Somalia Shelter Cluster Cash Response Overview
Cash-based interventions have been successfully utilized by humanitarian organizations in Somalia since 2003, with Somalia Shelter Cluster leading the way in delivering shelter and NFI assistance through cash mechanisms. The rationale behind cash responses in Somalia includes addressing challenges like insecurity, poor road infrastructure, and promoting local economies. Despite facing challenges such as market information gaps and protection concerns, initiatives like Joint Market Monitoring have been instrumental in informing cluster programming and cash responses.
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SOMALIA SHELTER CLUSTER CASH RESPONSE Shelter Cluster Somalia ShelterCluster.org Coordinating Humanitarian Shelter 1
INTRODUCTION Cash-based interventions have been used by humanitarian organizations in Somalia since 2003. Different mechanisms are in use: voucher, Mobile cash, electronic cash, and cash-in-hand. Somalia Shelter Cluster has been sharing its cash response data with Somalia CWG, which coordinates both sectorial and multi-purpose cash response. Since 2018, the cluster has committed to delivering more than 50% of shelter/NFI assistance through cash using the mantra Why not cash? In 2020, Somalia Shelter Cluster delivered 25% of the assistance through cash. This was the 2nd highest among all the clusters active in Somalia Shelter Cluster Somalia ShelterCluster.org Coordinating Humanitarian Shelter 2
RATIONALLE FOR CASH RESPONSE IN SOMALIA There is high insecurity and poor roads infrastructure in Somalia. This makes transportation of shelter and NFI kits very difficult Packaging items with organization logos is also a security risk shelter and NFI kits are bulky and expensive to transport by air PDMs have shown cash to be preferred by beneficiaries. Cash assistance promotes local economy In-kind kits limit beneficiary choices Some items in the standard kit lasts much longer than others. It makes no sense to distribute again the same kit as is the case in protracted displacement. Shelter/NFI markets are functional Mobile money works well in Somalia Shelter Cluster Somalia ShelterCluster.org Coordinating Humanitarian Shelter 3
CHALLANGES IN CASH RESPONSE IN SOMALIA Market Information Gap Lack of capacity within local organizations Inability of markets to meet demands when there is a spike in demand Protection concerns Need for quality assurance in shelter construction Shelter Cluster Somalia ShelterCluster.org Coordinating Humanitarian Shelter 4
SOMALIA SHELTER CLUSTER CASH INITIATIVES JOINT MARKET MONITORING (JMM) An initiative of REACH, Shelter, WASH, and Education Clusters Provides regular and updated monitoring information of a broad range of non-food items (NFIs) markets functionality Informs cluster programming and cash responses Complements existing supply chain and price monitoring of the main minimum expenditure basket (MEB) items Data collection and analysis done quarterly JMM Survey confirmed partners rely on JMM data Shelter Cluster Somalia ShelterCluster.org Coordinating Humanitarian Shelter 5
SOMALIA SHELTER CLUSTER CASH INITIATIVES NFI & SHELTER GUIDELINES Clearly mentions the modalities, each with the associated risks and mitigation measures PDM/PCM Separate tools designed for both in-kind and cash based responses Evaluates the appropriateness of each modality Seeks to identify the risks involved with each modality (Access, conflict in the HH, etc.) Evaluates the beneficiary preferences (modality) Cluster to produce a consolidated report within a month with learnings Shelter Cluster Somalia ShelterCluster.org Coordinating Humanitarian Shelter 6
