SOUTH SUDAN JUBA COORDINATION – MEETING MINUTES WORKING GROUP: DATE: LOCATION: ATTENDEES: Cash Transfer and Markets Working Group 28 October 2015 Main Conference Room, UNOCHA See attached mailing list 1. Presentation on Market dynamics by WFP-VAM 2. Discussion on how the Economy is affecting the CBT implementation: AGENDA: Transfer Values, Best Practice 3. AOB 1. Markets situation - Presentation by VAM The current economic situation is characterised by increase in food prices in all states which are higher than the 5 year average. In Juba prices are twice as high as last year and this trend has been observed for all other cereals and other food items. Highest market dependency is witnessed in the greater Bhar el Ghazal, and the Equatoria’s, this results in households being more vulnerable to food price shocks. These are also the areas which have households that have a higher expenditure on food as a proportion of all the household expenditure. The 2015 economic situation has negatively impacted the traders more than 2014, the scarcity of hard currency has been one of the main factors. High market price volatility has been found in markets in Aweil, Kuajok, Wau for the cereal market. The volatility has a high impact on purchasing power of the households due to the unpredictability of the food prices on the market. Declining of the household purchasing power based on wage rates has been observed. The casual wage rates have not been rising at the same rate as the inflation. Action point Market situation presentation attached as well as the WFP market assessment Feb 2015 report. 2. Market situation impact on programming How are prices being affected in the county locations – Normally the terminal markets in the states are the supply markets to the county markets hence food prices tend to be lower in state markets. In places were own production plays a major part the prices of food commodities were observed to be lower. Communities with high food production will have less dependency on the food markets e.g. EES and WES. During harvest market dependency should be around 30% but this year (2015) it’s about 50% Urban programming: o WFP has no urban programming o Impact of economy on the Juba population has seen higher malnutrition rates than in other surrounding rural areas o More assessment needs to be undertaken to understand better the impact of the current situation on urban households. LWF operational in DUK and Twic East – the spike in the parallel market rate in Juba resulted in the Financial Service Provider (FSP) requesting for payment in USD this resulted in their withdrawal of services. FAO voucher programme prices negotiated in March and implementation in June. This lag time had an impact on the purchasing power of households as well as payments to suppliers. Of recent traders have been requesting to be paid in USD. http://foodsecuritycluster.net/operations/south-sudan SOUTH SUDAN JUBA COORDINATION – MEETING MINUTES One of the observation is the impact of the economic situation on the staffing salaries SSP Vs USD especially on casual labourers. ACTED facing this situation, not just in CBT transfer but inkind transfers as well. Monthly price monitoring being used to formulate a monthly transfer, investment in M&E to be able to adjust transfers. This implies at the planning phase agencies undertaking CBT have to build into the transfer a factor or multiplier to allow for the adjustments. Action point Share the template for the updates and members to share their market reports for uploading on the FSL working group site. ( http://foodsecuritycluster.net/country/docfiles/1031/376) Share research on the impact of food aid on the markets 3. AOB The next meeting date will be advised at a later date. http://foodsecuritycluster.net/operations/south-sudan