Cash Introduction Federal Department of Foreign Affairs FDFA Swiss Agency for Development and Cooperation SDC : Eidgenössisches Departement für auswärtige Angelegenheiten EDA Direktion für Entwicklung und Zusammenarbeit DEZA DEZA-HH – André Dürr

Definition Cash Transfer Programming (CTP) = Cash Transfers = cash- based assistance = Cash & Voucher CTP is a transfer modality, not a project itself 2Cash Introduction| André Dürr

Exercise Cash for Rent (cash paid to beneficiaries so that they can cover or partially cover rental expenses)  Unconditional / conditional?  Restricted / unrestricted? Cash for Hosting (cash paid people who host refugee / IDP communities as an incentive and to cover additional expenses)  Unconditional / conditional?  Restricted / unrestricted? Voucher for work (food voucher given to beneficiaries who provide their labour to rehabilitate a school)  Unconditional / conditional?  Restricted / unrestricted? 3Cash Introduction| André Dürr

Advantages & Preconditions Advantages of CTP as compared to in-kind assistance: Allows recipients to address their own needs as they see fit (they know best!)  more dignified and usually preferred by beneficiaries Same transfer can address multiple needs (multi-sector) Links with recovery, resilience, poverty reduction Often more cost efficient than in-kind (but not always) Market-based: support to local trade and economic recovery Preconditions for CTP: Market: availability of required goods or services in the local market; accessibility for beneficiaries Acceptable level of inflation. Why? Reliable transfer mechanism. Why? Buy-in from local authorities Security? 4Cash Introduction| André Dürr

Modality selection What modality (in-kind, cash, voucher) is the most suitable depends on the local context!!! To be considered:  Are preconditions met?  Cost effectiveness (cost to reach outcomes)  Cost efficiency (cost to reach outputs)  Beneficiary preference, culture appropriateness  Buy-in from local authorities  Gender and protection considerations 5Cash Introduction| André Dürr