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REACH SOM Dashboard Cash Working Group May 2020 V4.Indd

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REACH SOM Dashboard Cash Working Group May 2020 V4.Indd May 2020 SOMALIA CASH AND MARKETS QUARTERLY DASHBOARD - MONTHLY UPDATE Produced on 12 June 2020 INTRODUCTION IMPORTANT NOTICE RECOMMENDED TRANSFER VALUES (USD) SUPPLY CHAINS2 Cash-based interventions have been used by humanitarian Given the challenges COVID-19 poses to vulnerable Region Multi-purpose Food • The first half of May was marked by continuing heavy Gu organisations in Somalia since 20031. Initially, significant households, the CWG recommends that partners only rains,3 further damaging critical transport infrastructure, Awdal 95 90 variations in transfer values were implemented by different implement transfer value changes where the MEB value has blocking supply corridors from main markets to remote organisations, occasionally leading to different transfer increased; but not where MEB values have decreased. The Bakool 85* 80* areas in several regions across the country. values in the same locations. It was against this backdrop, CWG is working with partners engaged in price and market Banaadir 70 60 • As the rains subsided in the second half of the month, Bari 85 85 and as a response to the increasing number of agencies monitoring to analyse the impact of COVID-19 on markets, transport services resumed in most regions. using cash-based interventions to respond to the 2016-2017 and release monthly guidance on transfer values. The CWG Bay 60* 40* • The opening of the border with Ethiopia is negotiated drought, that the Somalia Cash Working Group (CWG) also recommends that in project planning, partners discuss Galgaduud 110 100 started convening in February 2017. The aim of the CWG is with donors and build in flexibility to rapidly adjust modality, regionally. A partial opening facilitated livestock exports Gedo 85 75 to streamline the design, development, and implementation of mechanism and transfer value if necessary in response to from Somaliland, while trade limited to particular days of cash-based interventions in Somalia. changing market circumstances. Hiraan 65 60 ▲ the week was established in Jubaland. Trade with Ethiopia Lower Juba 90 85 is starting to normalize in Puntland and Hirshabelle. Pursuant to these aims, the CWG provides quarterly transfer Lower Shabelle 60 50 ▲ value recommendations, based on Somalia's standard minimum ▲ increase in recommended transfer value • The border between Kenya and Jubaland remained closed. Middle Juba 70 ▲ 60 ▲ expenditure basket (MEB), to humanitarian organisations ▼ decrease in recommended transfer value* • Port activity in Bossaso was reported to be normal, with an implementing cash-based interventions in Somalia. Due to ● monitored markets Middle Shabelle 80 65 increase in livestock export to Gulf countries. The supply anticipated disruption to supply chain as a result of COVID-19, Mudug 80 75 corridor linking to other cities in Somalia was interrupted the CWG is providing a monthly update. Nugaal 95 60 in early May. This dashboard presents the CWG's transfer value Sanaag 105* 70 • Port activity in Kismayo has been reportedly lower for two recommendations for populations classified in the Integrated Sool 95 70 months, but with no restrictions to its operations. Fewer Food Security Phase Classification (IPC) phases 3 ('acute') Togdheer 90 75 activities can be linked to a global drop in the number and 4 ('emergency'), in addition to an overview of market W. Galbeed 95 80 of sea vessels operating, and has led to reduced labour performance for the period of May 2020. The primary data opportunities in Kismayo. sources used are datasets and briefs from the Food Security • Activities in Berbera port were reported to be normal. and Nutrition Analysis Unit (FSNAU), which provides price * the recommended values would have been lower in Bakool, Supply corridors to Sool and Sanaag regions that had been data, and the World Food Programme (WFP), which provides Bay, and Sanaag, where MEB values have decreased (see compromised by the rain became accessible in the second supply chain and port data. Data from other CWG partners is below). However, considering the challenges posed by half of the month. used on an as-available basis. COVID-19, the CWG recommends that partners only implement transfer value changes where the MEB value has increased. • Fuel prices continued to decrease throughout the country. KEY DEVELOPMENTS • Continued decline of remittances was reported, likely to • Gu rains have ceased by the third week of May, leading to KEY VALUE CHANGES (USD) have an effect on the purchasing power of households who depend on remittances. reopening of key supply routes. While ground transportation Region Type of Current Previous have resumed, farms still need to recover before the transfer value value • Preliminary reports from early June suggest that scarcity availability of fresh produce returns