BackgroundThe International Finance Corporation (IFC); the private sector arm of the World Bank Group (WBG); is dedicated to fostering sustainable economic growth in developing countries. This commitment involves financing private sector investments; mobilizing private capital in local and international financial markets; and providing advisory and risk mitigation services to businesses and governments. Recognizing the importance of private sector financial development; IFC aims to contribute to successful and sustainable economies in low- and middle-income countries worldwide. Efficient financial markets play a crucial role in allocating resources productively; facilitating job creation; and spurring economic growth.Within the IFC; the Fragile and Conflict-Affected States (FCS) Africa department is dedicated to supporting stability and growth in FCS economies. These economies require investments that will create jobs; spur economic growth; generate tax revenues; rebuild infrastructure; and instill hope in their populations. Furthermore; the IFC collaborates with the World Bank; the United Nations High Commissioner for Refugees (UNHCR); and other partners to explore ways the private sector can engage with refugees; forcibly displaced persons and their host communities. Our objectives include creating jobs by enhancing access to finance and entrepreneurship; improving the delivery of basic services such as education and energy; encouraging business-friendly policies in areas hosting refugees; and sharing lessons learned and deepening partnerships.One of IFC¡¯s global initiatives; aligned with the goal of increasing financial inclusion; is centered on improving access to housing finance for low-income individuals. The initiative recognizes housing as a basic human need; integral to improving lives and positively correlated with wealth creation; higher educational attainment; and overall social stability. Despite this; the lack of adequate housing remains one of the significant challenges facing Africa.Forcibly Displaced Persons (FDPs); including refugees and internally displaced persons (IDPs); are among the most vulnerable communities globally. Their vulnerability is exacerbated when living in camps; where conditions often fall short of meeting basic human needs. In response; some governments; like Jordan; have initiated efforts to relocate individuals from these camps to more stable housing environments. This approach not only aims to provide better living conditions; but also addresses broader social and economic challenges faced by FDPs. Statistics reveal that IDPs without stable housing are three times more likely to seek financial aid; highlighting the critical link between secure housing and reduced dependency on assistance. This connection highlights the importance of integrating FDPs into IFC¡¯s broader conversation on development and support; making it essential to build bridges that facilitate their transition from vulnerability to stability and self-reliance.Existing Affordable HoUSING models AND ASSUMPTIONSThe focus of this assignment is on FDPs in Kenya; Uganda and Ethiopia who have fled their countries or homes due to genocide; wars; extreme violence; and famine. For this TOR; IFC defines FDPs as refugees; IDPs and asylum seekers.[FM1] [MK2] IFC is actively engaging the private sector and forming partnerships to innovatively address the challenge of sustainable and affordable housing for FPDs in Kenya; Uganda and Ethiopia. This includes exploring options that would be available in the local markets to provide suitable housing solutions. The proposed benefits include providing housing solutions for FDPs; aiding their integration into the Kenyan; Ugandan and Ethiopian economies; generating income for host communities through rental payments; and creating jobs in construction-related sectors.Recognizing the complexity and diversity of challenges faced by FDPs; the scope of this study is to explore models that could work in the Kenya;Uganda and Ethiopia contexts; including the ADU model where possible. Further exploration and adaptation of various models will ensure a comprehensive approach to addressing the housing needs of FDPs.With regards to ADU; the current assumption is that most homeowners outside main urban areas live in single-family houses. And further; in order to expand these houses to build ADUs for backyard rentals; homeowners will need to borrow from local Financial Institutions (FIs). These two premises should be confirmed through this study.In addition; given that most of the housing construction by low-income homeowners in Kenya and Uganda is undertaken without professional technical assistance; and considering the homeowners¡¯ lack of expertise in construction; they will need to obtain not only financial resources to expand their houses; but also construction technical assistance (CTA) to ensure work meets safety and quality standards. Such CTA; may include preparation of Bills