January 2020

RAPID MARKET ASSESSMENT REPORT Shebelle,

Abstract A Rapid Market Assessment (RMA) was conducted in Nov-Dec 2019 following extreme rain and subsequent flooding in Shebelle Zone of ’s Somali Region. The purpose of the assessment was to gauge market functionality and affected population needs. Findings may inform potential cash-based interventions RAPID(CBI) in the area. MARKET ASSESSMENT REPORT Shebelle, Somali Region

Rapid Market Assessment, Shebelle Zone

Background ...... 2 Objective of the Assessment ...... 2 Assessment Location and Methodology ...... 2 Methodology: ...... 3 Assessment Location: ...... 3 Results and Discussion ...... 3 IDPs Priority needs ...... 3 Previous CVA Experience in Shebelle zone ...... 5 Government Recommendation on CVA ...... 6 IDPs Assistance Modality Preference...... 6 Market Functionality and Accessibility ...... 6 Source of ES-NFI supply: ...... 6 Impact of the shock on Market: ...... 7 ES-NFI Availability: ...... 7 Traders Capacity: ...... 7 Price of ES-NFIs and Transfer Amount: ...... 8 IDPs Access to Market and CVA Related Risks: ...... 8 Availability Financial Service Providers (FSPs): ...... 9 Gender Analysis in relation to CVA ...... 10 Recommendations ...... 11 IDPs ES-NFI Need ...... 11 Response Modality: ...... 11 Transfer Value and Market Functionality: ...... 11 Risk mitigation Measures: ...... 11 Financial Service Providers: ...... 12 Annex-I Price of Non-Food Items (Standard ES-NFI kit) ...... 13 Annex-II Price of Shelter materials, dignity items, clothing and WASH NFI ...... 14 Annex-III Contact address of financial Service Providers (FSPs) in town ...... 15

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Background

Somali regional state has 11 zones, of which Afder, Liben and Shebelle zones are recurrently affected by seasonal flooding. This has resulted in interruption of livelihood activities, damage of shelter, and the displacement of thousands from their homes. According to the regional multi-agency flood assessment conducted in October 2019, 51,897 households (HHs) have been affected by flooding – with 27,753 HHs displaced in nearby zones since early October 2019. Affected zones included: Kalafo, , East-Imay, , Bercano, Abakorow, Gode and .

Following the October assessment, a second round of flooding occurred from 16-20 November 2019 – affecting an additional 5,391 HHs in East Emi (4,549 HHs) and Abakoro (842 HHs). On top of displacement and loss of life, affected communities suffered significant loss of assets such as livestock, crops, and shelters – with Mustahil and woredas appearing to be impacted the most.

At the time of assessment (25 November 2019), the Government of Ethiopia’s (GoE) Disaster Risk Management (DRM) Office in coordination with Shelter cluster partners had mobilized 15,900 Emergency Shelter and Non- Food Item (ES/NFI) kits (12,400 in-kind and 3,500 cash-based). Of these, 10,550 kits had reportedly been distributed and the remaining 5,350 were on process.

Additionally, the International Organization for Migration (IOM), the International Rescue Committee (IRC), Save the Children (SCI), Action Against Hunger (ACF), ADRA, and the UN Refugee Agency (UNHCR) were planning ES/NFI responses in the affected areas.

Humanitarian partners have been employing cash- and voucher-based assistance (CVA) in Shebelle zone since 2013. Interventions have focused on NFIs, nutrition, and Cash for Work.

Objective of the Assessment

The overall objective was to identify and assess woredas in Shebelle zone with market functionality in order to inform CVA feasibility for NFI interventions. The specific objectives of the assessment included: I. Identifying zones and woredas with potential market II. Assessing the impact of the flood on local markets where IDPs are located III. Assessing availability and average price of standard ES/NFIs in the main markets IV. Identifying IDPs’ and returnees’ preferred response modality and local political acceptance of CVA V. Assessing availability of potential financial service providers VI. Conducting gender analysis in relation to CVA VII. Recommending response modality and transfer value for ES/NFI in the location VIII. Assessing market accessibility for the affected communities

Assessment Location and Methodology

The assessment was conducted in Shebelle zone of Somali region over the period 25 November to 02 December 2019 by IOM with the support of zonal DRM authorities. The assessment team was composed of two IOM team members and two DRM officers. Actors including market participants, market representatives, DRMO staff, IDP committees and individual IDPs were engaged on the assessment to inform on the impact of the disaster and identify feasible responses in the affected areas.

