October 19th – 21st 2016.

Juba

Cash-based programming for the food security and livelihoods sector

1
Objectives of this meeting

 Reach a common understanding of the principles

of market-based programming
 Exchange knowledge and experiences on how to
implement market-based interventions in the
South Sudan context
 Overview
Day 1
Basics of cash transfers
Delivery mechanisms
Day 2
Cross sectoral experiences
Financial sector
Market assessments
ICT
Partnerships
Security
Day 3
Retailers
Transfer value calculation
Risk analysis
Cost efficiency and
Targeting
effectiveness
Protection considerations
Response analysis
Presentations by partners
Session 1 – Basics of cash transfers
What is cash-based programming?

Different ways to refer to cash-based programming:

 C&V = cash and vouchers

 CTP = cash transfer programming

 Cash transfers

 CBI = cash-based interventions

 Market-based interventions

 CBT = Cash-based transfers

What is cash-based programming?

Definition
 Cash transfers are assistance to
beneficiaries in the form of cash
payments, bank transfers or mobile
money. Beneficiaries can meet their
own needs in the marketplace.

(CaLP)
Cash transfers can be:

 Conditional or unconditional

 One-off or repeated payments

 Blanket provision or targeted to specific groups

 Implemented alone or in partnership with government agencies

 Cash grants or vouchers

(IFRC)
Cash models
Voucher models
Type of vouchers

 Commodity vouchers

 Value vouchers

New terms being used

 Unrestricted cash

 Restricted cash

 Multisecotral/multipurpose cash
Cash-based assistance can be used in:

1. Pre-disaster

2. Initial stages of a disaster

3. Recovery and protracted operations

4. Permanent/chronic crises

5. During conflict

6. Long-term development and social assistance

Exercise: Testing assumptions

1. If agencies already know what people need, so why give

them cash?

2. Men will spend all the cash on alcohol.

3. Women will be beaten up by their husband in order to get

the cash.

4. Cash transfers will make prices go up.

5. Markets can’t cope with the scale of need.

Testing assumptions (2)

7. People will buy other things, like shoes and clothes or will pay off their
debts.

8. Beneficiaries will be robbed on their way to the shops.

8. People will just buy maize and staple foods of low nutritional value,
not the micro-nutrients they need.

9. Infrastructure, roads and ports are blocked and damaged, so markets

can’t re-stock.

10. The people will be too many and overwhelm the financial institutions.
Session 2 – Delivery mechanisms
 Transfer modalities
Modality Restricted Running
KYC Infstctr Cashless
vs Unrstctd costs
a. Cash in envelope or direct cash U No + No ++

b. Paper voucher R No ++ Yes +++

c. Delivery through micro finance

U Yes +++ No +
institutions and trader networks

d. Bank account U Yes ++++ No ++

e. Pre-paid card U/R No +++++ No/Yes +

f. Smart card U/R No/Yes ++++ No/Yes +

g. Mobile money U Yes ++++ No +

h. Mobile voucher R No +++ Yes +

 Transfer modalities
Modality Restricted Running
KYC Infstctr Cashless
vs Unrstctd costs
a. Cash in envelope or direct cash U No + No ++

b. Paper voucher R No ++ Yes +++

c. Delivery through micro finance

U Yes +++ No +
institutions and trader networks

d. Bank account U Yes ++++ No ++

e. Pre-paid card U/R No +++++ No/Yes +

f. Smart card U/R No/Yes ++++ No/Yes +

g. Mobile money U Yes ++++ No +

h. Mobile voucher R No +++ Yes +

 Transfer modalities
Modality Restricted Running
KYC Infstctr Cashless
vs Unrstctd costs
a. Cash in envelope or direct cash U No + No ++

b. Paper voucher R No ++ Yes +++

c. Delivery through micro finance

U Yes +++ No +
institutions and trader networks

d. Bank account U Yes ++++ No ++

e. Pre-paid card U/R No +++++ No/Yes +

f. Smart card U/R No/Yes ++++ No/Yes +

g. Mobile money U Yes ++++ No +

h. Mobile voucher R No +++ Yes +

 Transfer modalities
Modality Restricted Running
KYC Infstctr Cashless
vs Unrstctd costs
a. Cash in envelope or direct cash U No + No ++

