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DR Congo

DRC Humanitarian Crisis: Why Cash is Best

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Violence and instability, combined with a severe lack of basic services, have affected the population of the Democratic Republic of Congo (DRC) for decades. The country’s eastern provinces have become a perpetually insecure and hostile environment, with low intensity but increasing conflict. As a result, more than 25 million people – a quarter of the population – are estimated to need emergency assistance to survive in 2024, with 40 per cent of the population facing severe levels of acute food insecurity (IPC 3 or higher). The DRC is one of the largest internal displacement crises in the world, with an estimated 7 million people displaced, mainly in the east of the country.

In 2024, eastern DRC, particularly North Kivu, experienced unprecedented levels of displacement due to a surge in violent conflict. The number of displaced people has almost tripled since August 2023, reaching over 1.6 million, with the majority being women and children (75 per cent). In Goma for example, the number of displaced households in 2024 is 70 per cent higher than in 2023.

Although the humanitarian situation has clearly deteriorated, the DRC remains one of the most neglected humanitarian crises today, with a lack of political attention and chronic funding shortfalls. In 2024 thus far, only 35 per cent of the humanitarian response plan has been funded.

The DRC is emblematic of the complexity and protracted nature of crises where interconnected challenges persist. Despite nearly 30 years of humanitarian assistance, humanitarian and development actors have struggled to make significant and lasting improvements in the lives of affected populations. According to the Food Security Cluster, depending on the type of intervention, only 40 to 70 per cent of every 100 USD invested in humanitarian aid in the DRC reaches those in need, which is significantly lower than the baseline for other countries. In the face of escalating challenges - such as climate-related shocks like flooding, persistent insecurity, and weak government capacity to deliver services - a new, more effective and efficient intervention model is urgently needed in the DRC.

Cash is more cost-efficient than other modalities

Cash assistance is a flexible and cost-efficient modality that provides dignified solutions to vulnerable households. A 2021 value for money study of the SAFER program, the largest rapid response mechanism for cash transfers in the DRC, found that when comparing modalities, cash transfers are four times more efficient and about 86 per cent cheaper than in-kind assistance. (1) This efficiency means that the same amount of funds can support a significantly larger number of vulnerable people when delivered as cash transfers compared to inkind assistance.

Current developments led to a situation in Goma where markets are flooded with in-kind donations being sold at a fraction of their cost, indicating how desperate people are to get cash. When goods are resold at prices lower than their original purchase cost, there is a loss of value, further reducing cost efficiency and coverage of in-kind aid.

(1) Value for money study, SAFER Consortium, Key Aid Consulting, Dec 2021.