DHC keynote speech: Advancing financial well-being for the forcibly displaced

Good evening,
Your Royal Highness,
Minister Bettel
Vice President Vigliotti
Your Excellencies, distinguished guests,

It is an honor to join you tonight and a privilege to be part of the distinguished High Jury for the European Microfinance Award, celebrating the achievements of financial service providers who are bringing stability, dignity, and opportunity to people forced to flee around the world.

I speak to you tonight just returning from Ukraine, where winter’s early onset intensifies the harsh reality of a prolonged and devastating war. This year alone, over 150,000 Ukrainians have been forced to leave their homes in search of safety, joining the nearly 4 million internally displaced within Ukraine and the more than 6 million who have sought refuge in neighboring countries. Over 10 million people displaced, and many more directly affected by this full-scale Russian invasion, which shows no sign of abating.

And beyond Ukraine, conflicts are flaring all around the world, stretching humanitarian resources, pushing displacement to record-breaking levels. As I stand here in front of you, an estimated 123 million people worldwide have been uprooted by war, violence, and persecution, the highest since UNHCR, the United Nations Refugee Agency, was created in 1951.

And behind this sobering statistic, there are individuals and families who, despite facing unimaginable hardships, harbor a profound hope: the hope to rebuild their lives, regain stability, and create a secure future for their loved ones.

For these individuals, displacement is rarely temporary. According to a recent World Bank report, a refugee now spends an average of 13 years in exile. Thirteen years—an entire childhood, a large portion of a working life, or the precious years of one’s golden age, spent in unfamiliar environments, far from the support of extended family, and often with limited access to resources and rights. Our responsibility at UNHCR is not only to protect their rights but to provide meaningful pathways to self-reliance, resilience, and ultimately, hope.

And this is what I saw in Ukraine last week. On my journey from the western border to Kyiv all the way to Kharkiv, I witnessed an extraordinary display of resilience. I took trains filled with families determined to continue life amidst the unimaginable challenges of war. Among them were soldiers, quietly making their way back to the front after a brief rest—a reminder of the daily sacrifices made by those defending their country. In Kharkiv, a city on the edge of the conflict, the intensity of war is in plain view. The air reverberates with the sounds of shelling, and air alerts serve as a constant reminder of the proximity of violence. Yet even here, amidst profound loss, I encountered remarkable strength and resilience.

This journey through Ukraine also reaffirmed for me the profound impact that economic inclusion and microfinance can have on people’s lives, especially for those who have been displaced.

In Uzhhorod, near the borders with Hungary and Slovakia, I met with remarkable women who, after being forced to leave their homes in Eastern Ukraine, rebuilt their lives and started businesses with microfinance grants provided by UNHCR. Among them is Olena, a mother who fled Kharkiv and, with UNHCR’s support, started a car wash business—a source of stability and pride for her family and a contribution to her new community.

And in a small town near Kyiv, I met Ludmila, who returned to her destroyed home, rebuilt it with our support, and now supports her family with a thriving goose farm she started in her backyard. It supplies the community and feeds her family. These stories of resilience are a testament to the spirit of Ukrainians everywhere, who, despite tremendous adversity, are determined to rebuild their lives and contribute meaningfully to their communities.

Financial inclusion provides a foundation for stability and self-reliance, offering displaced individuals not only the means to survive but also the tools to thrive, to shape their own futures, and to contribute to their communities with dignity and purpose. At UNHCR, we have seen firsthand how financial inclusion can transform lives. Through microfinance and direct cash support, we can help displaced people address their immediate needs and invest in their futures. This support—whether provided through traditional bank accounts, mobile money, or digital wallets—restores agency to displaced people, enabling them to make their own choices, prioritize for their families, and take control.

But, of course, we do not work alone. Governments and development actors play an essential role in creating the conditions for financial inclusion to succeed. We are deeply grateful to Minister Bettel and the government of Luxembourg for their unwavering commitment to this cause. Luxembourg’s leadership has been invaluable in promoting inclusive policies that empower refugees and displaced communities. I also want to acknowledge Ms. Vigliotti, Vice-President of the European Investment Bank, who is spearheading the EIB’s engagement on refugee issues. Her support, demonstrated by her presence at the Global Refugee Forum last December, strengthens our collective efforts to create sustainable solutions for displaced people.

We also know that financial inclusion requires a broad network of partnerships beyond governments and international financial institutions. The private sector and civil society—represented here tonight by Her Royal Highness the Grand Duchess of Luxembourg—bring essential innovation, resources, and advocacy to this mission. Their contributions, alongside those of NGOs, are critical to ensuring that financial services reach those who need them most. Local and national NGOs, in particular, are invaluable partners; their deep understanding of local realities and established connections with communities make them especially effective in driving financial inclusion at the grassroots level. UNHCR is committed to expanding our collaborations with these local NGOs, who now represent 85% of our partners and receive 54% of our partnership funds.

