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Somalia

Somalia Joint Market Monitoring Initiative (JMMI) (March 2024)

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INTRODUCTION

The Joint Market Monitoring Initiative (JMMI) was launched by the Somali Cash Working Group (CWG) in June 2020. Its purpose is to enhance cash-based interventions in Somalia and improve understanding of market dynamics. The initiative is led by REACH in collaboration with the Somalia CWG. The JMMI monitors Non-Food Items (NFIs) to fill information gaps, contributing to supply chain and price monitoring of essential items in the Minimum Expenditure Basket (MEB). It is a model that REACH has supported setting up and coordinates in several countries.

The Somalia CWG members collect data voluntarily from their respective areas of operation. The geographical coverage of the exercise varies each quarter depending on the ability of CWG members to consistently collect data. The data is collected through key informant interviews (KIIs), with a minimum of three vendors being interviewed for each assessed commodity for each district assessed. Findings are presented at the district level and should be considered indicative rather than representative. Hence, the narrative only summarises general trends and particular outliers.

The assessments are conducted quarterly in key urban areas across Somalia. The Current 16th round of JMMI data collection took place between February 18th and March 20th, 2024, covering 23 districts, more than double of the previous coverage. As per the Humanitarian Needs and Response Plan for Somalia 2024, 3.8 million people are in need of humanitarian assistance.

KEY FINDINGS

• The median cost of the General Non-Food Items (GNFI) basket experienced a 27% surge from November 2023 to March 2024. This increase can be attributed, at least in part, to two key factors: expanded coverage and a rise in diesel prices in certain assessed locations. This rise in diesel prices has subsequently led to escalated transportation costs for goods, potentially contributing to the overall rise in the GNFI basket’s median cost during this period.

• The overall cost of Hygiene and Stationery remained stable.
However, notable regional variations were observed, influenced by factors such as transport costs, road conditions, and seasonal barriers.

• Vendors faced substantial challenges due to inadequate infrastructure, particularly regarding roads, which affected the transportation of goods. A high percentage of these issues were attributed to poor road quality and closure of roads by authorities. Additionally, financial obstacles, such as limited cash flow and low purchasing power, further impeded efficient business operations due to the financial