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Market Assessment and Cash Feasibility Study Report Babile Woreda, East Harerghe Zone
Oromia Region, Ethiopia
APRIL 20 – 25, 2020
Babile
Report by : ZOA Ethiopia, Emergency Response Teams Oromia Programme Area, East Harerghe Zone
TABLE OF CONTENTS
A. Background .................................................................................................................................................... 3
B. Objectives and Methodology ......................................................................................................................... 4
C. Limitations ..................................................................................................................................................... 4
D. Main Findings ................................................................................................................................................. 5
D.1 Priority Needs .............................................................................................................................................. 5
D.2 Market Functionality and Capacity ............................................................................................................. 5
D.3 Delivery Mechanism Options and Financial Service Providers ................................................................... 8
E. Risk Identification and Mitigation Measures ............................................................................................... 12
F. Conclusions and Recommendations ............................................................................................................ 14
Annex 1: Rapid Market Assessment Questionnaires ..................................................................................... 16
A. BACKGROUND After the conflict between Somali and Oromia Regions and the Guji-Gedeo conflict, currently a total of 116,940 HHs of IDPs are living in Oromia region in 388 different sites, according to the DTM 17 conducted on May 2019. The Multi-Agency Returnees Need Assessment Report of East and West Hararghe Zones of Oromia region conducted in August confirmed a total of 59,188 IDP HHs are residing in the zone. Out of which 32,884 HHs (28,825 Men and 9,009 HHs Female) are returnees, whereas a total of 26,304 HHs ( 16,476 Men and 9828 Women) are not yet returned to their home. Besides this due to the current high rainfall in the areas, a total of 2112 HHs IDPs-returnees shelter has been damaged as per the East Harerghe Zone Disaster Risk Management Office (DRMO) report of April, 2020. Babile Woreda, located in East Harerghe of Oromia region, host to approximately 59,188 HH returnees residing across 10 Kebeles/ sites and the host community. On April 2020, the woreda DRM Office reported that 2,112 HHs Shelters have been damaged as a result of high rainfall with thunder and flood. Out of this, 142 HHs shelter was constructed with corrugated iron sheets and the 1970 HHs shelter was covered by a plastic sheet. ZOA Ethiopia has designed and currently implementing projects in response to the tremendous Shelter Repair, reconstruction and Emergency Shelter with Non-food Item(ES/NFI) based on the need for returned IDP communities of Babile woreda. Through this project titled ‘Life Saving Emergency Shelter Repair and Emergency Shelter Non-Food Items Response for Returnees in Babile Woreda of East Hararghe Zone, Oromia Region’ ZOA has planned to address a total of 800 HHs (4000 Individuals ) returned IDPs (400 Girls, 320 Boys, 2080 Women and 1200 Men). 50 % of total project beneficiaries will benefit from ES/NFI kits and the remaining 50% will benefit from Emergency Shelter repair kits. The overall objective of this Shelter intervention is aimed at delivering a holistic shelter repairing and reconstruction (including the construction of model repaired shelters) and ES/NFI services to save lives and reduce the vulnerability of returned IDPs due to poor shelter service and to protect and restore their livelihoods. The ES/NFI intervention will be a combination of cash 30% and 70% in-kind. The shelter repair kits will also consist of Cash for local materials and labor with the remaining assistance in kind. Additional activities include the facilitation of Building Back Better (BBR), HLP and Protection mainstreaming training for target groups, local government authorities and local community members; market assessment and -post-distribution monitoring of shelter repairing kits and post construction monitoring. The project is also in line with the gap analysis and prioritization by the National Shelter Cluster and the official request from East Hararge Zonal and Woreda Disaster Risk Management Offices (DRMO) for intervention. One of the components of the interventions conducting market assessment in Babile. As a result the assessment is conducted in Babile Woreda on April 20 to 25, 2020.
