Cash-based interventions are transforming the way humanitarian aid is being delivered. We have seen a dramatic increase in the use of cash globally by 40 per cent between 2015 and 2016 (State of the World’s Cash Report, 2018). At least 28 countries in Africa have had some experience with cash-based interventions through vouchers, direct cash and mobile money; reporting that it is a much more efficient, timely and dignified way to support communities.
Cash not only provides an efficient and timely way to respond to the unique and complex needs of communities but even more importantly, gives dignity and power the people we serve so that they can respond to their own relief and recovery needs. We are increasingly using cash in our response to food insecurity, empowering communities to invest in their farms and businesses, ultimately encouraging an increase in production and economic access to food.
In Southern Africa, Lesotho, Malawi, Mozambique, Namibia and Zimbabwe have adopted some form of cash-based intervention, the most common being the distribution of e-money over a mobile network. In countries like Zimbabwe, cash transfers are combined with other basic needs, such as seeds.
The Nigeria Red Cross has supported more than 5,500 internally displaced people and returnees facing food insecurity in the north-east (Adamawa and Yobe States) through direct cash.
The Sahel region, where reoccurring droughts and floods – in addition to population movement – has had a severe impact on its population, leaving some 32 million people at risk of or struggling with food security. Vouchers have been key to increasing people’s access to food.
More than 252,000 people were reached through mobile cash transfers in Kenya, where more than 2.7 million people were food insecure following two consecutive failed seasonal rains.
Cash is likely to be a growing part of humanitarian action with an estimated $4 billion invested over the next 3 to 5 years. IFRC will continue to explore new opportunities to provide cash to the people we serve, allowing us to address the needs of the most vulnerable families in a holistic manner.