1. Mozambique Food Security Cluster After Action Review
27 April 2017
Maputo
Cash Transfers Programming – WFP Food Assistance Approach

2. Cash Based Transfers
Objectives of the Presentation
Ensure common understanding of what cash based transfers are and applicability in humanitarian assistance
Address the basic pillars of food security and principles of response
Discuss response analysis and distribution modality / delivery mechanism choice
Present audience with some practical options on wider adoption of CBT
While this presentation is about cash transfers programming, the explicit focus on food and nutrition security appreciates the overall objective of the conference, as well as the experiences and responsibility of the presenter. Additionally, it is noteworthy that food and nutrition security represents a significant component of cash transfers in the humanitarian assistance space.

3. WFP Cash-Based Transfers
Presentation Outline
Overview of Cash Based Transfers Programming
Food Security Overview & the WFP Food Assistance Toolkit
Key Considerations and Lessons Learnt in CBT

4. Overview of Cash Based Transfers Programming
Part I
Overview of Cash Based Transfers Programming

5. Cash Based Transfers Definitions
“Cash transfer programming in emergencies is one form of humanitarian response which can be used to address basic needs and/or protect, establish or re-establish livelihoods.”
IFRC and ICRC
Guidelines for cash transfer programming
Transfer of resources using market mechanisms. (WFP)
As such responds to problem of ‘access’ not ‘availability’, e.g. people can’t afford food, where there is no shortage.
C&V = cash & vouchers
CBI = Cash-Based Interventions
MBI = Market Based Interventions
CTP = Cash Transfer Programming
An overview of definitions:
While different organizations / practitioners may apply different definitions, most are similar with the aim of using markets to directly provide assistance where is is require.
Given that is is generally acceptable that cash transfers have a role to play in humanitarian assistance in general and food security in particular, the presentation will not go into details of why cash and drivers for change. Or intricacies linked to conditionality and restrictions.
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)

6. Cash Based Transfers Programming
Types of CBT Programmes
Cash Based Transfers
Cash
Vouchers
Commodity
Value
1. Cash Based Transfers are tools that can be used in humanitarian assistance to complement or in place of in-kind assistance
They are objective neutral
They are not programmes but rather a means of delivering on the programmes.

7. Cash Based Assistance
Why the Transition from Food Aid to Food Assistance?
Food insecurity results from different factors calling from diverse response options – One Size Does Not Fit All
Shift to people centric approaches (putting beneficiaries at the centre of their support)
Focus on local food production & market development
Social-economic factors: cost efficiency & effectiveness considerations

8. Part II
Food Security Overview & The WFP Food Assistance Toolkit – Response Decisions

9. 1974 … Food Security is defined as Access to Sufficient food
Food Assistance
What is Food Security?
… an evolving concept ...
1974 … Food Security is defined as Access to Sufficient food
1950s … 60s – food security was equated with self sufficiency in major staples
Current Definition: Food security is achieved when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.
From starches to calories to nutrients

10. Food Security Pillars of Food Security * WEATHER VARIABILITY
AVAILABILITY
* DOMESTIC PRODUCTION
* IMPORT CAPACITY
* FOOD STOCKS
*FOOD AID
IN-KIND / VOUCHER
ACCESS
*PURCHASING POWER
*INCOME OF POPULATION
*TRANSPORT AND MARKET INFRASTRUCTURE
CASH / VOUCHER
UTILIZATION
*FOOD SAFETY
*HYGIENE AND MANUFACTURING PRACTICES
*DIET QUALITY AND DIVERSITY
BCC / LEGISLATION
STABILITY
* WEATHER VARIABILITY
* PRICE FLUCTUATIONS
* POLITICAL FACTORS
* ECONOMIC FACTORS
KNOWLEDGE / MITIGATION
Food Availability
Physical & Economic Access to Food
Food Utilization
Sustainability – Stability of Supply and Access

11. Food Security WFP’s Food Assistance Tool-Kit Food Assistance In-Kind
Cash
Vouchers

12. Food Security The Food (Nutrient) Gap
The food gap is the difference between nutritional needs and what targeted beneficiaries are able to provide for themselves without adopting distressed strategies.
Nutritional Needs:
Average intake of 2,100 kcal/p/day with an appropriate proportion of calories from proteins (10-12%) and fats (min. 17%) and adequate amount of micro nutrients (vitamins and minerals).
Food Gap
First step of needs assessment is determination of the nutrient gap.
The other elements (semi-independent) are aligned around the Sectorial Capacity Assessments. These include elements like government policies (supportive or not of CBT), the markets and retailer networks, the financial services providers, security, capacity of other partners,
The need + the context (sectorial capacity assessment) + objectives + cost efficiency & effectiveness measures = transfer modality selection
Nutritional Value of the food the household is able to provide for themselves without resorting to negative coping strategies.
Needs Assessments determine the food gap in a given food insecurity context.