B. OBJECTIVES AND METHODOLOGY The objective of the market and rapid cash feasibility assessment in Babile Woreda is to:
• Confirm the feasibility of cash assistance to address prior needs of IDP households in Babile • Assess the market functionality and capacity to respond to the increase in demand if cash transfer is provided
• Identify appropriate delivery mechanisms for cash transfers, including the capacity and accessibility of
financial service providers to the target population. • Adapt the Minimum Expenditure Basket (MEB) of the Cash Working Group and finalize the transfer value
for multi-purpose cash relevant to the context A team of ZOA Ethiopia CO and Field staff collected information through:
• Key informant interviews with implementing partner staff and woreda officials, including Disaster Management, Deputy Administration, and Revenue Bureau (5 key informants)
• Interviews with market actors, vendors and wholesalers selling a range of priority items required by the target group (9 market actors)
• Interviews with financial service providers (FSPs) in Babile, (5 FSPs) • Price and availability collection of priority items for shelter and Food in the Minimum Expenditure
Basket (MEB) Key questions for each category of stakeholder were developed in advance, informed by questions from the rapid market assessment tools shared by the Ethiopia Cash Working Group (ECWG), the ECWG’s Cash Transfer Programme Guidance Manual, the IOM Rapid Assessment of Markets (RAM) and Cash in Emergencies Toolkit.
Data collection was qualitative, and complemented by a price survey conducted by ZOA staff on 20th April 2020.
C. LIMITATIONS The assessment plan had originally included interviews with a sample of IDP/Returnees households to better understand market access, priority needs, preferences for different delivery options, access to identification documents, financial services and perceptions of risks or challenges around cash transfer programming. However, the team was unable to talk with IDPs /returnees directly due to high levels of frustration and hostility with local government and humanitarian organizations. This was reportedly due to the limited concrete assistance and action that has been taken by actors to meet the immediate needs of the IDP population since their displacement, despite multiple assessments conducted. Hence, conducting additional assessments would pose a security risk for staff and local officials, therefore only site observations were conducted at different kebele sites, in addition to the aforementioned activities. The assessment plan was intended as a rapid assessment to inform quick program set up and response, and therefore was not quantitative nor did it constitute an in-depth analysis of market dynamics in the area. The assessment provides significant information on the general feasibility of cash assistance, different delivery options and possible payment providers that could be considered in Babile.
Besides, market information particularly on customer volumes and commodity prices were likely be influenced by the general trends of Ramadan, i.e. reduced demand due to fasting and also higher prices anticipated when demand increases immediately before Eid. However, price collection has been conducted while assuming the price will return to normal afterward.
D. MAIN FINDINGS
D.1 Priority Needs The Rapid Market Assessments was conducted during April 2020 by ZOA team. The results of the RMA revealed the following priority needs:
▪ Food: the main source of food for IDPs/Returnees in Babile woreda is the food ration provided in-kind by the DRM office. This is generally 15kg of cereals (either wheat grain or maize) per person per month and 0.45 liters
of vegetable oil. Woreda officials reported that food rations were inconsistent (sometimes only grains or oil distributed), not culturally appropriate to the IDP/returnees population (usual staples are macaroni, pasta and rice) and insufficient to cover dietary and nutritional needs. During the April assessment rations had been terminated due to delay from WFP for unknown reasons. IDPs are reportedly selling up to 50% of rations received to access other complementary food items such as vegetables, tomato, onion, pepper, milk, meat, eggs and non-food items -blankets, mats, kitchen utensils.
▪ Non-Food Items (NFI) and Shelter: Overcrowding and lack of shelter repairing kits for the damaged shelters in some major four kebeles of Babile woreda has shown the IDPs /returnees in need of immediate cash assistance for shelter repairing. With IDPs/returnees it is highlighted that they lack basic items such as blankets, mattresses, pillows, and basic cooking utensils. IDPs/returnees are mainly usging wood to use as cooking fuel in the absence of resources to access kerosene and stoves.
Based on the consultations with key informants and partner staff, there has been no significant change in the situation in terms of need. ZOA will begin to repair shelters with cash assistance for 400 HHs on four kebeles of Lekole, Ere Arba, Shekhussien and Ereguda sites allocated by the government. The government continues to provide food rations but as indicated by the key informants these are not culturally in line with beneficiary needs and are insufficient to cover the needs of the household. There have also been no further NFI distributions such as blankets, sleeping mats, clothing, cooking pots, utensils, stoves, soap, basic cleaning items and sanitary items to address the basic needs of households who lost their house due to the flood damage. ZOA is in the process of cash distribution and the beneficiaries selection has been finalized while the agreement with the Financial service provider of Awash Bank is under process.