to normal levels. Bakool Multi 75* ▼ 85 of fruits and vegetables, due to the negative effect of the heavy Gu rains in farms might continue to drive prices up • The price of the full MEB increased in 14 of the 18 districts. Bakool Food 65* ▼ 80 Exceptions include Banaadir, one of the most stable in most regions of the country. Considering many of those Bay Multi 50* ▼ 60 markets in the country, and the Sool and Sanaag districts food items are usually the most financially accessible where access from Berbera has been recently improved Bay Food 35* ▼ 40 items, close monitoring of prices and supply chains is and are able to receive a good supply of imported and local Hiraan Food 60 ▲ 55 recommended. commodities. Lower Shabelle Food 50 ▲ 40 • Terrestrial borders with Ethiopia are gradually reopening, Middle Juba Multi 70 ▲ 60 while borders with Kenya remained closed. While the main Middle Juba Food 60 ▲ 45 sea ports remained operational, lower activity has been Sanaag Multi 95* ▼ 105 reported in Kismayo. SOMALIA 1 SOMALIA CASH AND MARKETS QUARTERLY DASHBOARD - MONTHLY UPDATE May 2020 METHODOLOGY FULL MEB FOR THE MONTH (USD)4 PORT DATA6 Region Mar 2020 Apr 2020 May 2020 The total food imports for Bossaso (see below) in the three The MEB represents the minimum culturally adjusted set of correspond to 100% of the food MEB, while the multi-purpose Awdal 120 112 118 recent months varied considerably. In March, food imports basic food items (comprising 2,100 kilocalories per person per transfer value recommendations should correspond to 80% were slightly above the 5 years average but far below the Bakool 80 90 92 day of basic energy) and non-food items (NFIs) required to of the full MEB, both rounded to the nearest 5 USD to ease same month in the previous year. This could be related to the support an average Somalian household of 6-7 members for implementation at the field level. Banaadir 95 93 91 unusually high February imports, but also the effect COVID-19 one month. The CWG also determined that transfer value recommendations Bari 104 109 111 has had on international trade. April was again well above the 5 The CWG uses FSNAU's MEB values as the basis for should remain fixed for three months at a time, and should only Bay 60 65 65 year trend, to the same levels as 2019. May was the first month determining transfer value recommendations. These be subject to change if the value of either the full or the food Galgaduud 127 138 140 of 2020 below the 5 year average, potentially due to a lower recommendations focus on the needs of populations in IPC MEB in any particular region changes by more than 10%. Gedo 98 98 106 capacity to distribute imports caused by the heavy Gu rains. 3 and IPC 4. This dashboard considers the transfer value recommendations Hiraan 80 89 90 As per the decision of the CWG, transfer values should be from May 2020 and compares them to the full and food MEB Lower Juba 105 115 120 Figure 1. Bossaso total food imports (metric tonnes per month) based on urban MEB rates only. This is because: values from April 2020. In accordance with the methodology Lower Shabelle 68 73 76 above, only when a 10% change in either value is observed 50,000 • Rural MEB rates are not available for all regions; Middle Juba 70 76 86 will the recommended transfer value change. • In some regions, large differences between the rural and Middle Shabelle 87 97 98 On this account, in regions where more than a 10% change 40,000 urban rates have been difficult for partners to explain; Mudug 88 99 97 in either the food or full MEB was recorded, an updated Nugaal 109 116 120 • The thresholds of 'rural' and 'urban' are not always clear recommendation is provided in the 'Recommended Transfer 30,000 to partners, which would open the possibility that different Values' table. Note that the previous recommendations are Sanaag 134 125 118 transfer values may be applied in the same location. provided only for comparative purposes and should not be Sool 123 128 121 20,000 Further, the food transfer value recommendations should applied in implementation. Togdheer 113 116 117 (MT) tonnes Metric W. Galbeed 119 121 122 10,000 CHANGES TO THE COST OF THE FULL MEB OVER TIME5 MAIN CHANGES 0 Region Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Similarly to April, the majority of districts had a higher full Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Awdal -3% +4% +2% +10% +3% -8% -1% MEB cost in May when compared to two months prior. The 5-year average (2015-2019) 2019 2020 main causes for the price increase are likely the same from Bakool +2% -2% -21% -20% -6% +9% +15% the previous month, including deteriorating roads condition Banaadir +4% +1% -2% -2% 0% -2% -4% and seasonality (agriculture lean season). While rains have ASSESSMENT COVERAGE Bari -1% 0% +1% +1% +1% +7% +7% subsided in the second half of the month and transport services Bay -2% +1% -14% -17% -3% +8% +9% resumed in most regions, local produce continue to be scarce.
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