13. Food Security In-kind food Cash-Based Transfers
How to Meet the Food Gap
WFP Food Basket
In-kind food
Transfer Value
determined by the minimum
Nutritionally Balanced Food Basket available in the market
Cash-Based Transfers

14. Food Security
What is a Nutritionally Balanced Food Basket Available in the Market?
A basket made of food commodities available in the local market, preferred by the beneficiaries as per diet habits, nutritious enough to fill the identified food gap! THIS IS ALSO KNOWN AS … The “LOCAL DIET BASKET”

15. Food Security How to Calculate the Transfer Value
Once the local diet basket is defined in commodities and quantities, we apply the local market prices:
In-kind food
Food Basket
Food items and associated quantities calculated to fill the food gap (Kcal + macro + micro nutrient requirements)
Food gap:
Nutrient Value
Energy Kcal
Macronutrients
Micronutrients
Local market prices are the prices that the beneficiaries will pay for their commodities.
Cash-Based Transfers
Food Basket
Food items tailored on local diet.
Associated quantities calculated to fill the food gap (Kcal macro + micro nutrient)
Transfer Value
Food basket
(items & quantities) ×
Local market prices

16. Comparative Decision Making Processes
Sectorial Capacity Assessment Considerations
Cooperating Partners Capacity
Financial Services Capacity
IT and Communication Capacity
OPERATIONAL CAPACITY
Multi-sectorial Assessments Determine what can and can not be done …
Field Security Assessment
Local Market & Retail Sector Capacity
Government Policies

17. Transfer Modality Choice
Cost Efficiency and Effectiveness Considerations
Cost-Efficiency
Cost-Effectiveness
Measures the cost of Delivering the Programme
Measures the cost of achieving the objective

18. Key Considerations in Cash Based Transfers
Part III
Key Considerations in Cash Based Transfers

19. Relationship Spectrum
Partnerships
Working with non-traditional Partners
Financial Services Providers
Traders (not as typical providers of commodities)
(Third Party) Technology Providers
Other Government Ministries and Department
Humanitarians generally suspicious of business “for profit” motives. And only interested in engaging from a CSR prism. This approach is misguided.
Formal financial services bring into play KYC requires
Traders are traditionally used to supplying goods and services to humanitarian actors – the cash space requires that they do this to project beneficiaries
Technology actors tend to be invariably urban bringing fore spatial, literacy and other biases that cut out typical humanitarian recipients
Relationship Spectrum
TRANSACTIONAL
PARTNERSHIP
At one end of the spectrum are simple transactional partnerships for leveraging resources; at the other end are full-scale, complex multi-sector partnerships which aim to bring about system change. And of course there are many points in between, but for simplicity we have picked out a central point of “combining to innovate”.

20. … Partnership
Outcome of misalignment …

21. Markets Market functionality a key success determinant
Market based responses need markets
Market functionality a key success determinant
Market assessments prior to intervention key
Market monitoring during intervention essential
It is good practice to build on what the target population has … (markets created for humanitarian responses tend to collapse with the intervention)
Why do different market assessment arrive at different conclusions?

22. Financial Services Providers
Access to and interaction with FSPs
Financial inclusion – a large portion of the population remains outside the financial grid (KYCs, regular income, costs et al limit access)
Adopted financial services shouldn't be a burden to target population – clear point of payment and verification of recipient (right amount to the right person at the right time)
The aim is not “technology” but rather adoption of appropriate mechanism
Technology can limit risk of fraud
Technology can limit access to financial services

23. Delivery Mechanisms
Criteria for Assessment Cash Delivery Options
Project Objectives (including duration of assistance & transfer value)
Existing infrastructure
Set up costs
Security considerations
Controls & risk mitigation measures (automation)
Human resources requirements (#s & capability)
Speed for execution (fast or slow onset emergency?)
Acceptability by target & vulnerable groups
Scale
Flexibility – to amounts, frequency et al

24. Technology
Sample Considerations
Biometrics – e.g. use of finger prints can achieve deduplication, erase need for PIN numbers
Mobile Phones – use for mobile money; remote monitoring tool on project variables; accountability to affected population (AAP) – messaging – BCC, notification of “abuse”
SMART card – multiple wallet capability, data encryption, ability of offline transactions
IMS – e.g. SCOPE from WFP enable beneficiary and transfer management

25. Government Data protection – what information can be collected?
Legislation and political will
Data protection – what information can be collected?
Informed (beneficiary) consent

26. Working together
Coordination and collaboration
Cash Working Groups a good place to discuss cash issues
Cross sectorial linkages useful
Government linkages essential (both local and national)
Joint studies, programmes contribute to collective learning
Enables addressing competing narratives on key issues like transfer value and thresholds for changing transfer modality

27. Lessons Learnt
Critical Success Factors
Business engagement is not about CSR! It is about a social-business interaction that MUST make sense to all actors
Technology shouldn’t be adopted for the sake of technology – sometimes low-tech makes most sense
Government ownership and leadership key!
Coordination and collaboration among stakeholders is essential (CWGs)
Always ensure AAP – they have to be informed and involved

28. Q&A Session Charles Inwani
Programme Policy Adviser CBT & Social Protection, Regional Bureau of Johannesburg, South Africa
Learn more:
27th April 2017