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Addressing Challenges in Humanitarian Cash and Voucher Assistance using Mobile

Money in Somaliland

Mobile for Humanitarian Innovation Workshop.

8th April 2019

Ambassador Hotel, Hargeisa

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Contents

1. Introduction ........................................................................................................................................... 3

2. Solutions: Key Action Point .................................................................................................................... 3

3. A little context........................................................................................................................................ 4

4. Cash and Voucher Assistance in Somaliland: a brief overview ................................................................ 4

5. Summary of Presentations. .................................................................................................................... 5

5.1 World Bank Study 7 ....................................................................................................................... 5

5.2 GSMA Research 8 ........................................................................................................................... 6

6. Process map of mobile money enabled cash and voucher assistance & identifying challenges in the

process .......................................................................................................................................................... 6

8. Prioritization of Challenges and Proposed Solutions .............................................................................. 8

9. Next Steps .............................................................................................................................................. 9

Annex 1: Participants List ............................................................................................................................ 10

Annex 2: Program Agenda .......................................................................................................................... 11

Annex 3. Photos from the workshop ........................................................................................................... 12

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1. Introduction

This report summarizes the discussions that took place during a one-day workshop held in Hargeisa learning event on 11th June 2019. The event brought together 32 people from Humanitarian organizations, Mobile Money Operators and a Government representative. The Purpose was to provide a platform to address challenges in Cash and Voucher Assistance (CVA) using mobile money in Somaliland and identify point of linkages or any bottlenecks between the humanitarian organizations and the private sector. In addition, it was an opportunity to discuss how each leverage on the support the private sector can give in improving the quality of CVA for the benefit of the affected population.

The event was convened by CaLP and, co-facilitated by CaLP and GSMA. The event involved presentations by Sahara Dahir, Jaki Mebur and Belinda Baah. The discussion was based on two handbooks by The GSMA, that will support mobile operators and humanitarian organisations to effectively operationalise mobile money enabled cash and voucher assistance (CVA) built on research done by GSMA in Somaliland.

The report was done by Sahara Dahir and Jaki Mebur.

2. Solutions: Key Action Point

A bottleneck was identified by the participants on the area of verification, where agencies have different ways engaging the Mobile network operators in the verification of receipt of Cash assistance. The development of harmonized standard operating procedure (SOPs) was recommended. This will be led by the Cash Working Group and the GSMA can provide support in the form of funding technical expertise as well as rally MNO involvement.

Specifically, for Somaliland it was pointed out that IDs were provided during elections for free. Currently there is fee for anyone who has not at the time. It was recommended that advocacy with Government to provide IDs for free be done jointly by the MNOS, Somaliland CWG, Development actors and NGO Consortium.

Photo: 1 Hiba AbouSwaid, Participant explaining the mapping activity

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3. A little context

Over the last decade, cash and voucher assistance (CVA) has become an increasingly important

modality in humanitarian response in Somaliland.

In 2017/18, for example the Humanitarian Response Plan1 sought to target 5.5 million people

needing assistance. A wide variety of cash and voucher assistance provided life-saving and

livelihood support to vulnerable people across the country. At the same time, CVA has become a

key modality in resilience programmes utilized.

According to the “Evaluation of the 2017 Somalia Humanitarian Cash-Based Response” 2mobile

money as a transfer mechanism is seen as having the ability to eventually go to scale where a cash

modality is feasible. It provides potential advantages in terms of security and cost; with challenges

in terms of the verification of beneficiaries and traceability of use. Further, a recent World Bank3

study highlights risks of mobile money due to weak regulation and a lack of parity between e-

money and cash in banks.

There are huge opportunities to strengthen the use and reach of mobile money as part of CVA in

Somaliland. With this intent, GSMA and CaLP organized a workshop that brought together mobile

money operators and humanitarian actors to explore opportunities and challenges and, ultimately,

identify how gaps and needs can be addressed. This workshop is the start of a journey, whereby

some actors will come together to the design and test practical solutions to the address some of

the identified problems.

4. Cash and Voucher Assistance in Somaliland: a brief overview

A total estimated value of $267 million was disbursed as CVA for 2018 in Somalia4 and it is

estimated $292 million will be needed for CVA disbursals in Somalia – 27% of all planned

humanitarian assistance in 2019. (OCHA 2019).

Almost 1 million of 4.8 million beneficiaries will be in Somaliland – approximately 19

percent of all CVA in Somalia (OCHA, November 2018)

1 https://reliefweb.int/report/somalia/2018-somalia-humanitarian-response-plan 2 http://www.cashlearning.org/resources/library/1249-evaluation-of-the-2017-somalia-humanitarian-cash-based-response 3 http://documents.worldbank.org/curated/en/975231536256355812/Rapid-Growth-in-Mobile-Money-Stability-or-Vulnerability 4 Ibid. 2

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Looking at modalities of distribution, it is estimated that approximately 10% to 15% of CVA

beneficiaries in Somaliland received CVA via mobile money, with the rest being delivered

via vouchers and smart cards.