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Methodology: The team conducted focus group discussion (FGDs) with IDPs and key informant interviews (KIIs) with local authorities and market actors such as whole sellers/retailers. This was complemented with market functionality observations. ➢ 8 FGDs were conducted with IDPs ➢ 6 KIIs were conducted with DRM staff ➢ 14 KIIs were conducted with local traders ➢ 3 market observation visits were carried out Assessment Location: In discussion with zonal Disaster Risk Management Coordination Office (DRMCO), the team identified 5 woredas from among the woredas affected by flood with access and availability of functional market. Accordingly, the assessment team covered Kelafo, Mustahil, Berano, Adadle and Gode woredas in Shebelle zone. Table 1: Markets assessed in Shebelle zone Zone Woreda Market Name Shebelle Kelafo Kelafo Market Mustahil Berano Gode Gode Market Adadle

Results and Discussion IDPs Priority needs Kelafo woreda

Kelafo is one of the woredas experiencing recurrent flooding as well as drought. According to the multi-sectoral assessment report, the current flood affected a total of 8,833 HHs of which 6,690 HHs displaced in 15 kebeles; and 60,113 drought affected people are targeted and supported under the PSNP program.

According to the woreda DRM, except few (around 5%) households who returned to their home, majority of them are living in IDP sites by sheltering in below standard makeshifts constructed by using old plastic sheets, clothing and local materials. During the assessment period, the team visited some of the accessible sites affected by flood and observed that shelters are partially and fully damaged. Some of the interviewed IDPs indicated as they require some weeks to return to their place of origin due to fear over reoccurrence of flood and for shelter rehabilitation if the rain stops.

Both men and women FGD participants indicated as food and ESNFIs mainly emergency shelter, kitchen sets and bedding items are among their priority needs. According to the IDPs apart from ES-NFI assistance, yet there is no food distribution conducted in the woreda.

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Shelters affected by flood in Kelafo woreda

Mustahil woreda

Mustahil town is fully flooded as a result residents are displaced and living in the newly constructed relocation sites by sharing shelter with the host community. During the assessment the team was unable to visit the town as the town is inaccessible due to flood. Currently there are 6,219 HHs displaced by flood and located in 12 kebeles of Mustahil woreda.

According to the zonal report, majority (90%) of the IDPs are sheltering in temporary makeshift shelters, however the remaining are living with host communities. For majority of the FGD participants shelter construction materials (corrugated iron sheet, nails and poles) and water supply are the priority needs they have, while ES-NFI and food has been provided following the displacement.

ES-NFI distribution by IOM in Mustahil woreda Berano Woreda

The multi-sectoral assessment report identified a total of 3,484 HHs affected by the flooding of which 2,151 HHs displaced in the woreda. In addition to the flood induced displacement, there were 280 existing households who have been displaced due to drought in 2017. Unlike in other woredas, majority (80%) of the drought IDPs are sharing shelter with the host community and not supported with ES-NFIs since the displacement. The interviewed IDPs indicated as there is no NFI assistance provided for majority of flood and drought IDPs apart from food which has been distributed by WFP/DRM. Hence both drought and flood IDPs indicated as ES-NFI is their priority need.

Adadle woreda

The woreda is affected less compared with others by the recent flood, only 338 HHs have been displaced from 8 kebels. Apart from the flood, the woreda is prone to drought and significant number of people have been displaced every year. Currently there are 37,462 drought affected PSNP beneficiaries in the woreda. During the assessment the team visited both drought and flood IDPs and NFIs is planned to be provided to all (338 HHs) flood IDPs in the woreda. However the interviewed drought IDPs were complaining as there was no NFI assistance apart from food provided by WFP.

