South Sudan Cash Working Group – Advocacy Note on Multi-Purpose Cash Transfer - March 2025

This fact sheet consolidates key highlights and advocacy messages from the Cash working group South Sudan (CWG SS) concerning the Impact of USAID freeze aid and termination of Multi-Purpose Cash Assistance (MPCA) projects in South Sudan. This document is designed to bolster advocacy efforts with donor agencies to secure increased funding for MPCA and cash coordination. Furthermore, this advocacy paper serves as an urgent appeal to the humanitarian community to recognize MPCA as a lifesaving intervention, urging financial service providers to lower their operational rates imposed on cash partners during this challenging period, and to foster greater integration with social protection programs.

Background and context

1. Following the issuance of the stop work order on January 20th 2025, the subsequent lifesaving waivers from January 28th, 2025, and the final project termination letters in late February, MPCA projects executed by partners in South Sudan have not received any waiver or continuation notice from USAID or the Department of State.

2. These unforeseen circumstances have led to the termination of approximately $9,905,567 worth of MPCA projects, impacting around 244,286 households in South Sudan. In a worst-case scenario, if US government funding for MPCA is not secured for 2025, the estimated transfer to recipients could plummet from a baseline of $30 million in 2024 to as low as $1 million in 2025. Although this scenario is unlikely, it underscores the potential trajectory, especially as other donors also reduce their funding.
   The cessation of these projects has had significant repercussions on joint market monitoring initiatives (JMMI), as the absence of field partners has severely disrupted monthly data collection efforts for JMMI.

3. An OCHA survey indicates that Cash and Voucher Assistance (CVA) is more adversely affected than in-kind assistance in South Sudan, despite CVA being more cost-effective and efficient where feasible.

Economics facts

As of January, JMMI data indicates that inflation and consumer prices have been increasing, which inevitably decreased the purchasing power of households and increased the cost of minimum expenditure basket.

According to the latest figures, as of January 2025 the food price index (CPI), the minimum survival minimum expenditure basket food basket (MSSMEB) and the minimum survival minimum expenditure basket continue to increase as compared to previous years indicating that overall consumer prices continue to be significantly higher in the country.