D.2 MARKET FUNCTIONALITY AND CAPACITY
General Market Situation The main market place in Babile town serves the woreda residents in the town and surrounding rural areas. The market is functional and active throughout the week. There are a range of vendors, retailers and wholesalers in the town’s market place. However, there is no accurate figures available on the exact number of vendors operating in the town. Hence, estimates from local vendors and retailers interviewed suggested that there are over 10 shops stocking clothing, shoes, mats, blankets; between 10-15 selling non-food items such as jerry cans, stoves, cooking pots, washing basins, cups, plates; up to 20 selling various food items (staple and fresh foods); around 04 Building materials suppliers, around 10 staple food wholesaler/retailers and 5-10 wholesalers of mats, blankets and other non-food items. Although accurate figures for the number of vendors and wholesalers operating are not available, estimates and observation by the assessment team suggest there is considerable competition and a wide range of actors operating in the market. The Crop/ planting season is usually when demand in the market is lowest (May/June), with the highest demand during the harvest seasons (usually from September to January).
Availability Vendors have a wide range stocks of items that would likely be prioritized by the IDP/returnee population. This includes clothing items, shoes, mats, blankets, jerry cans, washing basins, metal plates, cups, utensils, kettles, small kerosene stoves, laundry soap, body soap, handheld torches, and solar lights as well as shelter construction materials like (CIS , pole, ropes , plastic sheets ..etc ).
In terms of food items, there were a large number of small petty traders and farmers selling fresh foods produced in the surrounding areas, including potatoes, onion, tomatoes, and mango. IDPs/returnee in the area mostly prefer to cook pasta, macaroni and rice as a staple. These items were also readily available with the food retailers consulted. Majority of people confirmed that IDPs /returnees had been selling part or all of the grain/maize rations received to buy these items instead.
All vendors consulted had items in stock, and none reported any items being unavailable. Based on the demand of their customers they have a capacity to quickly source any items not available in stock. Some vendors reported that their stock levels were lower than usual mainly due to lower purchasing power in the area and increases in the buying price (see below).
Integration Babile town market appears to be well integrated with vendors having a diverse number of suppliers and locations where they source their stock. The main markets suppliers use to restock are Jijiga (80-90 Km), Harar (25-30km away), Dire Dawa (80 km away), Nazret/Adama (460km), Addis Ababa (560 km away), and other markets in the Somali region. The market in Babile town is well connected to other markets – with small shops at the village level restocking from Babile. Retailers and wholesalers in Babile can restock in 1 to 2 days. If supplies are unavailable or inaccessible from one supplier or location then vendors have possibilities to adapt and source from other places like Harar, Diredawa and Jijiga easily.
Prices Almost 80% vendors reported a general increase in prices over the last 6 months, largely due to the COVID-19 and devaluation of the ETB against the USD. Increasing the general price was consistent across all items. One example from a food retailer (selling rice, grain, macaroni, oil as well as laundry soap and other items) was that a bag of rice that currently cost 1500 ETB was 1300 ETB. This shows there is a 15% increase in the price as compared to the previous year. Another retailer reported that containers that currently cost 1000 ETB were 700 ETB. Fluctuations in the currency leads prices to be slightly higher each time when vendors restock. The main impact of currency fluctuation has been inconsistent profit for some vendors and also some vendors keeping lower stocks than usual due to limited purchasing power in the area.
Most vendors reported good competition in the market, with similar shops having more or less aligned prices. All vendors indicated that an increase in demand would not affect the price of items as it creates a competitive market environment. The only thing that might influence the price would be if the supply cost increased on Non-Food and Foods items. However generally, despite general price increases all vendors reported maintaining the same profit margin on items (e.g. sales price for customers was increased in line with buying price for retailers).
Despite this, one retailer mentioned that although the state of emergency had resulted in higher prices as compared to the previous year, they anticipated that this will be normalized with the general improvements to the COVID-19 and political situation in the region.
