This guidance note is part of a series of nine modules that seeks to provide support to humanitarian actors working on Cash Based Programming in Somalia Cash transfer programming can be set up through different designs with contextual specificities defining diverse approaches to targeting, control mechanisms, risk mitigation and risk management. This module aims at providing some key questions and possible answers to consider throughout the project lifecycle
Determining the project objectives
What do we want to achieve?
The needs assessment should provide an answer on what is needed and when by what sort of target group.
Key questions to considerWhat are the main needs of the target group and which type of intervention is needed? / ⧠Food
⧠NFI
⧠Shelter
⧠Livelihood inputs
⧠Access to water
⧠Access to health
⧠Access to education / List of items/ expenditure needs expressed by beneficiaries.
Should the objective of the cash transfer be only to increase purchasing power (voucher or unconditional cash transfer) or should it be away to achieve other objectives (conditional cash transfer, cash for work) / Cash can be used to increase the purchasing power of the target group.
In other contexts, cash has been used as an incentive for behaviour change; for example, to increase school attendance, participate in health program, to improve hygiene or knowledge of nutrition.In the Somali context, the conditional cash transfer is mainly articulated as CFW or cash voucher.…
What is the foreseen duration of intervention? / Duration of intervention;
⧠Less than 3 months
⧠3 to 6 months
⧠Above 6 months
How urgent is the intervention? / Inputs should reach beneficiarieswithin;
⧠2 weeks
⧠5 weeks
⧠More than 5 weeks
What are the specific needs of the targeted group; have the different needs of men and boys and women and girls been taken into consideration? / Can men and women be consulted separately?What knowledge exists regarding gender differences in experiencing and managing the crisis?
Understand how males (men, boys) and females (women, girls) are differently affected by the crisis?
Do men and women/boys and girls have different coping mechanisms?
What do women, consulted separately, say about their main issues and needs?
Selection of cash transfer programming
Key elements to consider in determining which type of cash intervention would be the most appropriate.
Conditional (eg of cash for work) / UnconditionalAdvantages / Disadvantages / Advantages / Disadvantages
Cash / -Double impact of the project (cash distribution + infrastructurerehabilitation).
-Beneficiaries have full flexibility as to how to use the cash.
-A degree of self- selection asthe better off are less likely to want to do wage labour. The cash for work approach may reduce diversion as beneficiaries who have worked will claim their wages / -The most vulnerable cannot participate in CFW activities. The CFW activities should also consider the potential involvement of beneficiaries in other activities such as household management activities for women or farming activities during specific times of the year.
-Who benefits from the CFW i.e. risk of specific groups benefiting more than others in the infrastructure(s) rehabilitated should be considered from a conflict sensitivity point of view. / -Very vulnerable beneficiaries can be included in the list of beneficiaries.
-Very fast process relying on efficiency of the local business community.
-Beneficiaries decide how to use the cash. / -The capacity of local Hawala (branch) could be limited.
-Risk on inflation is more important in this approach asthe NGO has no control or influence on suppliers (compared to a voucher system where the price can be revised on regular basis).
-Unconditional cash distribution can be very attractive for actors ofdiversion. Hence the, verification mechanisms should be more elaborate.
Voucher / -The choice for beneficiaries is limited to what is covered by the voucherwhich prioritises the items identified as most needed by the target population. This can reduce the risk of inappropriateuse of the inputs (i.e. Khat)
-Decrease potential conflict at household level regarding the use of the inputs provided. (no choice =no disagreement).
-NGO and suppliers work closely so review of price/availability/quality of items can be done regularly. / -The most vulnerable cannot participate in CFW activities. If the items provided by the voucher are notthose preferred by beneficiaries they might be sold ata low value. Hence, correct composition (type of items, quality of items, quantityper item) of the voucher is critical.
-Selection of suppliers and verification of quality of items to be distributed is time consuming and may delay the intervention. / -Very vulnerable beneficiaries can be included in the list of beneficiaries.
-NGO and suppliers work closely so review of price/availability/quality of items can be done regularly. / -Same as for conditional
Key questions to consider during the selection of the modality
- What shouldthe currency of payment be and how currency exchange would be accessible and monitored?
