Somalia - Market Feasibility Study: Galkacyo (August 2020)

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The number of internally displaced people (IDP) in Somalia has been increasing for the last several years. Currently, 2.6 million IDPs live in 2,000 sites across Somalia, the majority of whom were found to be in need of humanitarian assistance and protection.

For over a decade, the town has been divided into four quarters: Isaac, Garsoor, Wadajir, and Horumar. The northern part of town is under control of the Puntland state while southern Galkacyo is administered by the Galmudug state. In this assessment neither households (HHs) or markets are reported disaggregated between Galkacyo North and South.

In Somalia, Galkacyo is considered one of the areas with high concentration of IDPs and high acute malnutrition rates. The town also has one of the highest numbers of IDPs in need of water, sanitation, and hygiene (WASH) support. The town is an important regional hub for commerce between southern and central Somalia, the Somali region of Ethiopia and the port of Bossaso. In addition, the outbreak of COVID-19 and the subsequent measures are likely to negatively impact the access to livelihoods of already-vulnerable people, further aggravating their humanitarian needs.

Within this context, REACH conducted a market feasibility study in Galkacyo, in consultation with the Somalia Cash Working Group (CWG), aiming at understanding IDP HH needs and preferences in relation to the host community (HC), as well as vendor capacity in the main markets in Galkacyo.

Through assessing HHs' market needs and preferences and vendor expansion capacities, the assessment aims to support cash actors in Galkacyo to make evidence-based decisions related to the viability of cash and voucher assistance (CVA) and market based programming (MBP).

Household findings are based on surveys with 126 IDP HHs and 109 HC HHs, representative with a 95% confidence level and a 10% margin of error. Findings relating to a subset of this sample might have a lower confidence level and a wider margin of error.. Market findings are based on 93 structured key informant interviews with market vendors, and are indicative only. For a detailed overview of the methodology, please refer to page 3.