Enhancing Food Security through Cash-Based Transfers in Mozambique

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Mozambique
Food Security Cluster After Action
Review
27 April 2017
Cash Transfers Programming – WFP Food
Assistance Approach
Maputo
 
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
Objectives of the Presentation
Cash Based Transfers
 
I.
Overview of 
Cash Based Transfers
Programming
II.
Food Security 
Overview & the 
WFP Food
Assistance Toolkit
III.
Key 
Considerations
 and 
Lessons Learnt
in CBT
Presentation Outline
WFP Cash-Based Transfers
Part I
Overview of Cash Based Transfers
Programming
Definitions
Cash Based Transfers
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.
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“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
C&V = cash & vouchers
CBI = Cash-Based
Interventions
MBI = Market Based
Interventions
CTP = Cash Transfer
Programming
Types of CBT Programmes
Cash Based Transfers Programming
 
 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
Why the Transition from Food Aid to Food Assistance?
Cash Based Assistance
Part II
Food Security Overview & The WFP Food
Assistance Toolkit 
 Response Decisions
What is Food Security?
Food Assistance
1950s 
… 60s –
food security
was equated
with self
sufficiency in
major staples
1974 
… Food
Security is
defined as
Access to
Sufficient food
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.
Pillars of Food Security
Food Security
WFP’s Food Assistance Tool-Kit
Food Security
 
The food gap is the difference between nutritional needs
and what targeted beneficiaries are able to provide for
themselves without adopting distressed strategies.
The Food (Nutrient) Gap
Food Security
F
o
o
d
G
a
p
 
Needs Assessments determine
the food gap in a given food
insecurity context.
How to Meet the Food Gap
Food Security
 
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”
What is a Nutritionally Balanced Food Basket Available in
the Market?
Food Security
 
Once the local diet basket is defined in commodities and
quantities, we apply the local market prices:
How to Calculate the Transfer Value
Food Security
 
I
n
-
k
i
n
d
f
o
o
d
F
o
o
d
 
B
a
s
k
e
t
Food items and associated
quantities calculated to fill
the food gap  (Kcal + macro
+ micro nutrient
requirements)
 
C
a
s
h
-
B
a
s
e
d
T
r
a
n
s
f
e
r
s
F
o
o
d
 
B
a
s
k
e
t
Food items tailored on
local diet.
Associated quantities
calculated to fill the food
gap (Kcal macro + micro
nutrient)
T
r
a
n
s
f
e
r
 
V
a
l
u
e
Food basket
(items & quantities)
×
Local market prices
Sectorial Capacity Assessment Considerations
Comparative Decision Making
Processes
Cooperating
Partners
Capacity
Local Market &
Retail Sector
Capacity
Financial
Services
Capacity
Field Security
Assessment
OPERATIONAL
CAPACITY
Government
Policies
Cost Efficiency and Effectiveness Considerations
Transfer Modality Choice
Cost-Efficiency
Cost-Effectiveness
 
Measures the cost of
Delivering the Programme
 
Measures the cost of
achieving the objective
Part III
Key Considerations in Cash Based
Transfers
 
Financial Services Providers
Traders (not as typical providers of commodities)
(Third Party) Technology Providers
Other Government Ministries and Department
 
Working with non-traditional Partners
Partnerships
 
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”.
 
TRANSACTIONAL
 
PARTNERSHIP
 
Relationship Spectrum
Outcome of misalignment 
 Partnership
 
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?
Market based responses need markets
Markets
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
Access to and interaction with FSPs
Financial Services Providers
 
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
Criteria for Assessment Cash Delivery Options
Delivery Mechanisms
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
Sample Considerations
Technology
Data protection 
 what information can be
collected?
Informed (beneficiary) consent
Legislation and political will
Government
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
Coordination and collaboration
Working together
 
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
Critical Success Factors
Lessons Learnt
27
th
 April 2017
Q&A Session
Learn more:
http://www.wfp.org/cash-and-vouchers
http://go.wfp.org/web/cash-and-vouchers/home
Charles Inwani
Programme Policy Adviser CBT & Social
Protection, Regional Bureau of
Johannesburg, South Africa
charles.inwani@wfp.org
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Explore the use of cash-based transfers in humanitarian assistance, focusing on addressing food security challenges in Mozambique. The presentation covers the objectives, definitions, programming types, and the transition from food aid to food assistance through cash interventions. Discover key considerations, lessons learned, and practical options for wider adoption of cash-based transfers.


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  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

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

  4. 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. 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. IFRC and ICRC Guidelines for cash transfer programming C&V = cash & vouchers CBI = Cash-Based Interventions MBI = Market Based Interventions CTP = Cash Transfer Programming 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

  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. Food Assistance What is Food Security? an evolving concept ... 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. 1950s 60s food security was equated with self sufficiency in major staples 1974 Food Security is defined as Access to Sufficient food

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

  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. Food Gap Nutritional household themselves negative coping strategies. Value is without of the to food the for to able provide resorting Needs Assessments determine the food gap in a given food insecurity context.

  13. Food Security How to Meet the Food Gap In-kind food WFP Food Basket 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: Food Basket Food items and associated quantities calculated to fill the food gap (Kcal + macro + micro nutrient requirements) In-kind Food gap: Nutrient Value -Energy Kcal -Macronutrients - Micronutrients food Food Basket Transfer Value Food items tailored on local diet. Associated quantities calculated to fill the food gap (Kcal macro + micro nutrient) Cash-Based Food basket (items & quantities) Local market prices Transfers

  16. Comparative Decision Making Processes Sectorial Capacity Assessment Considerations Cooperating Partners Capacity Financial Services Capacity IT and Communication Capacity OPERATIONAL CAPACITY Local Market & Retail Sector Capacity Field Security Assessment Government Policies

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

  18. Part III Key Considerations in Cash Based Transfers

  19. 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 Relationship Spectrum PARTNERSHIP TRANSACTIONAL 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 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 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 charles.inwani@wfp.org World Food Programme World Food Programme Learn more: http://www.wfp.org/cash-and-vouchers http://go.wfp.org/web/cash-and-vouchers/home 27th April 2017

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