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From among the visited woredas, ES-NFI need is higher in Kelafo, East-Imi, Mustahil and Berano woredas due to limited and delay of assistances by partners compared with the need. Detail information on the provided ES-NFI and gap is summarized in table- 2 below. Based on the identified ES-NFI gap, IOM targeted 1500 HHs with cash for NFI and in-kind Emergency Shelter (ES) in five kebeles of Kelafo woreda including Kelako town, Dariiqo, Allow Garsi, Washako and Burdheedi kebeles.

Table 2: Number of flood displaced HHs assisted by ES-NFI in Shbelle zone. Source Regional Shelter sub-cluster Woreda Total Number of HHs Ongoing ES- ES-NFI Partners Displaced HHs assisted by ES-NFI NFI Gap kit distribution Kelafo 6690 4350 2240 100 IOM, Save the Children, IRC and ADRA Mustahil 6219 3500 1310 1409 IOM, DRM and ADRA Ferfer 2100 500 500 1100 Save the Children East-Imi 4549 800 500 3249 Action Against Hunger and DRM Adadle 338 0 338 0 UNHCR Gode 547 0 462 85 UNHCR Berano 2151 1000 0 1151 Action Against Hunger Abakorow 842 400 0 442 DRM Total 23,436 10,550 5,350 7,536

Previous CVA Experience in Shebelle zone Shebelle zone is among the zones in Somali region where CVA has been largely used to deliver emergency assistances to both drought, flood as well as conflict affected households. According to zonal DRMCO, CVA has been started in the year 2011 with Cash for Work project in Kelafo and Mustahil woredas, followed by cash for food project in 2013 in seven woredas (Denan, Berano, Adale, Gode, Abakorow, East Emy and Mustahil woredas). In addition nutrition, shelter and NFI has been implemented using cash as response modality in the zone. Apart from Ferfer woreda, CVA has been implemented in the nine woredas (Kelafo, Denan, Berano, Adale, Gode, Abakorow, East Emy, Elele and Mustahil) of Shebelle zone. Table 3: Woredas with CVA experience in Sheblle zone (Source DRMCO) Woredas with previous Sectors Partners CVA Kelafo Cash for Food, Livelihood and NFI DRM/WFP, SCI and IOM Mustahil Cash for Work, Food and NFI DRM/WFP and SCI East-Imi Cash for Food and NFI DRM/WFP and IOM Adadle Cash for Nutrition, Food, Livelihood and DRMB/WFP, AAH, SCI and IOM NFI Gode Cash for Food and Nutrition DRMB/WFP and AAH Denan Cash for Food DRMB/WFP Berano Cash for Food DRMB/WFP Abakorow Cash for Food DRMB/WFP Elele Cash for Nutrition AAH

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Government Recommendation on CVA Based on previous CVA experience both woreda DRM, zonal administration, and DRMCO are in favour of Cash based NFI response in all woredas of the zone. However due to flooding some kebeles in Mustahil and Ferfer are inaccessible, hence the zone suggested in-kind assistance for such kebeles. Delay of inkind NFI supply and availability functional market are the major reasons for zonal authorities to consider cash as response modality. Zonal DRMCO suggested to conduct transparent targeting through the “From previous cash based responses, we have learnt that women who involvement of IDP representatives so as received the cash properly used the cash than men. Hence, providing the to minimize complaints and conduct cash to women would better address the needs of the households”. Zonal smooth response. In addition, registration DRMCO of women as cash recipient will increase the likelihood of the cash to be spent on the intended purpose as women know the needs of the household. IDPs Assistance Modality Preference IDPs participated on FGDs in all the woredas indicated as cash is their primary response modality preference followed by in-kind assistance. Using the cash for various needs, there are missing items in the kits (like mattress, bed sheet) which they require most and availability of items lically are the reasons for IDPs to select cash over in-kind assistance. Though majority of them mentioned as they use the cash to buy ES-NFI, clothing and shelter construction materials, however some of them mentioned as they will use it to buy “You can provide us some items that we require, but there are also items that food. In all the visited worerdas, both men we need most which we can get in the local market. So we prefer cash which and women group agreed on the we can use for anything that we urgently need”. A woman on FGD with IDPs consideration of women as cash recipient. in Kelafo