Mobile money is the dominant digital financial service in Somaliland and can be leveraged

to better serve those affected by humanitarian crises. 78% of the adult population (over

16yrs) have access to a mobile money account while in contrast less than 14% have access

to a bank account. 5

Given the ubiquitous nature on mobile money in Somaliland, it is well worth addressing

the challenges faced by humanitarian agencies in using mobile money for CVA.

In August 2018 an Inter-agency evaluation of CVA in Somalia6 identified challenges in using

mobile money as coverage issues in rural and remote areas, and, beneficiary identification.

During this workshop, the process of CVA via mobile money was mapped, challenges

during these processes identified and potential solutions proposed.

5. Summary of Presentations.

5.1 World Bank Study 7

The World Bank Study highlights how Mobile money is an essential part of Somalia’s

economic ecosystem with almost three-quarters of the population aged 16 and above

use mobile money on a regular basis. It is now the main transaction instrument used by

both individuals and businesses across the country: presenting an opportunity to increase

access to finance, spur inclusive growth, and promote resilient communities. However,

with increasing dependence on mobile money as a medium of exchange comes increased

vulnerabilities.

This study set the scene for further discussion during the workshop on the challenges in

using mobile money for CVA and possibilities in addressing these challenges.

5 Ibid. 3 6 https://www.alnap.org/system/files/content/resource/files/main/1538990263.2018-08%20-%20Somalia%20CWG%20Eval%20Rpt%20of%202017%20CBA%20response%20-%20Low%20Res%20for%20email.pdf 7 Ibid. 3 8 https://www.gsma.com/mobilefordevelopment/blog/the-case-for-mobile-money-enabled-cva-programming/

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5.2 GSMA Research 8

The GSMA Mobile For Humanitarian Innovation team has produced two research based

handbooks with the overall objective of highlighting the opportunities and pain points

associated with operationalising mobile money in humanitarian contexts.

Each handbook delves deeper into the aspects that each stakeholder needs to

understand for the partnerships required for successful mobile enabled CVA.

There is of course overlap between the two handbooks – the overarching message is that

collaboration and a shared value proposition are key to the success of mobile money

enabled CVAs

Third report – mobilising CVA – maps out the different modalities of disbursement

available for CVA and the opportunities for mobile money within it. It also provides a

short section on how the humanitarian sector functions for those less familiar, outlining

the shift to cash and the reasons behind the sectors desire to go digital.

6. Process map of mobile money enabled cash and voucher assistance & identifying

challenges in the process

The Process mapping activity was carried out by first breaking out into 3 diverse groups( it

was essential that the group members were not from the same organisations), the process

by which decisions on CVA were made, from targeting to disbursement and reporting were

then mapped out.

Group 1 Group 2 Group 3

-NGO Need Identification + CVA Assessment + MNO engagement and selection -NGO Fund Mobilisation -NGO Beneficiary Targeting and Verification through pre-defined selection criteria

1. Beneficiary selection - Inappropriate selection

of beneficiaries - Verification – no use of

biometrics - Poor communication

mobilisation 2. Beneficiary registration and

verification

1. Preparations (system setting, assessment, research, due diligence , MoU)

2. Beneficiary Selection and Registration

- Targeting the right Beneficiary

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-Challenges - Right People Selection -Duplication of Beneficiaries -NGO Registration of Beneficiaries

-Challenges – Biometric Fingerprint capture problem

-MNO SIM and Mobile Money Registration of Beneficiaries

Challenges KYC Poor Coverage Mobile Handset Illiteracy

NGO/MNO Final List Confirmation NGO Fund Transfer to MNO MNO Transfer of fund to beneficiaries Wrong Transfer MNO Payment Report NGO Post Distribution Monitoring + Hotline for beneficiary feedback

Challenges - Verification 1. NGO Reporting

3. Develop master list 4. Modality selection 5. Delivery mechanism 6. FSP procurement process

NOTE: community preference

7. HHD survey for mobile usage - Lack of handsets and

sim cards 8. Distribution for/and

activation - Poor Network

9. Release payment to operators - Delay of release of

funds to FSPs

10. Checking the list - Lack of IDs

11. Cash distribution - Literacy on mobile

money usage (beneficiaries)

- Poor network 12. Post Distribution

Monitoring - Loss of sim cards and

phones 13. Reporting /

reconciliation by NGO / FSP

Other identified challenge included Inaccessibility (road, remote, hard to reach)

- Data Quality - Common

Names - Location

(Network Challenges)

3. Verification and Validation (final Master List )

- ID Verification Problems (KYC)

4. Approval of Payments List (Sending funds to Service Provider)

- Approval Challenges

- Data Correlation (Syncing list between SP and NGO)

5. Verification 6. Disbursement and

Distribution - Incorrect

Numbers - Network

Coverage Issues 7. M&E and Feedback

- Verification Issues

- Time - Cost

NB: All steps have reporting

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8. Prioritization of Challenges and Proposed Solutions

The challenges at each stage of the mapped out process were highlighted, and then

prioritised by importance.