Capacity
Generally the number of customers was slightly lower in the month preceding the assessment due to Ramadan, with the average number of customers ranging from 10 – 30 per day, with 20-60 customers on a market day. All vendors who participated in the assessment had items in stock, with the capacity to increase (e.g. available storage space etc.) if needed. Most suppliers reported that there is a decrease in demand in the preceding 6 months as a result of conflict, increasing prices of goods and also a decrease in purchasing power among the general local population. One vendor mentioned that this was due to decreasing prices for agricultural production which impacted the rural population’s ability to buy other items. The same vendor estimated that around 95% of his customers came from the surrounding rural areas, with only 5% coming from the town.
Given the estimated population size of the area served by the market (woreda population of around 100,000), an increase in demand and cash flow in the market resulting from providing cash transfers to around 400 IDP households, would not represent a significant market flactualtion (e.g. around 0.02%). All vendors except one, reported consistently that they have a capacity to meet the increasing demand as they have sufficient stock. Majority of vendors mentioned that they would prefer to have notice in advance of any cash transfers so they could anticipate an increase in demand and have sufficient stocks in place. 50% of vendors consulted accessed their supplies on credit. This was a maximum of 50% credit and the remaining paid upfront.
All vendors were able to restock within one to four days, with a mix of vendors going to collect stock themselves or have it delivered depending on items requested. Some smaller shops reported sharing transportation with other suppliers to reduce costs. No vendors reported any significant challenges if cash transfers were provided to the IDP/Returnees population.
Accessibility
Although IDPs could not be consulted directly about which markets they accessed most frequently, the four Major kebeles sites that are hosting IDPs returnees are located near Babile town. Vendors consulted during the assessment reported that a small number of IDPs were already accessing the market to buy essential items but the main barrier was purchasing power – both for IDPs and the host population residing in the town.
The market in Babile also serves the rural population of the woreda with the majority of people accessing the market on foot or by public transport depending on the distance. This applies to IDPs residing in host communities. Constraints Although vendors consistently reported facing no challenges in increasing their stocks to meet an increase in demand from a potential cash transfer program, they did report the following general constraints they had been facing in their business in recent months:
▪ Purchasing power among the local population ▪ General increase in taxes payable to the government ▪ Internal customs: some vendors reported that there were still inspections on their goods when supplying
from certain areas. This was part of government efforts to combat smuggling but was also impacting legitimate vendors as they are incurring costs to unload and load trucks during customs inspections
▪ Transportation availability and cost for some vendors was also reported as a challenge (this was among vendors of larger NFIs that might incur breakages in transit and required larger trucks to transport)
▪ Currency devaluation generally had impacted prices for vendors to purchase and also sales prices for customers.
Market Capacity to Support a Cash Programme The above information on the market in Babile indicates that unrestricted cash transfers is a feasible option to meet the immediate needs of IDPs/ Returnees. The range of items prioritized in the Minimum Expenditure Basket (MEB) of
the Cash Working Group, and needs identified during previous rapid assessments in Babile, are all available and vendors
have a capacity to meet any additional demand for other items. The IDP /returnees population is residing within walking distance of the market, and key informants mentioned no challenges for either women or men to access markets.
Providing cash transfers would support local vendors who have been struggling due to a general decrease in purchasing
power among the local population and increasing running costs. Despite this, some key informants mentioned concern about potential price increases during cash transfer distributions, therefore the risk matrix below outlines some
possible risks and mitigation measures to reduce the likelihood of this happening.
D.3 DELIVERY MECHANISM OPTIONS AND FINANCIAL SERVICE PROVIDERS The assessment also explored the available delivery options for cash transfers in the local area. This included meeting with all financial service providers with a branch in Babile, or was in the process of opening one. The below table summarises the delivery options available and their appropriateness for emergency cash transfer delivery, and Table 2 offers more detailed explanation.