Market Functionality and Accessibility

Source of ES-NFI supply: Gode town serves as the central market for most of woredas in Shebelle zone with more than 10 wholesalers of NFIs with better capacity. 90% of the interviewed traders mentioned as they supply mostly from Addis Ababa and the remaining 10% mentioned as they supply NFIs from Jigjiga and Wechale (). Retailers in Berano town uses Gode and Jigjiga as main market, however all the interviewed retailers in Kelafo town mostly use via Doloboweyn corridor and Wechale (Somalia) as main markets while Gode serves them as an alternative market for supply of NFI. Wechale and Gode markets are the main source of supply for traders in Kelafo as a result of road blockade to Doloboweyn route following the recent flood. Residents of Mustahil and Kelafo woredas visits Kelafo market while residents of Adadle, Berano and Gode woredas visits Gode market to buy ES-NFIs. According to woreda DRM, Mustahil town used to have functional market with better NFI supply, however the assessment team observed that there is no functioning market as a result of the flood disaster which destructed the road, shop and warehouses in the town. According to the interviewed IDPs, cost of transportation is higher in Mustahil and Berano to visit nearby markets. In average the cost for one-way transportation from Mustahil to Kelafo with distance of 96 km is ETB 200 and from Berano to Gode which is 70 km is ETB150. Expenditure patterns follow those of NFIs and appear to be driven by seasonality. For instance, transportation cost increases by 50% to 100% during rainy season due to damage on the road and inaccessibility of the woredas. Therefore, this requires consideration while deciding transfer amount for any cash based programming.

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Fig. 1 ES-NFI Supply chain in Shebelle zone

Importers Whole Sellers in Wholesalers in Retailers in (Addis Ababa) IDPs/ Residents Addis Ababa Gode Gode of Gode, Adadle N=14 and Berano

Producers/ Factories Wholesaler in Jigjiga

Retailers in IDPs/ Importers from Kelafo; N=7 Residents of Wechale, Somalia

Retailers in IDPs/ Importers from Via Mustahil Mustahil Residents of Doloboweyn, Woreda Somalia N=NA Mustahil

Note: Primary Supply Route Supply chain fully interrupted Secondary Supply Route

Impact of the shock on Market: Due to the flooding in the area, main roads from Gode to Kelafo as well as Kelafo to Mustahil are partially damaged hence heavy trucks are unable to transport materials between the woredas. Hence supply has been decreased since early October through 1st December and heavy trucks started supplying items from 2nd of December 2019. Roads from Mustahil to Ferfer as well as Ferfer to Dolobeweyn are fully blocked and no access to Ferfer woreda and Doloboweyn. All of the interviewed suppliers in Kelafo responded as they relying on Gode market due to lack of access to Doloboweyn following the road blockade by flood. In addition to road blockade, the flood totally disrupted market in Mustahil town and decreased restocking frequency of supplies in Gode market as the number of retailers visiting the market has been decreased. Suppliers in Mustahil are anticipating that the market might resume to be functional within short period , since flood is receding. According to female FGD participants it will take one to two months for the market to resume. ES-NFI Availability: Gode and Kelafo markets are functioning properly and NFIs are available with the required quality especially in Gode. Though re-stocking frequency of NFI by traders in Kelafo decreased, there is still better supply in the stock of the visited suppliers. According to traders usually in the rainy season there is less cash flow coupled with the flooding disaster which has disrupted the livelihood of the residents and significantly decreased their purchasing power, as a result the restocking frequency of traders decreased by 75% since October 2019. Though plastic sheet is available in the visited markets, but the quality doesn’t meet the required standard recommended by Shelter Cluster. Industrial materials including corrugated iron sheet, poles and nails are available in quality and quantity only in Gode market, while there are only three suppliers of construction materials in Kelafo market. IDPs in Mustahil and Kelafo confirmed availability of NFIs in Kelafo market and as they travel to Gode market to get shelter construction materials. All the interviewed traders in Gode responded that ES-NFIs are available at the source including Addis Ababa, Jigjiga as well as Wachale markets. Traders Capacity: There are more than 10 wholesalers and 20 retailers of NFIs in Gode, and 11 retailers of NFIs in Kelafo market. Though there were several traders with good capacity in Mustahil, during the visit the team observed that none of them are supplying NFIs due to the damage on their items in stock as well as shop and warehouse by the disaster. 86% of the interviewed suppliers stock NFIs depending on season and demand of residents and the remaining 14% of suppliers stock based on their financial and warehouse capacity regardless of the demand. Compared with before the shock, restocking frequency by traders in both Gode and Kelafo decreased by 75% as a result of