The Prioritisation was done by use of coloured stickers to vote on the challenges. Each

participant had 3 stickers (Red – 1st Priority, Orange – 2nd Priority and Green-3rd Priority)

There was gallery walk through of the process maps with challenges ( see pictures at the

end of the report), where the participants had the opportunity to vote on the challenges

that they perceived to be important.

The challenges with the most number of voting stickers were then discussed and a brain

storming session on possible solution was conducted. Next steps were then determined

on how to address those challenges.

The top three challenges with possible solutions were discussed as below;

Targeting/Verification KYC/Lack of IDs- Avoiding

double Registration

Digital Literacy

- Proper coordination of all

actors

- Information sharing

- Sharing databases

- Strengthening the village

committees

- Develop Harmonized

Standard operating

procedures

- Collaborate with TAF

- Cross checking the two

lists-MNOs/Hum agencies

- Reference checks

- Simplified KYC- willing

to register beneficiary

without ID

- Agency issue IDs

- Advocacy with the

MNOs to accept project

IDs-

- Advocacy with

Government to issue IDs

- Biometric registration

- Strengthen the

capacity of Government to

provide IDs

- Training

- Interactive voice

response

- Strengthen feedback

mechanism

- Simplifying menu-

shortcodes

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Awareness/Sensitization

/

- Training on Zaad/Edaah

- Aqoonmaal-shortcode

for education purposes

- Basic numeracy classes

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- Verification-20% of the

registered beneficiaries-

is not enough

- One selection criteria

- Policy on verification

- Single registry

- Double factor

identification

- Biometric registration

- Compliance with

international data sharing

data protection

Including the MNOs from design

stage

- Use simplified KYC

- Common platform for

data sharing

- Donor to

- Adopt phone number

as valid KYC e.g. use of

Phone number attached

with the plate number of

the cars- for tax

compliance.

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9. Next Steps

To address the challenge of targeting and verification the Hargeisa workshop participants

recommended development of harmonized Standard Operating Procedures (SOPs). The

Cash Working Group will lead this and the GSMA can provide support in the form of

technical expertise and rally MNO involvement.

On the matter of Lack of IDs it was recommended that Advocacy with Government to

provide IDs for free be done jointly by the MNOS,CWG,EU and NGO CONSORTIUM

On digital Literacy, it was noted that the various members were already addressing digital

literacy through various programmatic interventions and there was no need to duplicate

efforts.

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Annex 1: Participants List

NAME ORGANISATION

Roda Isak Ali UNHCR

Mukhtar Abdi Jama UNHCR

Ali Osman Ismail Candelight

Mawhid Musa Ibrahim NADFO

Mohamed Nur Jama Save The Children

Hussein Ismail ADO

Abdiaziz Bilal PENHA

Abdirahman A Jama PENHA

Daud Ismail Abdi TASCO

Abdiaziz Bakaal TASCO

Saed Ismael World concern

Kaitlyn Scott Cash Consortium

Mary Karanja WFP

Abdi Nur CARE

Mustafe Jama CARE

Tesfaye Abebe VSF

Abdirahman Shire Telesom

Mahamud Abdirahman Telesom

Abdullahi Omar DRC

Hiba Abou Swaid FAO

Abdifatah Isaac DRC

Abdirizak Mohamed Action Aid

Hibo Warsame Somtel

Fuad Nuh Dahabshil

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Omar Diouf German Red Cross

Abdikarim Yusuf WFP

Sahara Dahir CaLP

Esther Mbogo CaLP

Belinda Bah GSMA - M4H

Jaki Mebur GSMA - M4H

Annex 2: Program Agenda

GSMA-CaLP

Workshop Agenda.pdf

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Annex 3. Photos from the workshop

Figure 3: Group Work-Mapping out the CVA Process Figure 4: Group Work- Highlighting challenges on the process map

Figure 2: Belinda Baah, GSMA, presenting the GSMA Research

Figure 1: Sahara Dahir, CaLP, kicking off the event

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Figure 5 – 7: Voting on Priority Challenges