Attachments
By MEB Review and Gap Analysis Task Force – SNBS, CWG Chair, FSC, FSNAU, REACH, FAO and WFP
1. Background and Introduction
Somalia is characterized by a complex political, security, and development environment. Its recent history has been marked by conflict, insecurity, political instability, and natural and economic shocks. These protracted crises are factors that contributed to both chronic and acute hunger, malnutrition, and displacement, with recent estimates indicating that about 54% of Somalia’s population lives below the poverty line. Furthermore, poverty, the impact of floods, drought, conflict, and epidemic outbreaks have contributed to the increased vulnerability of the Somali population. As the vulnerabilities increases the humanitarian community and stakeholders acknowledged the need to develop an efficient respond to address multiple sectoral needs of the vulnerable population to better meet their essential needs (food and non-food) for survival and building resilience.
On this note the Cash Working Group (CWG) established based on 2022 transfer values (TV) for MultiPurpose Cash (MPC) based on the multisectoral needs. However, to ensure accuracy these TV was review was recommended for in-depth analysis using 3 years price trend to aligned in the changing dynamic of the market environment. To strengthen the analysis the Integrated Household Budget Survey (IHBS) of 2022 was used for reference in gap analysis and TV computation.
The Minimum Expenditure Basket (MEB) is defined as what a household requires to meet basic needs—on a regular or seasonal basis—and its average cost. Complementing the MEB cost with tailored estimates of the economic capacity gap of the most vulnerable households is crucial for determining accurate and effective transfer values for cash programs in Somalia. This customized approach ensures that the diverse needs across different regions are adequately addressed, ultimately improving the efficiency and impact of cash programs.
This analysis utilizes the 2022 IHBS conducted by the Somali National Bureau of Statistics (SNBS) as indicated above, to obtain in-depth insights into household economic capacity, expenditure patterns, and food security status. Additionally, the IHBS includes data from various population strata—urban, rural, nomadic, and internally displaced populations across regions—offering a comprehensive understanding of household economic capacity in each region.
While assessing the economic capacity of the most vulnerable populations in each region against a defined regional threshold, gaps between current economic capacity and the minimum required standards can be identified. These gaps are then compared with the regional MEB to determine the appropriate transfer values for cash programs.
This approach takes into account the difference in living costs and standards across Somalia, ensuring that humanitarian interventions are accurately tailored for high impact.