Table 1
Delivery
Pros
Cons
Recommendation
Option
Direct cash in • Simplicity of process for • Safety and security risks for Not recommended due to
envelope Beneficiaries implementing organization staff security concerns, lack of
distribution by • Flexibility to decide on • High risk of fraud experience in cash transfer implementing distribution location and timing • Limited staff experience/capacity distributions of implementing
agency • Doesn’t require specific ID among implementing organisation partner and fact that cash in
issued by the government to to manage cash distributions envelope distributions are more
Access • Manual distributions will require prone to fraud.
more manual reconciliation and verification process on the part of the implementing agency and takes time
Direct cash • Simplicity of process for • Requires physical presence of staff Recommended as immediate
distributions Beneficiaries at distribution site – may not be solution to transfer cash to
by third party • Flexibility to decide on cost efficient for multiple rounds beneficiaries, particularly for (e.g. bank or distribution location and timing of distribution one-off transfers.
financial • Can also use established • Doesn’t promote access to Can be used while agreement
institution) structures of FSP if distributions financial services among with an FSP is negotiated to occur through bricks and beneficiaries enable account opening for
mortar branch (pre-existing • Manual distributions will require beneficiaries. security management in place) more manual reconciliation and
• Doesn’t require specific ID verification process on the part of issued by the government to the implementing agency (takes Access time and staff)
• Reduced risk for staff as FSP manages cash movement and Distribution
• Relatively quick to establish and roll out (once agreement is established)
• Positive past experience using similar mechanism and provider among other humanitarian organisations
• May not incur any costs if FSP can conduct direct cash distributions from their branch or nearby
Mobile money • Convenient for beneficiaries – • Would take considerable time to Not recommended for can cash out or pay for goods set up including negotiation with immediate cash transfers due to at any participating agent service provider, provision of inconsistent access to mobile
• Easier to conduct multiple SIM/phone to beneficiaries, phones, lack of familiarity with
distributions as transfers are account opening, training and mobile money services and set-
more automated / can be done orientation for beneficiaries on up time and costs.
in bulk and without needing to accessing services/cash. Could be explored further if
have physical contact with the • Majority of IDPs do not have multiple monthly distributions
beneficiary each time access to required ID to open are confirmed.
• Potentially could increase account/register SIM (would Access to financial services require negotiation with service among beneficiaries (though provider to accept NGO-issued ID)
requires considerable trust • Evidence from other contexts building and positive suggests that it may not be experience to ensure continued appropriate (or effective) to use) introduce new technologies immediately following an emergency
• Unreliable network coverage might result in failed transactions
• Limited agents in Babile area (only 4 for one provider) – may require more agents to be established
• Liquidity challenges among agents have also been a barrier in other parts of Ethiopia
Bank account • Easier to conduct multiple • Majority of IDPs/returnees do not have Not recommended for
payments distributions as transfers are access to required ID to open immediate cash transfers due to more automated / can be done account (would require set-up time and costs and need in bulk and without needing to negotiation with service provider to negotiate on ID have physical contact with the to accept NGO-issued ID) requirements. beneficiary each time • Would take time to set-up
• Potentially could increase agreement with service provider, Recommended for medium- access to financial services open beneficiary accounts and term response (e.g. for follow- among beneficiaries (though orient/train beneficiaries on up monthly distributions after requires considerable trust available services and how to initial cash transfer is provided). building and positive access cash.
experience to ensure continued • Target beneficiaries may not be Explore with FSPs with physical use) familiar with banking services branch in Babile flexibility on • More dignified as beneficiaries therefore making the withdrawal accepting NGO issued ID to can access cash transfers process more complex from open accounts for future through established institution beneficiary perspective follow-up distributions. without it being noticeable that • Minimum account balances and they are a recipient of deposit amounts apply assistance.
The majority of IDPs/Returnees in Babile woreda reportedly do not have any temporary-issued ID or kebele ID from authorities. This complicates the process of opening a bank account for beneficiaries to receive cash transfers. Direct cash distributions conducted without an account by a service provider is preferred as there is reported flexibility on the type of ID that can be accepted. For example, Awash bank mentioned that they can conduct cash distribution on the basis of an NGO-issued ID card provided to beneficiaries. There may be potential to negotiate with FSPs at a national level to accept NGO-issued IDs to open bank accounts however this will take time and is more applicable for follow-up cash assistance, and not for the immediate planned first cash transfer response.
