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Market and Cash Feasibility Assessment Gedeo/West Guji Zone

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Market and Cash Feasibility Assessment Gedeo/West Guji Zone Shelter Materials and Services Market and Cash Feasibility Assessment Gedeo/West Guji Zone Results and Response Recommendation Report (4R) Background After two significant conflict incidents, almost 1 million people were displaced between Gedeo and Guji Zones, with vastly diverse urgent and humanitarian needs, and in different states of displacement, with some returning to their place of origin, some relocating and some staying in collective centers and host communities. The Ethiopia Shelter Cluster, with support from the Global Shelter Cluster, organized and carried out a Market and Cash Feasibility Assessment in response to displaced populations of Gedeo and West Guji Zones during the months of August and September. The key analytical question for the assessment to answer was: What is the market functionality and feasibility for cash-based interventions for key shelter materials and services in the Gedeo and West Guji Zones? The assessment team gathered information on: (i) the materials and services value chains relevant to shelter; (ii) the environmental impact of these value chains, (iii) basic IDP shelter needs; and (iv) price data for shelter materials and services. The results of the assessment inform: 1. A response analysis regarding the feasibility and appropriateness of an environmentally friendly, low risk, market-based response for shelter in the Gedeo and West Guji; 2. The development of a proposed methodology for the implementation of cash programming in shelter responses for forced displaced and returning populations of Gedeo and West Guji Zones; The Shelter Cluster assessment did not: (i) assess IDP/Returnee needs in depth, (ii) provide a detailed mapping of financial service providers and their capacity to deliver cash assistance. Methodology The assessment team was made up of 8 field officers1, 1 logistical coordinator and 2 technical leads. The tools developed for this assessment reflect lessons learned from Cash Champion deployments in other contexts. They also take into consideration the strengths of the various global market assessment tools currently in use, such as RAM, EMMA and the 48-hour tool, as well as tools developed by partners based in Ethiopia (e.g. DRC, IOM). 1 Field Officers were seconded to the Shelter Cluster from IOM, CRS, NRC, CARE, GOAL, UNHCR, and World Vision. Cash Feasibility for Shelter Programs Ethiopia has experience implementing cash programs throughout the country, including in response to the West Guji and Gedeo displacements. For this reason, the focus of the cash feasibility portion of the assessment was not directed at gauging the practicality or potential to implement a cash program in the target region; but rather to measure the appropriateness of using a cash-based intervention within the overall design of a shelter response to the returnee populations of Gedeo and West Guji. Market Functionality for Shelter Programs Several market assessments were carried out by shelter cluster partners in the target areas. This assessment differentiated in its purpose, focusing its analysis on the capacity of the target markets to meet the demand for specific shelter materials. Two value chains were originally planned to be assessed: (i) skilled and unskilled labor markets, and (ii) local wood products (eucalyptus). While carrying out the assessment, the technical leads modified the data collection so as to also include the Corrugated Galvanized Iron (CGI) sheet value chain. Table 1 gives a summary of the assessment tools. Assessment Tool Respondent Purpose: To understand…. Sampling Key Woreda 13 Summaries IDP situation and needs Informant Administrators, Shelter materials and services: profile, availability Interview Vendors, IDPs, Market Functionality Emergency Preferred assistance and delivery mechanism Operations Center Environmental Considerations Coordinators, etc. IDP Survey IDPs and Returnees 107 Surveys Availability, accessibility, quality of Materials and Services Environmental Considerations Livelihood and Assets Context Transport and Labor Mapping IDP/Returnee Needs and Vulnerability Understand challenges and risks anticipated in shelter construction Focus Group IDPs and Returnees 7 Summaries Cross-check with results from other questionnaires Discussion Same purpose as IDP survey Market Transect Walk as 7 Summaries Market access, functionality, profile Observation Price Data is Availability, accessibility, quality of Materials and Services Questionnaire Collected Changes in Market since conflict Vendor Small, medium and 41 Surveys Market profile Questionnaire large vendors selling Availability, accessibility, quality of Materials eucalyptus