10 March 2015 Combined food and cash pilot in Ethiopia

WFP’s policy: from food aid to food assistance  transfer modalities: food, cash or vouchers  combination UNHCR-WFP Global Memorandum of Understanding (2011)  reference to cash & voucher as an alternative assistance tool  Global UNHCR-WFP Joint Plan of Action for cash & voucher 2011 Framework for cash and vouchers

Joint UNHCR/WFP Impact Evaluation in 2011 and Joint Assessment Mission in 2012  Recommendation to pilot cash and/or voucher Cash & voucher pilot included in WFP’s Refugee PRRO Ethiopia specific UNHCR/WFP Joint Plan of Action on Cash & Voucher (2012) with support from Regional Bureaux Gov. of Ethiopia Cash First Principle policy 2012  moving to cash (efficient resource utilization and strengthen markets) Towards cash and vouchers in Ethiopia

Tri-partite negotiations between UNHCR, WFP and ARRA (Administration for Refugee and Returnee Affairs in Ethiopia) Market assessments led by WFP market experts/VAM Beneficiary consultations and sensitization in selected camps Findings/results: Trade, selling and bartering of food is common Food sold at poor terms of trade by refugees to buy preferred food commodities, non-food items etc. Government and refugee preference for cautious approach  Agreement to pilot combined cash and food assistance in five selected refugee camps, targeting app 54,000 beneficiaries Decision making process

Combined food and cash modality OLD FOOD BASKETNEW FOOD ASSISTANCE BASKET Cereal 16kgCereal 10kg Pulses 1.5 kg Supercereal (CSB+) 1.5 kg Vegetable oil 0.9 kg Sugar 450g Salt 150g + ETB 100 (USD 5)

Enable refugees to buy their preferred food Improve the dietary diversity and food security situation of refugees Give refugees choice and flexibility  improved dignity Improved negotiation power at the market Reduce the selling of food assistance Objectives

Undesired use of cash Negative household dynamics Tensions with host community Mitigation measures: Risk and mitigation analysis by stakeholders prior to intervention Establishment of Complaint and Feedback Mechanism at cash distribution site Ongoing sensitization of beneficiaries Intensive monitoring Protection risks and concerns

High level of satisfaction among refugees across all five camps  Improved dignity, choice and flexibility  Improved negotiating power with traders Reduced household tensions due to reduced economic hardship Strengthened relationship with host community because of increased trade Cash used for firewood  women less exposed and fewer conflicts with host community Fresh food cooks faster  women save time Improved distribution sites in all cash camps (shade, benches, latrines and water)  A recent protection assessment mission did not identify any new protection risks related to the introduction of cash but instead, identified positive protection outcomes related to safety, dignity, integrity, empowerment, and social cohesion across camps. Protection benefits

Poor understanding of cash intervention by partners (and refugees)  cash diverted from food to other needs Low Food Consumption Score and Dietary Diversity Score from recent representative survey Complaint and Feedback Mechanism not properly functioning Expansion of program  different thinking than the government Implementation challenges

Way forward Pilot ending this month  moving into new phase External evaluation (including representative survey in four camps) Upcoming negotiations with ARRA and UNHCR about expansion and modality

World Food Programme 10 March 2015