The below table summarises the available FSPs,their capacity and relevance of services offered (Annex 2 offer more detailed information). Given the urgency of needs, timeliness for setting up the payments, simplicity of process for beneficiaries, and experience implementing humanitarian cash
transfer programmes, FSP (Financial Servcie Providers) were prioritised. Hence, only those service providers with a presence in Babile were considered. Table 2
Financial Service Description of Services Considerations Recommendation
Provider
Awash Bank - Direct cash distributions to - Awash bank has experience - Explore agreement for beneficiaries inside branch delivering cash transfers for other first round of cash
or outside at distribution humanitarian agencies to IDPs in transfers
Sites East and West Haraghe - Verify experience of
- Payment into beneficiary - Willing to accept NGO-issued ID other humanitarian accounts - No fees/costs if distributions organisations
conducted in or close to Babile branch - Able to deploy additional staff from other branches in the region if required
Commercial Bank - Payment into beneficiary - Good capacity at branch level - Explore possibility of of Ethiopia (CBE) accounts including separate space to organise opening beneficiary
- Mobile money transfer account opening and withdrawals accounts without (CBE-birr) - No previous experience at branch government-issued ID for
level doing humanitarian cash follow on distributions
transfers - Verify experience of
- Requires beneficiary account other humanitarian
opening (which may take time and organisations
require negotiation on acceptable forms of ID)
Cooperative Bank - Payment into beneficiary - Good capacity at branch level - Explore possibility of of Oromia (CBO) accounts - No previous experience at branch opening beneficiary
- Mobile money transfer level doing humanitarian cash accounts without (HelloCash) transfers government-issued ID for - Requires beneficiary account follow on distributions opening (which may take time and - Verify experience of require negotiation on acceptable other humanitarian
forms of ID) organisations
Wegagen - Payment into beneficiary - Limited capacity at branch level - Explore possibility of Bank accounts - No previous experience at branch opening beneficiary
level doing humanitarian cash accounts without
transfers government-issued ID for
- Requires beneficiary account follow on distributions opening (which may take time and - Verify experience of
require negotiation on acceptable other humanitarian forms of ID) organisations
Ethiopia Postal - No money order/transfer - Very limited capacity at branch level - Explore possibility of Service service available at Babile (only one staff member) cash distributions at HQ
branch - Don’t offer relevant services at level for future (as part branch level – would require of emergency negotiations At HQ and preparedness measures) establishment of specific capacity - Verify experience of for the project other humanitarian
E. RISK IDENTIFICATION AND MITIGATION MEASURES
The following table outlines potential risks identified during the assessment and subsequent discussions with ZOA staff regarding the use of cash transfers to address multiple needs of the IDP population.
Likelihood
Impact
Category Risk (1 = low, (1 = low, Mitigation
5 = high) 5 = high)
Safety and Increased tensions 1 4 • Unlikely given relationship and cultural/ethnic
Security between IDP and host similarity between IDP and host communities.
community if only IDPs • Messaging on the programme objectives and
receive cash transfer purpose of cash transfer to be disseminated to
authorities, host and IDP communities.
• Feedback mechanism in place and regular
monitoring of the situation to identify any changes.
Safety and Security risk for staff 2 4 • Prioritise partnering with a third party/service
Security and/or beneficiaries provider to deliver cash transfers.
during distributions • Prioritise distributing through established branch of
service provider where necessary security and risk
mitigation measures are already in place.
• Ensure appropriate selection of distribution sites (if
outside a bank branch).
• Stagger distributions across 7-10 days to prevent
overcrowding and communicate well to all
beneficiaries on the schedule.
• Ensure distribution plan is in place prior to each
distribution, and all staff (FSP, government and
agency) are briefed on procedures and
roles/responsibilities.
