Report
The Re:BUiLD Uganda Cost Effectiveness Brief evaluates how business grants and mentorship programs impact livelihoods for refugees and Ugandan hosts in Kampala. Through a large randomized controlled trial involving 1,648 micro-entrepreneurs, the study compared three approaches: business grants alone, grants with mentorship, and grants with mentorship plus a shared-fate lottery. While all treatments improved business openness, profits, household earnings, and wellbeing, the data shows that the business grant alone drove the majority of positive outcomes. Mentorship added value for some participants but did not significantly outperform grants alone and increased costs per client.
Cost analysis reveals that grants remain the most cost-efficient modality for increasing business profits and productive assets. On average, it cost $3.34–$3.90 to generate $1 in additional profit for clients receiving only grants, compared to $4.56–$5.31 for those also receiving mentorship. The brief emphasizes that while grants provide the strongest economic returns, program designers should choose modalities based on their target outcomes—such as women's empowerment or social cohesion—where mentorship may still play a meaningful role despite higher costs.
