CASH BASED PROGRAMMING IN SOMALIA
Module 8 : Focus on unconditional cash transfer
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. These guidance notes are meant to provide an overview of the
topics while pointing to materials with more in-depth explanations. This module aims at providing some key
questions and possible answers to consider throughout the project life cycle.
Appropriateness
Refer to module on “planning and designing cash intervention” and “implementation cash intervention” for more
details.
Unconditional cash transfer characteristics:

Faster response. Cash transfer requires less steps and avoids the
lengthy step of procurement through suppliers

Beneficiaries are able to decide how to use the cash.

Increase monitoring on market ability to respond.
Unconditional cash transfer is the simplest cash modality. It is in fact the most risky as there is little to no control on
what beneficiaries spend the cash on, how markets coop with the demand. In order for unconditional cash transfer
modalities to achieve their objectives, solid monitoring methods should be in place to measure the impact of the
project and to take immediate action should the modalities not allow the project to reach its anticipated objectives.
Implementation
The implementation of the UCT should refer to “Module 2 When is cash appropriate” and “Module 9 Risk
management”.
Due to high risk of diversion, for this methodology, the IO should focus on very detailed selection criteria for the
beneficiaries with extensive verification of the list and detailed recording on the list of beneficiaries.
Key questions to consider
Structured answers
More than other modalities, the duration of cash transfer
project should be limited in time as the situation of the
⧠ Keep the duration of the project short
population may be subject to change (evolution of vulnerability
enough.
status, different places of living not targeted by the project)
〖……….〗 months.
For example, in Mogadishu, an NGO was supporting IDPs living
in one camp. A few months after the start of the project the
evaluation team was barely able to identify beneficiaries as lots
of them had moved on the outskirt of the city to reduce the cost
of rent and to avoid taxation from gatekeepers. The right people
were still receiving the cash but as the IO was not able to find the
beneficiaries, the level of monitoring control were not sufficient.
The UCT provide a modality of implementation where the
beneficiaries are not necessarily met on regular basis if the
monitoring system is not strong enough. While voucher
approach and cash for work modalities enforce more contacts
between the IO and the beneficiaries.
As the level of risk is high with unconditional cash transfer, the
level of effort on monitoring is foreseen to be more important.
Money can be sent using E transfer companies. The benefits of
such a modality is that beneficiaries are identified at the
beginning of the project can receive their cash directly by phone
over a long period without contact with agency staff High
NB: CVMG suggest for emergency UCT a period
of 3 months before retargeting/re assessing.
⧠ Specific objectives of the project (support to
xxx IDPs camp for example) might be amended
if the situation of beneficiaries changes
(relocation for example).
⧠ Maintain regular contact with beneficiaries
to understand their situation and the impact of
the cash transfer. This will enable to better
appreciate the evolution of the target group
but also to amend the project when needed.
Frequency of monitoring: 〖……….〗 months.
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CASH BASED PROGRAMMING IN SOMALIA
Module 8 : Focus on unconditional cash transfer
frequency monitoring is then needed.
⧠ Market follow up. ……….〗 weeks.
⧠ Level of sophistication and triangulation
must be high.
The competition between potential beneficiaries to be included
in the project could be high and taxation on beneficiaries is may
take place more easily with this approach.
NB: As the use of phone is key for
beneficiaries, some phone interviews through
a call centre could be considered (Low cost).
⧠ Monitor regularly acceptance level by nonbeneficiaries and local authorities.
⧠ Monitor regularly possible approach to
taxation.
Delivering cash
E-transfer companies
Location
Name of the
company
Name of the E transfer service
url
Nationlink
E-Maal
http://nationlinktelecom.com/nationlink/index.php/emaal/cash-in/
Hormuud
EVC Plus is an upgraded version of Evoucher
http://www.hortel.net/home.php?readmore=52
Mogadishu based
Puntland
Golis
http://golistelecom.com/
Galkayo based
Sahal
Sahal Express
http://www.sahalexpress.net/
Hargeisa based
Telesom
ZAAD Service
http://www.telesom.net/index.php/services/vas-services
Use of E-transfer companies
Detailed understanding of the potential of E transfer companies
As long as phone companies
Technology can enable to know a lot – and most probably be too much – on
are involved in cash transfer,
beneficiary’s behaviour. The IO and the phone operator should define clear
the IO can access lots of
limits on which information can be accessed. A limit on monitoring and accessing
information.
certain level of information should also be set up.
 The phone enables to geo reference the location of the beneficiaries.
 The use of account can enable to measure how much money is
remaining on the account.
 The list of money transfers could be tracked per client account. While it
might not be possible to access this information or to always know the
reason for the payment, the association of a phone number or company
registered in the same E transfer system can allow understanding how
much is spend per category or shop per month.
⧠ Define the list of information requested to the E transfer company and seek
signed agreements by beneficiaries before inclusion in the beneficiaries list.
What is the capacity of the E
The pre financing approach reduces the level of risk for the IO as payment to the
E transfer company would occur only when specific deliverables have been
transfer company to pre
reached (support documents produced, field verification done, …). However, as
finance the payment?
the E transfer company would take all the risk then the fees for the services are
foreseen to increase. Each IO should negotiate with the E transfer the conditions
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CASH BASED PROGRAMMING IN SOMALIA
Module 8 : Focus on unconditional cash transfer
of pre financing and final payment.
What is the maximum
amount per account on the E
transfer company?
What is the cost of transfer
per category of transfer
(between
companies,
between different register
users, …)?
〖……….〗 USD.
NB: Before some E transfer companies had a maximum capacity per account
which was too low for households saving some of the cash received. Amount
above this limit were rejected. This limit has now been increased.
〖…….〗 % of amount.
NB: Cost of transfer is usually very low and can be free between registered client
of the same E transfer company.
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