7 Rapid Market Assessment, Shebelle Zone the disaster coupled with the season. Accordingly restocking period of 82% of the traders increased from one week to four weeks and it takes more than a month on the remaining 18% to restock NFIs. Majority (93%) of the traders are unable to restock frequently due to decrease of demand and the remaining 7% are due to financial capacity. 43% of the traders have access to loan from micro finance institution, 29% have no access due to collateral and the remaining 29% are not interested in credit due to lengthy of the loan process. All the traders supply materials both from the source with cash payment and there is no credit provided from the source. Compared with before the shock, the demand for credit from customers increased by more than 50% in Kelafo, however only 18% of traders in Kelafo and 23% in Gode providing credit to their reliable customers. All traders in Kelafo mentioned unavailability of transport as required and decrease on demand as the main challenge; while decreasing of demand mentioned as main challenge for traders in Gode. Price of ES-NFIs and Transfer Amount: According to traders in the main markets, the price of items increased since the beginning of Ethiopian new year by 15% to 20% and insignificant change on price have also been observed due to the shock. 42% of the traders anticipates as the price will decrease while the remaining 58% anticipates as the price will remain the same. In all the market traders are unable to anticipate changes on price of items in the national market. Based on the collected NFI market price, average price for standard ES-NFI kit (see Annex-1) is Etb 3,677 excluding plastic sheets due to quality and availability. Taking transportation cost to be incurred by IDPs and likelihood of price increment in to account, transfer value need to be adjustment by 3% to 5% for Adadle, Gode and Kelafo, however for Mustahil and Berano round trip transportation cost (which is Etb 400 for Mustahil and 300 for Berano) need to be included in the transfer value. IDPs Access to Market and CVA Related Risks: During the visit roads from Kelafo to Mustahil has been partially damaged, hence there is limited public transportation to the woredas. However, road from Gode to Kelafo has started functioning as usual since 2nd of December 2019.

All the interviewed IDPs in Kelafo and Mustahil responded that there is limited transportation which has increased the cost than the usual tariff. Apart from increment on transportation, “We give especial attention and support to elders and female headed there is no significant challenge for all households as they are vulnerable and need support. Both neighbors and relatives give them support by buying and transporting materials whenever community group to access nearby they need”. A man on FGD with IDPs in Mustahil markets including Kelafo and Gode markets. On all the discussions and KII there was no anticipated cash associated risk mentioned by the IDPs and government representatives.

Table 4: Summery Response Modality Preference by IDPs and Modality Recommendation by DRM staff. Government Market Recommended Woreda IDPs Preference Recommendatio Response n Functionality Market Location Modality

Berano Cash and in kind Cash and in kind Functional Gode Cash and in-kind (70 km to Berano) Gode Cash and in kind Cash and in kind Functional Gode town Cash and in-kind Mustahil Cash and in kind Cash and in kind Not Kelafo In-kind functional (96 km to Mustahil) Kelafo Cash and in kind Cash and in kind Functional Kelafo town Cash and in-kind Adadle Cash Cash and in kind Functional Gode Cash and in-kind (20 km to Adadle)

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Availability Financial Service Providers (FSPs): Apart from Somali Micro Finance Institution (SMFI) agents and Ethiopian Postal Service (EPS) agents, the woredas like Mustahil, Ferfer, Adadle and Berano doesn’t have banks. SMFI has agents in the woredas providing financial services through HelloCash. Except the agents in Mustahil woreda; agents in Berano, Kelafo, Adadle and Gode are providing services to their customers. Most banks have branches in Gode town and only Commercial Bank of Ethiopia has branch in Kelafo town. Majority of the interviewed IDPs in Kelafo, Berano, Adadle and Mustrahil doesn’t have bank account and near to 35% of them uses HelloCash to transfer small amount of money and to buy airtime for calls.

