Kyiv – The Government of Germany, through KfW Development Bank, agreed with the International Organization for Migration (IOM) to further promote recovery and resilience among internally displaced persons (IDPs) and other affected populations in Ukraine by creating pathways to durable solutions through three new initiatives. The additional EUR 89.9 million provided by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), are expected to benefit at least 250,000 individuals directly and indirectly in 10 regions across Ukraine.

According to the Rapid Damage and Needs Assessment of March 2023,  it is estimated that direct damage to buildings and public infrastructure in Ukraine amounts to USD 135 billion. Approximately 1.4 million residential units were damaged, of which about one-third are beyond repair. As a result, IDPs and other affected populations often find themselves in substandard housing with limited access to essential services. Many have insufficient income to cover their basic needs, as poverty levels nearly quintupled since the start of the war.

“It is one of the priorities of German Ukrainian Development Cooperation to support IDPs and increase social resilience. The partnership of IOM and KfW Development Bank proves to be an effective basis to provide multi-dimensional support in the areas of housing, public infrastructure and livelihoods improvement which are crucial in the current times”, states Martin Jaeger, German Ambassador to Ukraine.

In late 2023, KfW Development Bank and IOM signed agreements for three programmes. The first programme aims to expand an ongoing initiative that provides social and affordable housing to internally displaced and other affected populations in regions that host a considerable number of IDPs.

Concurrently, the Hromada Reconstruction and Empowerment Facility (HREF) will strengthen the capacities of communities to identify and prioritize their own recovery initiatives, with a specific focus on restoring public infrastructure and services coupled with social resilience initiatives.

Finally, the “Livelihood+” was launched to contribute to the socio-economic recovery of Ukraine. It aims to provide IDPs and other affected populations with the necessary skills, equipment and infrastructure to find or provide meaningful employment and lead thriving businesses.

“The support received not only helped me financially but also emotionally to not give up when I was ready to close down the restaurant,” a small business owner from Kyiv region acknowledges after receiving a business grant through “SME Boost”, a project supporting micro and small enterprises funded by the German Government through KfW Development Bank.

The interventions are expected to contribute to gender equality by promoting women's economic empowerment and strengthening their role in local decision-making processes, among others. The initiatives will also focus on the integration of displaced and other vulnerable groups, including war veterans and their families.

"Engaging regional and hromada-level local authorities will ensure a recovery process that is both locally rooted and aligned with the development plans and priorities of the communities,” said Alessia Schiavon, IOM Ukraine Chief of Mission.

Together, these three new initiatives could support at least 80,000 individuals, with an additional 170,000 IDPs, returnees, and other affected populations expected to benefit indirectly from improved infrastructure and services. The initiatives will be implemented in close coordination with the Government of Ukraine in line with national recovery planning.

IOM and the Government of Germany through KfW Development Bank have built a strong partnership in Ukraine since 2020. The newly launched initiatives will both expand and complement these ongoing interventions, based on best practices and lessons learned.