Programmatic Market prices increase 2 2 • Market already serves rural areas, and IDP due to significant population represents 0.2% of this
increase in demand • Inform vendors in advance of the distribution of the
plan so they are able to mobilise sufficient stocks
and ensure preparedness
• Monitor prices pre, during and after cash
distributions to detect any potential negative impact
on market availability and price
Programmatic Market prices increase 3 2
due to national
inflation • Continue to monitor exchange rate and impact on
prices in Babile
Programmatic Transfer value 2 4 • Collect updated prices in local market to determine
insufficient to meet final transfer value
needs of target group • Continue to monitor prices throughout distribution
• Transfer value to be based on context-specific MEB
relevant to target group needs
Programmatic Inability to obtain 4 4 • Advocate with donors and coordinate with other funds for subsequent actors to identify funding for follow on cash
monthly distributions transfers for regular monthly food and non-food
for recurring food and Needs non-food needs
Programmatic Identification errors – 1 3 • Final distribution list based on 100% beneficiaries do not registration/verification exercise of all IDPs in Babile
attend distributions Woreda
• Appropriate channels used to inform beneficiaries of
distribution process, location and time
• Post-distribution monitoring conducted to verify
receipt of cash transfers
Programmatic Identification errors – 2 3 • Final distribution list based on 100%
registered beneficiaries registration/verification exercise of all IDPs in Babile
do not meet targeting Woreda
criteria • Feedback mechanism in place for reporting of
inclusion errors
Programmatic IDPs not included in 1 3 • Sensitisation among host and IDP communities on
distribution targeting criteria, purpose of assistance and how to
contact agency if IDPs were not included on woreda
initial lists
• Feedback mechanism in place for reporting of
inclusion errors
Programmatic Identification errors – 3 2 • Collect household information for all beneficiaries
duplication during registration
• Conduct duplication checks of all registered
beneficiaries (e.g. by name, father’s name)
• Work with local community and authorities during
registration process to prevent duplicate
Registration
Programmatic Financial losses due to 2 3 • Issue beneficiary photo IDs to serve as verification of corruption registered beneficiary being present at distributions
• Establish SOPs for whole distribution process with
appropriate division of responsibilities and
mitigation measures for fraud/corruption
• Agree roles and responsibilities among agency and
FSP
• Agency staff presence throughout distributions
• Post-distribution monitoring to cross check receipt
of transfer and intended transfer amount
Programmatic Misuse of cash 2 2 • In line with ECWG guidance distribute to female in transfers on non- household wherever possible
essential goods • Orient household on purpose, amount and duration
of assistance
Table 3 Price of shelter NFIs items collected from vendors
S.No Items
Sample Shelter NFIS Price collected from vendors of shelter repairing material supplier
Vendor 1(Jemal Ahmed )
Vendor 2(Ibrahim Issack -
LenteborTrading Plc)
Vendor 3(Adera
Mengistu )
Vendor 4 (Smai Mengistu )
1 CIS(corrugate Iron Sheet) 180 170 175 175
2 Wood (4*5) 350 330 320 320
3 Nail 8 60 55 55 55
4 Nail 10 70 65 60 60
5 Nail 12 80 75 70 70
6 Roofing nail 90 85 80 80
7 Black wire 80 80 80 80
8 Eucalyptuses pole 10' 130 130 130 130
9 Eucalyptuses pole 8' 130 130 130 130
10 Eucalyptuses pole 6' 130 130 130 130
11 Eucalyptuses pole 12' 130 130 130 130
12 Rope 50 50 50 50
13 Cements 160 160 160 160
F. CONCLUSIONS AND RECOMMENDATIONS
General
• It is concluded that the local market in Babile for key non-food items (NFIs) for shelter repairing and Food items is well functional. All the key NFIs and food items are available and there are sufficient vendors, with enough supply, including the capacity to scale up and respond to increased demand.
• Provide multi-purpose cash transfers to meet basic non-food and food needs of IDPs in Babile alongside other shelter and WASH support. This would enable IDPs to prioritize their own needs according to their situation and also support local businesses who have been facing constraints due to increasing costs and reduced purchasing power over the last year.
• The market is favorable for the distribution of shelter NFIs and Food items through the modality of vouchers in the form of in-kind and cash.
• All the Vendors have experience in humanitarian response, including working with IOM and other NGO. • Distribution of NFI kits through Cash and in-kind voucher system in Babile is highly recommended,
justified and accepted by the Woreda stakeholders and actors. • Use ECWG MEB as a basis for the transfer value adapting the prices and items to the specifics of the
situation in Babile. Hence this will help to maintain the average amount of transfer value across the region.
• Conduct appropriate sensitization for beneficiaries on the purpose of cash transfers, what needs/duration the transfer is intended to cover and explanation of the distribution process. Provide a clear explanation of why females are prioritized to receive cash transfers.