b. Paper voucher R No ++ Yes +++

c. Delivery through micro finance

U Yes +++ No +
institutions and trader networks

d. Bank account U Yes ++++ No ++

e. Pre-paid card U/R No +++++ No/Yes +

f. Smart card U/R No/Yes ++++ No/Yes +

g. Mobile money U Yes ++++ No +

h. Mobile voucher R No +++ Yes +

 Transfer modalities
Modality Restricted Running
KYC Infstctr Cashless
vs Unrstctd costs
a. Cash in envelope or direct cash U No + No ++

b. Paper voucher R No ++ Yes +++

c. Delivery through micro finance

U Yes +++ No +
institutions and trader networks

d. Bank account U Yes ++++ No ++

e. Pre-paid card U/R No +++++ No/Yes +

f. Smart card U/R No/Yes ++++ No/Yes +

g. Mobile money U Yes ++++ No +

h. Mobile voucher R No +++ Yes +

 Transfer modalities
Modality Restricted Running
KYC Infstctr Cashless
vs Unrstctd costs
a. Cash in envelope or direct cash U No + No ++

b. Paper voucher R No ++ Yes +++

c. Delivery through micro finance

U Yes +++ No +
institutions and trader networks

d. Bank account U Yes ++++ No ++

e. Pre-paid card U/R No +++++ No/Yes +

f. Smart card U/R No/Yes ++++ No/Yes +

g. Mobile money U Yes ++++ No +

h. Mobile voucher R No +++ Yes +

Session 3 – Cross sectoral experiences
with cash-based programming
Use of cash-based transfers in…

 Food security

 Nutrition

 Livelihoods

 Health

 Education

 Shelter

 Child protection

 WASH
Session 4 – Market assessments
What is a market?

A market is not just a physical

place where goods are sold; a
market includes the whole supply
chain from producers to consumers
and the factors that influence
them.
What should be in place?

1. Supply (and re-supply) of goods

2. Sellers with resources
3. Physical access
4. People with purchasing power
5. Trader willingness and capacity
6. Reliable payment systems
7. Reasonable and stable prices
Appropriateness of cash-based interventions
Answer the following questions:

1. Are markets operational and physically accessible by targeted households?

2. Is appropriate food available in sufficient quantities and at reasonable prices?

3. Are food markets sufficiently integrated so that food will flow to deficit/target
zones?

4. Are the food markets sufficiently competitive?

5. Will traders respond adequately to any increase in effective demand based on

their storage capacities, supply sources, required quality and preference of
customers, access to credit, etc.?

6. Is it unlikely that cash/vouchers will contribute to rising purchase prices?

Different approaches to market analysis

 Market Information and Food Insecurity Response Analysis (MFIRA)

 Emergency Market Mapping Analysis (EMMA)

 Rapid Assessment for Markets and Markte Analysis Guidance (Red Cross)

 Oxfam 48 hour Assessment Trader Questionnaire

 CaLP’s Minimum Requirements for Market Analysis in Emergencies

 WFP’s comprehensive market assessment

The S-C-P approach to market
assessment

 Structure

 Conduct

 Performance
Market structure

 Number of buyers and sellers

 Public policies and regulations

 Barriers to entry (licence fees, taxes)

 Coordination between supply chain actors

Market conduct

 Price-setting behaviour

 Collusion

 Responsiveness to change

 Level of competition

 Buying and selling practices (weights and measures)

Market conduct – example 1
Market conduct – example 2
Market Structure and Conduct output - example
Market performance
Extent to which markets produce outcomes deemed good or preferred by
society: regular, predictable availability of basic foods at affordable
prices
 Price levels and stability over time and space
 Margins and costs
 Volumes
 Market integration
 Profits: excessive or not
 Product quality
 Food distribution within market
Complementing S-C-P analysis

 Household’s access to markets

 Response implications
Markets are efficient and well-functioning
when:
1. Many buyers and sellers compete, with no agent too powerful to
dominate and no agent able to set prices;

2. Actors have access to affordable inputs, credit and insurance;

3. The government tends to not interfere;

4. All actors have equal access to information about market conditions;

5. Transportation and storage are adequate and inexpensive;

6. Commodity price changes in different markets transmit to each other;

7. Commodity prices are stable and in line with seasonal patterns; and

8. Commodities flow quickly at affordable prices from market to market in

response to changes in supply and demand.
Emergency market analysis - EMMA
Emergency market analysis – EMMA (2)
Markets in South Sudan – by WFP
VAM unit