poles, Environmental Considerations timber, small and Transport and Labor Mapping large manufactured Resilience of vendors items used for Willingness to collaborate construction Gov’t Regulations affecting trade Laborer Skilled and Unskilled 23 Surveys Labor profile and mapping Questionnaire laborers Availability, accessibility, quality of Services Environmental Impact Resilience of laborers Willingness to collaborate Gov’t Regulations affecting labor Price Vendors, 5 Summaries Prices and trends of shelter materials collection - Transporters and Materials Laborers Selection of Market Locations for Assessment Market locations were selected based on DTM analysis of target population’s place of origin cross-checked with information from local authorities and partners. According to the DTM, the woredas of origin of the largest number of displaced groups are, in order of importance: Kercha, Hambela Wamena, Galana, Bore, Yirgachefe, Birbirsa Kojowa. Table 2 gives a summary of the markets in the region. # Region Name Woreda Market Type Assessment Update Priority Woreda Markets 1 West Guji Kercha Woreda Assessed – Diversified 2 West Guji Hambela Wamena Woreda Not Assessed – Inaccessible 3 West Guji Galana – Tore Woreda Assessed – Limited Town 4 Guji Bore Woreda Not Assessed – Out of Scope 5 Gedeo Yirgachefe Woreda Assessed – Diversified 6 West Guji Birbirsa Kojowa Woreda Not Assessed – Road Blocked Secondary/Supportive Woreda/Zonal Markets 1 Gedeo Dilla Zonal - Primary Assessed – Primary Zonal Market 2 West Guji Bulé Hora Zonal Assessed – Highly Diversified 3 Gedeo Gedeb Woreda Assessed – Diversified 4 Gedeo Kochere Woreda Assessed - Limited The assessment team was blocked from reaching Birbirsa Kojowa. Road conditions due to weather prevented the assessment team to access Hambela Wamena. Limitations The assessment results are based off of surveys, FGD, and KII, which provided insight into the context and used to identify trends to feed into proposed actions and recommendation. The data gathered and reported on below is not representative of the target population. Results The assessment results are summarized and presented in bullet form for the purposes of focusing reader’s attention on the prioritized information, meanwhile saving space and time with excessive narrative. The Shelter Cluster assessment team is available until October 15th, 20182 to respond to any questions and expansion of detail on results on request of readers. Reach out to [email protected] with copy to [email protected] for further information. 2 Date was defined as one month from end of deployment and based off of constant and fast changing contexts in the West Guji/Gedeo zones. This report summary is mostly relevant during this time period. Cash feasibility Standard considerations in the feasibility assessment of cash transfer programs includes nine factors.3 Of those nine, only six factors were relevant to this assessment and the Gedeo/West Guji conflict induced displacement. General Cash Feasibility considerations For West Guji and Gedeo zones: o Beneficiary Preference and Needs: . IDP/Returnee identified diverse needs that are not being met by in-kind assistance Preference for cash and immediate assistance Perception that materials/services are readily available in market. Shelter was reported as a priority need in the survey and FGD results. o Market . Market is frequently visited and accessible by the target community. Yirgachefe and Dilla are the main markets for Gedeo. Kochere (Gedeo) and Yirgachefe (Gedeo) communities traditionally travel to Yirgachefe on market days. Galana (West Guji) communities typically travel to Yirgachefe on market days. Kercha (West Guji) communities traditionally travel to Kercha Town on market days. Bule Hora (West Guji) is the main market in West Guji zone. No significant challenges in accessing the local market reported by target population. Cost of transport was identified as a limitation for some responders. More info on Market presented in Market Functionality section. o Financial Infrastructure and Capacity . Yirgachefe (Gedeo) has more than eight (counted) financial service providers. Only one FSP (CBE) was identified in Kochere (Gedeo). Dilla (Gedeo) has numerous FSPs and is the main Zonal market for the region. Galana (West Guji) only had Oromia Savings and Credit and a branch of CBE that was closed at the time and whose operational hours are not defined. Kercha (West Guji) had several FSPs including Oromia International Bank, which has past experience implementing cash programs in the region. Bule Hora (West Guji) has numerous FSPs and is a Zonal market. Families that don’t have access to identification, can obtain a letter of reference from their Woreda Administration and Kebele leaders to meet documentation requirements for cash transfer. There is mention that a fee is
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