• Work closely with woreda officials to ensure that vendors and wholesalers are aware of the cash distribution schedule in advance to give them the necessary time to prepare stocks and access supplies.
• Stagger cash distributions over days to ease the risk of COVID-19 and a sudden increase in demand in the market and to give vendors time to restock as needed.
Targeting
• Provide support to all IDPs in Babile – targeting in collective sites particularly is not feasible due to high needs and the proximity of households. Any targeting would provoke tensions and potential security risks for staff and beneficiaries.
• Conduct verification/registration exercise of all households identified as IDPs by woreda officials to collect accurate household information, produce beneficiary ID cards for future verification and to confirm households targeted are IDPs.
Monitoring
• Conduct market and price monitoring before, during and after cash distributions to check any variations in price and availability of priority items.
• Conduct post-distribution monitoring to verify receipt of cash transfer, and better understand utilization, expenditure patterns and priority needs for follow-up monthly assistance among beneficiaries.
Annex 1: Rapid Market Assessment– Vendor Questionnaire Region: ____________________ Zone: _______________Woreda:__________Kebele_______________ Site: ____________ Data Collector’s Name: ________________ Date of data collection: _____________
i. Demographic data A. Indicate the total number of interviewees’ ____________ Sex: # Female ______ # Male_______
ii. Interview Questions 1. What is the name of this marketplace? ________________________________ 2. What type of business are you involved in? Whole sale Retail 3. Approximately how many vendors own businesses in this market? ______________ 4. How well is this market connected to other markets? Very well connected Fairly well connected not connected 5. Which three main markets do you purchase the goods/commodities that you sell in this market? (name markets)
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6. Do you bring any goods/commodities from outside Ethiopia? Yes No If yes, specify countrie/s _______________________________________________ 7. How often do you re-stock your shop? (Select what is common) Once every week other, specify ____________________________ Once every 2 week Once a month Once every 2 months 8. If households were given money, could the vendors supply them with the key ES/NFI commodities (list them for the vendor) Yes No 9. What are the three main factors that make it difficult for vendors to continue their business during shocks? (explain shocks eg. Floods, drought, conflict etc.) i. _________________________________________________________________________________________ ii. __________________________________________________________________ iii. __________________________________________________________________ 10. How can the supply of the key ES/NFI commodities be supported to improve the current situation? ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ 11. If demand of the key ES/NFI commodities were to increase, how long would it take you to provide additional stocks to meet the increased demand? ( report in number of weeks) __________________________________________________________________ __________________________________________________________________ 12. Following the answer to question 11 above, from which markets would you get the additional ES/NFI? ___________________________________________________________________ 13. Would you use your existing suppliers to get the additional ES/NFI supplies? Yes No 14. What 3 main factors could make it difficult for you to increase your supply of the key ES/NFI commodities? i. ___________________________________________________________________ ii. ___________________________________________________________________ iii. ___________________________________________________________________ 15. How could the above factors be addressed? _____________________________________________________________________
_____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ 16. Do you have access to credit? e.g. from a bank or elsewhere? Yes No If yes, where do you borrow from? _________________________________________ 17. Do you hold a government business registration certificate? Yes No If not, specify ________________________________________________________ ____________________________________________________________________ 18. Is there any particular period when you increase commodity prices? Yes No If yes, when and why? ________________________________________ 19. When do you increase the commodity prices? (period or month)_______________ 20. Have you participated in a humanitarian response in the past? Yes No If yes, with which organization? __________________________________________________________ __________________________________________________________ 21. What type of response and what was your role or contribution to the project? ______________________________________________________________________ ______________________________________________________________________ 22. Are you willing to participate in a humanitarian response? Yes No 23. How flexible would you be if involved in a humanitarian response to meet project needs? Eg. Employing more workers or providing goods you do not normally sell? _____________________________________________________________________ _____________________________________________________________________ 24. Are traders in this marketplace able to supply the ES/NFI commodities in Sufficient quantities? Yes No If not, why? ____________________________________________________________ ______________________________________________________________________ 25. What main risks are IDPs most likely to experience if provided with money to purchase the ES/NFIs in the local market? ____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________