CASH BASED PROGRAMMING IN SOMALIA
Module 3 : Planning and designing cash interventions
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 consider
⧠ Food
⧠ NFI
List of items/ expenditure
⧠ Shelter
What are the main needs of the target group and
needs
expressed
by
⧠ Livelihood inputs
which type of intervention is needed?
beneficiaries.
⧠ Access to water
⧠ Access to health
⧠ Access to education
Cash can be used to increase the purchasing power of
Should the objective of the cash transfer be only the target group.
to increase purchasing power (voucher or In other contexts, cash has been used as an incentive for
unconditional cash transfer) or should it be a way behaviour change; for example, to increase school
to achieve other objectives (conditional cash attendance, participate in health program, to improve
hygiene or knowledge of nutrition. In the Somali
transfer, cash for work)
context, the conditional cash transfer is mainly
articulated as CFW or cash voucher.…
Duration of intervention;
⧠ Less than 3 months
What is the foreseen duration of intervention?
⧠ 3 to 6 months
⧠ Above 6 months
Inputs should reach beneficiaries within;
⧠ 2 weeks
How urgent is the intervention?
⧠ 5 weeks
⧠ More than 5 weeks
Can men and women be consulted separately? What
knowledge exists regarding gender differences in
experiencing and managing the crisis?
What are the specific needs of the targeted
group; have the different needs of men and boys Understand how males (men, boys) and females
and women and girls been taken into (women, girls) are differently affected by the crisis?
consideration?
Do men and women/boys and girls have different
coping mechanisms?
What do women, consulted separately, say about their
main issues and needs?
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CASH BASED PROGRAMMING IN SOMALIA
Module 3 : Planning and designing cash interventions
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)
ADVANTAGES
DISADVANTAGES
ADVANTAGES
DISADVANTAGES
- Double impact of the project
(cash
distribution
+
infrastructure rehabilitation).
- 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.
- Very
vulnerable
beneficiaries can be
included in the list of
beneficiaries.
- The capacity of local
Hawala (branch) could be
limited.
- Beneficiaries
have
full
flexibility as to how to use the
cash.
CASH
UNCONDITIONAL
- A degree of self- selection as
the 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
- Very fast process relying
on efficiency of the local
business community.
- Beneficiaries decide how
to use the cash.
- 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.
VOUCHER
A COMBINATION OF MODALITIES
CAN BE CONSIDERED
- The choice for beneficiaries is
limited to what is covered by
the voucher which prioritises
the items identified as most
needed by the target
population. This can reduce
the risk of inappropriate use
of the inputs (i.e. Khat)
- Decrease potential conflict at
household level regarding the
use of the inputs provided.
(no
choice
=
no
disagreement).
- The most vulnerable cannot
participate in CFW activities. If
the items provided by the
voucher are not those
preferred by beneficiaries they
might be sold at a low value.
Hence, correct composition
(type of items, quality of items,
quantity per item) of the
voucher is critical.
- Very
vulnerable
beneficiaries can be
included in the list of
beneficiaries.
- Risk on inflation is more
important
in
this
approach as the 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 of
diversion. Hence the,
verification mechanisms
should
be
more
elaborate.
- Same as for conditional
- NGO and suppliers work
closely so review of
price/availability/quality
of items can be done
regularly.
- Selection of suppliers and
verification of quality of items
to be distributed is time
consuming and may delay the
intervention.
- NGO and suppliers work
closely
so
review
of
price/availability/quality of
items can be done regularly.
Key questions to consider during the selection of the modality
1. What should the currency of payment be and how currency exchange would be accessible and
monitored?
2.
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)?
3.
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.
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CASH BASED PROGRAMMING IN SOMALIA
Module 3 : Planning and designing cash interventions
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
% In kind
% Cash unconditional
% Cash conditional
% Cash for work
% Voucher
Possible reasons to justify specific modalities per group of
beneficiaries.
-
-
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
Complementary programming arises 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 analysis should 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 interventions might 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 on expenditure?
-
How the local culture perceives the gender prioritization?
-
How local authorities consider women’s role in the decision making
-
How men and women face 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.
Gender definition: The term "gender" refers to
the socially-constructed differences between men
and women, as distinct from "sex", which refers to
their biological differences… / … Gender roles
demarcate responsibilities between men and
women in
 Social and economic activities
 Access to resources
 Decision making authority
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CASH BASED PROGRAMMING IN SOMALIA
Module 3 : Planning and designing cash interventions
Key questions to consider during the
design of the project
1. What are the selection criteria
for the most vulnerable
(unconditional cash transfer)?
Selection
beneficiaries
2. 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).
3. What are the selection criteria
for the less vulnerable
beneficiaries (cash for work for
example)?
Outputs
Remarks
⧠ Most vulnerable beneficiaries
selection criteria should be
compared to context analysis
documents to better understand
exclusion factor.
⧠
Selection
criteria
beneficiaries “Able to work”.
for
⧠ 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.
4. What is the proportion of
conditional and unconditional
beneficiaries of the project?
How much to give and when to give it
Key questions to consider during the design of the project
Value of inputs
needed/ amount
of cash
Outputs
1. Average households size of the targeted beneficiaries.
⧠ Average household size.
2. Calculate average basic household expenses in the targeted
area. The objective is to anticipate the specific needs (in terms
of goods) of the targeted group. Source: FSNAU and field need
assessment.
⧠ List of items foreseen to be
needed x their specific value =
Value of the cash transfer.
3. Take into account the cost of assets/materials required to
establish/restart a livelihood or productive activity. This may
vary between recipients and locations.
4. 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.
⧠ List of traders able to supply
and distribute items as per
expected standards.
⧠ Foreseen cost of transport for
beneficiaries.
5. Include the possible cost of transport for beneficiaries
between their places of living and the location of collection of
item/cash.

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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