Table 5: List of FSPs available in Woredas of Sheblle zone. Woreda Available FSPs Gode - Commercial Bank of Ethiopia - Abyssinia Bank - Somali Micro Finance Institution - Ethiopian Postal Service - Rays Microfinance - Wegagen Bank - Dashen Bank - Cooperative Bank of Oromia - Buna Bank - Oromia International Bank - Awash Bank - Commercial Bank of Ethiopia - Ethiopian Postal Service - Somali micro Finance Institution - HelloCash Agents Berano - HelloCash Agents

Mustahil - HelloCash Agents (currently not providing service) Ferfer - HelloCash Agents Adadle - HelloCash Agents

Table 6: Financial service providers mapping, Somali region (Source: FSP Capacity Assessment Report Somali Region May 2019): Service costs Coverage in the Previous cash Response HH (fixed, Security Name cash feasible distribution capacity per requirem transaction, measures areas experience days ents others) 1. Somali 100% through Providing cash 400 to 600 5.5% ID or Insurance Micro branches and by distribution services per day Coupon Cash safe box deploying staff to partners in Somali Escorting Finance Institution 2. Commercia 19% (27 branch in No previous related 200 to 300 To be ID Insurance l Bank of 18 woredas out of experience in Somali per day determined Escorting 93 woredas in the through Ethiopia region) official request1 3. Oromia 3% (3 branches Provided cash Can’t be 0% of service ID or Escorting Internation out of the 93 distribution services fixed as it charge if the Coupon woredas in the twice with NRC & IRC depends on organization al Bank region) Fafan and Siti zone of number of agree to Somali region staffs to be open foreign engaged currency and account

1 CBE has centralized system and require official request including amount, location and project detail to provide service charge

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beneficiarie s

4. Awash 3% (3 branches Provided cash 300 to 400 0% of service ID or Escorting Bank out of the 93 distribution twice per day charge if the Coupon woredas in the with SCI & AAH in organization region) Degahbur, Shabelle agree to and Korehe of Somali open foreign region currency account 5. Ethiopian 4% (4 branches No related 200 to 300 50 Etb per ID or Uses banks for Postal out of the 93 experience in Somali per day transaction coupon cash storage woredas in the region, but providing Holding small Service region) cash in other regions amount of cash 6. Nib bank 3% (4 branches No previous related 150 to 200 0% of service ID Insurance out of the 93 experience in Somali per day charge if the Escorting woredas in the organization region) agree to open foreign currency account 7. Rays 3% (4 branches No previous related 150 to 200 5.5% ID or Insurance out of the 93 experience in Somali per day coupon Escorting woredas in the region)

Considering geographical coverage, flexibility, human power, previous experience as well as security measures for cash distribution, SMFI is the better FSP in Somali region. On the other hand, CBE has good capacity in terms of geographic coverage, financial capacity and human resource compared with banks operating in the region. However, geographic coverage of other FSPs including private banks is limited in Fanfan zone and the regional town. As a result, it will be challenging for the FSPs to travel with significant amount of cash and conduct payments in distant woredas like Gashamo, Aware, Garbo, Sagag, Salahad, Mustahil, East-imi-, Boh, Danod, Goora-baqaqsa, Guradhamole, Bare, Dolobay, Mubarak and Hudet which are located at more than 500 km from Jigjiga and could take an average of 2 to 5 travel days. Furthermore, it is mandatory for banks to do online reconciliation of all payments and return of remaining cash to bank on daily basis. This could only be feasible for woredas in and close to Fanfan zone, but in other woredas it will not be possible to conduct payments by travelling from Fanfan zone throughout the distribution period2.

