth Davies' blog - The art of the deal – using grants to catalyse market systems change

Intervention description

Specific interventions included providing grants to over 100 enterprises, ranging from large national companies to small refugee-owned micro-enterprises.

Activities included supporting enterprises to expand into host and refugee markets, providing technical assistance and facilitating market linkages.

Notable partners included Shayashone, an agro-input supplier, and Shabelle Bank, a provider of Digital Financial Services (DFS). Grants were used to de-risk initial investments and incentivise companies to target refugee and host communities.

The interventions led to increased enterprise engagement and adoption of new practices, with enterprises reporting that they would not have made these changes without SHARPE support.

This programme’s results measurement system underwent a pre-audit review using the DCED Standard.