Cash Transfer Programming Series

Cash Transfer Programming in Complex Emergencies

The case of Afghanistan

Urayayi Gregory MutsindikwaCash Transfers Focal Point/ Specialist

Afghanistan

Cash Grants – Unconditional/ Conditional

Vouchers - Commodity/Cash Vouchers - open/closed/electronic

Cash for work - *CAVES – Community participation; Asset creation; Vulnerability considered; Entitlement and Seasonality

Social Transfers - Repeated, unconditional, predictable cash transfers provided to longer-term vulnerable or destitute HHs

Cash Transfers definition and typesWhat is CTP?

‘CTP in emergencies is one form of humanitarian response, which can be used to meet basic needs and/or protect, establish or re-establish livelihoods’ (CaLP CTP Basic - Level I Training)

‘Cash interventions that transfer resources to people by giving them cash or vouchers’ (ODI Good Practice Review)

When CTP is Appropriate?

Timing of Cash Transfers

• Preparedness and activities during (emergency phase) and immediately after a disaster (early recovery)

• Relief/recovery /development are concurrent events in practice.

• CTP avoids development phase cash interventions (microfinance, loans etc)

Principles of cash transferFood insecure or resource poor targeted (poorest of the poor)IDPs and disaster affected reachedPhysically vulnerable targeted‘Ownership’ by the communityGender sensitivityFair and equitable payLivelihoods not undermined

Food insecure or resource poor targeted (poorest of the poor)IDPs and disaster affected reachedPhysically vulnerable targeted‘Ownership’ by the communityGender sensitivityFair and equitable payLivelihoods not undermined

Cash Transfer Process – CTP II curriculum

Fears about Cash

CTP has different, not necessarily greater risks

CTP has different, not necessarily greater risks

Participatory Approaches Participatory Approaches

Conditionality Restrictions

Conditionality Restrictions

Risk Analysis

Risk Appetite – Accept, Control, Avoid, Transfer

Advantages of Cash/Vouchers

The Global Picture• Continuous growth of cash and voucher

programmes among humanitarian agencies

• UN shift towards CTP (even WFP - 30 to 40% target by 2015), UNHCR, UNICEF, OCHA

• Donor policy and funding shift (ECHO food assistance policy; DfID /UK-aid; USAID)

• Increased role of private sector

• Still lots of scope for innovation and more risk-taking

The CaLP – Shift in Focus by Timeline• Consortium of 5 INGOs, BRC,

OGB, NRC, ACF & SC• The 5 form steering committee to

support capacity building, research and information-sharing on cash transfer programming as an effective tool to help deliver aid in times of crisis.

• Strategic partnership with International Federation of the Red Cross and Crescent Societies and the wider community of practice

2006

2015

Potential for CTP at scale & speed ideal for Afghanistan – an Integrated Market System

Markets in Afghanistan are generally integrated within; and with regional

countries and are functional. CTs may not be ideal where markets

are not existing!

ALWAYS do market assessments to

ascertain functionality before deciding for CASH/VOUCHERS

ALWAYS do market assessments to

ascertain functionality before deciding for CASH/VOUCHERS

Needs detailed market assessments

Cash/Voucher Working Group

FSACFSAC

FSAC INTER CLUSTER

SHELTERWASH

NFIPROTECTIONNUTRITION

HEALTHEDUCATION

Current Achievements

• Established a Working Group under FSAC• 4 Cash Transfers Trainings – 3 basic and 1 advanced

in Kabul and Mazar (Northern region)• Established a CTP website: http://afghanctp.org/en• CTP guidelines have been developed based on the

lessons learnt + Case studies guidelines• New technologies e.g. M-Paisa piloted with Roshan

Some Major Cash/Voucher Programmes in Afghanistan in 2012

Donor Project Est. budget $/€/£DFID DFID-funded M-Paisa project - 5 months for 5,690 HHs in

Faryab, Samangan, and Jawzjan @ AFN 8,400 each£1,000,000.00

ECHO The ECHO-funded Drought Response for five NGOs (Intersos, ACTED, Oxfam Novib, Save the Children and People in Need) for 14,422 HHs - 1,870 UCTs and 12,552 CFT/CFW

€2,841,891.00

ECHO/ERF NRC – ECHO-funded cash for Emergency Programme NRC has a component of UCT for 1,000 HHs, CFTS – 500 HHs900 HHs @$60-65/HH – with Cash for Winter Fuel

€2,836,110.76 &

$59,920.00SIDA/NMFA/ TELETHON

NRC Cash for Shelter in Nangahar, Hirat, Kunduz and Kabul, to date > 1,600 HHs @ $2,700 each (on going project)

Approx. $4,500,000.00

WFP 160,000 HHs - monthly paper-based value voucher of approximately $25 provided to beneficiary households for 6 months on unconditional basis, and redeemable for food at selected shops

>$24,000,0000.00

Example 1: Conditional Cash Transfers Experiences NRC Cash for Shelter over 7

monthsParameters Direct Material Support Community Driven

Layouts Fixed/standard Flexible with framework

Handing over Mostly not on time Before time

Occupancy rate 80/108 = 74% 260/294 = 88%

Adjustments after hand over

40 destroyed and extended None reported so far

Economical responsibilities Less economical burden to beneficiaries

More burden to beneficiaries

Staffing 6 8

Shelter units 108 294

Cost/Shelter USD 3000/30m² ($100/m²) USD 2700/41.07m² ($64/m²)

Quality Fair Good to Very Good

Beneficiary satisfaction Low to Medium High

Example 2: ACF Afghanistan CFW Comparison Study, 2011

Key budget lines Total E5K - CFW % Total F7C In-Kind %

HR costs 101,828 13 190,590 28

Running costs 192,270 24 162,736 24

Received by Beneficiary

505,902 63 318,137 47

Total Budget 800,000 100 671,463 100

no. of beneficiaries 4,000 2,000

cost per beneficiary 200 336

The table shows that E5K project was more efficient and spent less on overheads and HR and more on beneficiaries.

Source – ACF Afghanistan CTs Evaluation November 2011

Examples 3 – Findings from the field

Findings from HHs Expenditure Patterns Figures on CTs in the Afghanistan

Aspect Amount in Afs/$/€

Labour Rates/day Afs 250 - 350$ 5.00 - 7.00€ 4.15 – 5.80

Food Basket in Afghanistan/month

Afs 4,000 – 6,000$ 80.00 – 120.00 € 66.00 – 99.00

Range of CT rates by NGOs in Afghanistan/month

Afs 2,050 – 3,500$ 41.00 – 70.00€ 33.83 - 57.75Approx 51% - 87.5%

Cash delivery modalities in use and possible in Afghanistan

• Direct cash distribution (most common)

• Use of mobile phones (DFID - Roshan)• Hawala system (ACF study)• Vouchers (WFP)• Scratch Cards • Pre-paid Debit/ Smart Card• Use of banks• Use of point of sale machines

Limitations for CTP in Afghanistan

• Access• Targeting• Redistributions• Resistance by agencies from ‘comfort zones ’• Corruption• Gender • Perceptions

Suggested Solutions for CTP in Afghanistan

• Community involvement• Embrace technology• Prepositioning and contingency planning• Advocacy• Training and capacity building• Coordination• Accountability and Complains mechanisms

Thank You – Tashakoor!!

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Questions?