Gender Analysis in relation to CVA IDPs suggested women to be registered and collect the cash as they are responsible for buying household items including kitchen sets, bedding items and clothing for the children. The IDPs indicated as there is shared decision making process on the use of cash in the household, both woman and man share ideas on priority needs of the households and decide based on what both agreed. However young children doesn’t have decision making role apart from mentioning what they need. As the months from October to December is farming season most men are fully engage on agricultural activities while women provided the responsibility to visit market to buy the required materials for the household and conduct domestic activities including child care.

2 Financial Service Providers Capacity Assessment Report, May 2019 Somali Region

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FGD participants indicated as there was no risk associated with cash on any of the community group on previous distributions and they are not facing any protection risk associated with cash handling, travelling to market and buying items after the shock. From among the woredas with previous cash based assistance women have been registered as recipients and provided cash on behalf of the households in Kelafo, Mustahil and Adadle. The woredas selection of women over men was for the reasons that women better knows the needs of the family, relatively good cash management and men are occupied with farming as well as labor works which makes verification challenging especially during house visit for beneficiary verification.

Recommendations IDPs ES-NFI Need - Partners are targeting only flood affected HHs in the zone though there are drought affected HHs who did not receive assistances. Hence IDPs in Berano and Adadle woredas need to be targeted and provided ES- NFIs. - Priority needs to be given to East-Imi, Mustahil and Berano woredas where the need is still higher compared with the response.

Response Modality: - Based on the previous experience, IDPs preference as well as market, cash based NFI response is feasible in Gode, Adadle, Berano and Kelafo woredas. Currently cash is not feasible in for Mustahil and Ferfer woredas. However, cash can be feasible in Mustahil if either access to public transportation improves or the local market started functioning. Therefore, partners planning to implement in Mustahil expected to verify availability of public transportation or market functionality in Mustahil town. - Cash can be considered for shelter construction materials only in Gode woreda as there are limited shelter construction material suppliers in other woredas. - Using voucher for shelter construction materials distribution in Adadle, Berano and Kelafo woredas. - Conducting response analysis before CVA implementation to verify whether cash as response modality is feasible since markets, security and risks could change overtime. - Distributing plastic sheet in-kind, since the available plastic sheets are with poor quality in all the markets. Transfer Value and Market Functionality: - Transfer amounts should always cover the cost of the standard NFIs defined by the cluster unless the market changed due to unanticipated reasons. It is less likely to achieve program objective and reduce vulnerability and negative coping mechanisms of the disaster affected community if the transfer amount doesn’t consider the actual market price. - Transfer value for NFIs recommended to be Etb 3,677 combined with 2 pieces of plastic sheets in-kind. The transfer amount can be used in Adadle, Gode and Kelafo, however the amount need to be adjusted by Etb 400 for cash implementation in Mustahil and Berano woredas and Etb 300 for Berano. - Using harmonized transfer value for ES-NFI responses in the region unless there are items from the standard NFI kit to be distributed in kind. - Contracting suppliers in Gode town for voucher based shelter construction material assistance so as to get the required quantity and quality with competitive price. - Considering Gode and Kelafo markets as reference for amendment of transfer value and supply availability analysis. Risk mitigation Measures: - Registering and providing the cash to women as suggested by IDPs, woredas and zonal DRM. In order to avoid tension between community groups response team needs to be flexible and register men whenever required. - Conducting risk analysis and vulnerability assessment during response analysis to minimize risk associated with access to market, distribution sites and availability of NFI in the market.

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- Selecting distribution sites in consultation with concerned community groups and sites should be appropriate and accessible by all including women, elderly and PWD. - Consulting women on distribution time so as to make it convenient with their usual activities. Distributions should be conducted in the working hours/day time, and avoiding any distribution in the evening which can expose beneficiaries to risk of theft and violence. - Sharing detail information on the purpose or objective of the cash before and during distribution.

Financial Service Providers: - SMFI is the only FSP with better coverage, experience of CVA, capacity as well as flexibility to travel to all the woredas by holding the required amount of cash. Except Commercial Bank with branch in Kelafo, all the other banks have only branch in Gode town. - Further assessment is required to explore more on the services provided by SMFI/HelloCash and accessibility by majority of the population in the zone. This also requires assessment on number of people with cell phone, skills required to use the technology, support required to minimize associated risks and cost analysis.