- What are other organizations doing and how can this support be coordinated and complemented in targeting the beneficiary group (eg. Cash transfer amount, duration, frequency of payment, sharing standard list of beneficiaries to avoid duplication, sharing geo referenced area of intervention (villages targeted, distribution sites, location infrastructures to be rehabilitated)?
- Set up the frequency of payment and explain why.The frequency of payment will impact on the use of the cash, the logistical burden of payment for the NGO, the manipulation of small notes, the level of taxation imposed on beneficiaries.Frequency of payment may also have an impact on risk management measures.
Complementary programming
A project can target different groups as per their needs and status through different modalities. Complementary programming tailors services per category of beneficiaries.
/ Combined programming / Possible reasons to justify specific modalities per group of beneficiaries.% In kind / -Geographical distribution of beneficiaries
-Capacity to work
-Gender restrictions to access goods
-Gender consideration in availability of cash for work activities, protection issues related to travel to/through specific locations.
-Cost of transport
-Level of risk of diversion
% Cash unconditional
% Cash conditional
% Cash for work
% Voucher
Complementary programmingarises through understanding the specific needs and constraints of each category of beneficiaries such as livelihoods, minorities status, displacement, social status (gender, clan, women headed household …) to provide the most adapted modalities for each group.
Gender is a key aspect to consider; one element in programming fairly for men and women is “women’s empowerment” through the inclusion or even prioritization of women in targeting and by increasing women’s participation in decision making.Women are often excluded from public decision making fora in Somali.
A gender analysisshould also consider;
-How men/boys and women/girls are differently affected by the crisis?Young men may be forcibly recruited into armed groups, drought can increase travelling distance for male camel herders and thus tension between male pastoralists competing for the same resources.Women/girls are frequent victims in Somalia of gender based violence as part of the conflict strategy, forced marriage, …
-How interventionsmight influence gender relations. For example, women are often targeted for cash distribution as they are considered to have a primary role in food security for the household.It is important to consider how male household heads perceive this,respectively with short and long term perspectives.
-How female targeted for cash grant control the decision making onexpenditure?
-How the localcultureperceives the gender prioritization?
-How local authorities consider women’srole in the decision making
-How men and womenface different protection issues related to different modalities of intervention ?Vulnerability to violence and taxation during travel between distribution sites and home; are women more exposed to taxation and violence after receiving the cash between the distribution centers and their homes;. How are women involved in cash distribution cope with their daily household tasks.
Key questions to consider during the design of the project / Outputs / RemarksSelection beneficiaries /
- What are the selection criteria forthe most vulnerable (unconditional cash transfer)?
- What are the selection criteria for the beneficiaries targeted by specific CCT (depending on the conditionality of the transfer (ie voucher for food security consideration).
- What are the selection criteria for the less vulnerable beneficiaries (cash for work for example)?
- What is the proportion of conditional and unconditional beneficiaries of the project?
⧠ Selection criteria for beneficiaries “Able to work”.
⧠Selection criteria for each modalities of delivery combined
⧠ % “vulnerable” & % “able to work” beneficiaries. / Average expenditure and prices of commodities may vary on a seasonal basis – this should be taken into account when deciding when to distribute the cash/vouchers but also when considering the duration of the intervention. Source: FSNAU.
Stopping cash for work intervention at the time of harvest for farmers should be thought carefully taking into consideration short term and long term impact.
How much to give and when to give it
Key questions to consider during the design of the project / OutputsValue of inputs needed/ amount of cash /
- Average households size of the targeted beneficiaries.
- Calculate average basic household expenses in the targeted area. The objective is to anticipate the specific needs (in termsof goods)of the targeted group. Source: FSNAU and field need assessment.
- Take into account the cost of assets/materials required to establish/restart a livelihood or productive activity. This may vary between recipients and locations.
- Include the cost of materials/assets (e.g., start-up assets, rehabilitating damaged assets, such as clearing agricultural land, seed, livestock, fencing and labour) that people will need to restart different occupations.
- Include the possible cost of transport for beneficiaries between their places of living and the location of collection of item/cash.
⧠ List of items foreseen to be needed x their specific value = Value of the cash transfer.
⧠ List of traders able to supply and distribute items as per expected standards.
⧠Foreseen cost of transport for beneficiaries.
- Check module 2 when cash is appropriate, the chapter on seasonality provides an indication on how to assess when to distribute and when to stop the project.
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