The three finalists we honor tonight are perfect examples of these grassroots actors making an extraordinary difference – Al Majmoua in Lebanon, FATEN in the Occupied Palestinian Territories, and RUFI in Uganda. Each of these organizations illustrates in their own way the core principles that drive successful partnerships in financial inclusion: creating enabling environments, leveraging comparative advantages, and building shared accountability.

Finalists

1. Creating an Enabling Environment: Al Majmoua in Lebanon

Creating an environment where financial inclusion can thrive requires inclusive policies and frameworks that open doors to services, skills, and opportunities. Lebanon, as we know, hosts the highest number of refugees per capita in the world. This small country, already grappling with an economic crisis, has extended incredible hospitality to displaced individuals from Syria and Palestine. Yet, the strain of these challenges is significant, impacting both Lebanese citizens and refugees.

Al Majmoua, Lebanon’s largest microfinance institution and a long-standing partner of UNHCR, has responded to this need with unwavering dedication. Their work goes beyond providing financial services; it fosters resilience and gives refugees and vulnerable Lebanese alike the tools to support themselves. Through small loans, entrepreneurial training, and financial literacy programs, Al Majmoua offers individuals a pathway to economic self-reliance, helping them rebuild their lives with dignity. By focusing on women and youth, Al Majmoua not only provides economic opportunities but also promotes inclusive growth that benefits all. In a country facing immense difficulties, Al Majmoua’s work exemplifies the critical role of microfinance in creating an enabling environment for financial inclusion, resilience, and hope.

2. Leveraging Comparative Advantages: FATEN in the Occupied Palestinian Territories

Successful financial inclusion initiatives also leverage the unique strengths of each partner—humanitarian organizations bring deep insights, development agencies provide resources, and the private sector offers innovation. FATEN, operating in the Occupied Palestinian Territories, is a powerful example of this principle in action. Working in a region marked by ongoing conflict and economic instability, FATEN provides financial services tailored to the needs of displaced and vulnerable populations, including microloans for small businesses, housing improvement loans, and educational programs that foster long-term resilience.

Through these services, FATEN supports immediate needs and broader social stability, recognizing that financial stability is intertwined with health, education, and community well-being. Though UNHCR does not operate within the Occupied Palestinian Territories, we recognize and admire the work of organizations like FATEN. Their comprehensive approach to financial inclusion demonstrates how partnerships that draw on each partner’s strengths can create lasting impact. As Vice President Vigliotti highlighted at the recent Global Refugee Forum, leveraging comparative advantages allows us to build powerful coalitions for sustainable change. FATEN’s work illustrates this beautifully, showing how financial inclusion can transform lives in some of the world’s most challenging settings.

3. Building Shared Accountability: RUFI in Uganda

In Uganda, RUFI exemplifies shared accountability, a key pillar of good partnership. This principle fosters trust and collaboration with local communities and authorities. Uganda is home to Africa’s largest refugee population and has one of the world’s most progressive refugee policies, offering refugees access to land, education, and employment. RUFI, originally founded in South Sudan, has embraced this inclusive approach, adapting its services to support both refugees and host communities within Uganda’s refugee settlements.

RUFI is a refugee-led organization, with 80% of its staff themselves forcibly displaced, bringing a unique and profound understanding to the services they offer. Their deep connection to the communities they serve allows RUFI to build trust, offer relevant services, and foster a sense of shared accountability. By providing group loans, business incubation, and advocating for resource-sharing agreements, RUFI strengthens both refugee and host communities, creating a model of financial inclusion that is sustainable and deeply rooted in community needs.

RUFI’s commitment to shared accountability is also reflected in their collaboration with UNHCR and other partners. Through partnerships with Sida and the Grameen Credit Agricole Foundation, we have reached over 130,000 clients from both refugee and host communities, demonstrating the impact that trust-based partnerships can achieve. By aligning our goals and working together, we have established a sustainable model that fosters self-reliance and resilience.

These three exceptional finalists—Al Majmoua, FATEN, and RUFI—show us what is possible when we commit to creating enabling environments, leveraging our unique strengths, and building partnerships based on shared accountability. They remind us that financial inclusion is more than a technical solution; it offers displaced individuals the tools to rebuild their lives and regain a sense of control, security, and hope.

As we honor their achievements tonight, let us also reflect on our collective responsibility. Each of us—whether in government, humanitarian organizations, development agencies, or the private sector—plays a role in building partnerships that empower displaced people. Together, we can create the structure that enables displaced individuals to move from survival to stability, from crisis to contribution.

Thank you.