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Annex-I Price of Non-Food Items (Standard ES-NFI kit)

Quantity Average Gode Market Kelafo Market Per kit price /kit Description of Items Price of Items; Retailer (R) R-1 R-2 R-3 R-1 R-2 Aluminum Basin 15 L 250 255 250 300 320 1 275 Aluminum kettle, 2-2.5 l 220 230 200 230 250 1 226 Aluminum cups, 350 ml 25 25 30 25 25 3 78 Aluminum cooking pot 5-7l 310 320 320 330 350 1 326 Aluminum ladle, medium 30 35 40 30 40 1 35 Aluminum Plates 35 35 40 40 43 3 115.8 10 Liter Jerry cans Plastic 75 80 80 80 85 2 160 20 Liter Jerry can Plastic 130 125 135 135 135 1 132 Plastic Sheet/s, 4X5 m 380 400 500 420 NA 2 850 Rope/s, 5mm 40 40 45 40 40 1 41 Sleeping Mats, 2X4 330 350 360 350 350 1 348 Mosquito Nets 420 430 430 440 450 2 868 Blankets, 1.5X2m 460 450 450 460 455 2 910 Hassian Bag 100 kg 12 12 13 12 13 1 12.4 Laundry Soap (bar), 250 gm 15 15 15 15 15 10 150 Comments and observations: - Average ES-NFI price is 4,527 Including cost of plastic sheet - Average ES-NFI price is 3,677 without cost of plastic sheet - The available plastic sheet is with poor quality in all the markets

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Annex-II Price of Shelter materials, dignity items, clothing and WASH NFI Gode Market Kelafo Shelter Materials Price of Items R- 1 R-2 R-3 R-1 R-2 CIS (Corrugated Iron Sheet) 32 GJ (pieces) 215 220 250 227 225 CIS (Corrugated Iron Sheet) 34 GJ (pieces) 143 140 155 147 145 Timber (8*10 cm) (pieces) 195 185 200 220 NA Equeliptus pole (6 m) (pieces) 120 120 140 132 128 Equeliptus pole (8 m) (pieces) 150 155 170 160 160 Nail (8 cm) (kg) 80 83 95 90 93 Roofing Nail (kg) 100 98 110 105 100 Adult male shirt (pieces) 200 220 230 210 230 Adult male trouser (pieces) 280 250 290 280 290 Adult Male underwear (pieces) 53 50 60 60 55 Adult male pair of shoes (pair) 400 380 420 400 410 Adult female dress (pieces) 350 330 350 380 400 Adult female underwear (pieces) 45 50 60 55 55 Adult female pair of shoes (pair) 220 250 260 310 320 Girls Dress (pieces) 380 330 350 400 420 Boys trouser (pieces) 270 250 260 280 300 Girl/Boys Shoes (pair) 180 200 190 220 210 Boys Underwear (pieces) 50 45 40 55 60 Infant cloth 3 piece set 230 250 260 300 290 Shirit (local cloth commonly used by men) 230 200 250 240 250 Sanitary Pad 50 45 60 60 NA Glycerin 40 40 50 45 50 Body Soap, 100gm 20 20 30 20 20 Whistle (Metalic) 50 NA NA NA 50 Sheety for female 130 125 140 135 130 Scarf 150 130 125 145 150 Hand Torch 55 80 60 70 60 Bucket of 20l 105 115 130 120 120 Bucket of 10l 85 93 105 100 95

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Annex-III Contact address of financial Service Providers (FSPs) in Gode town

Name of FSP Location Contact address - Commercial Bank of Ethiopia Office: 0257761644 - Oromia International bank Office: 0257761040 - Awash bank Office: 0257761691 - Cooperative Bank of Oromia Office: 0257761861 - Dashen bank Office: 0257761876 - Wegagen Bank Gode Office: 025 7761541 - Ethiopian Postal Service Office: 0913244179 - Abyssinia Bank Office: 0257762214 - Buna Bank Office: 0257761882 - Anbessa Bank Office: 0257761674

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