Cash for NFI and shelter feasibility study April 2019 A study of the feasibility to use cash in the Noun and Menua departments of the Western Region of Cameroon for displaced persons. By Emanuel Souvairan 1 Contents Summary ................................................................................................. 3 Methodology .......................................................................................... 5 NFI markets ............................................................................................. 9 NFI market price and stock data ........................................................... 14 Rental markets ...................................................................................... 21 Rental Market Summary ....................................................................... 22 Rental market analysis .......................................................................... 23 Host family arrangements ..................................................................... 36 Livelihoods and inclusion ...................................................................... 38 Preferences on the use of cash as a modality ....................................... 40 Transfer mechanism ............................................................................. 43 Annex 1: Enumeration team debriefing notes ...................................... 46 Annex 2: Risks analysis and mitigation matrix....................................... 52 Annex 3: Recommendations for Cameroon Red Cross .......................... 53 2 Summary Introduction Since late 2016, protests and violence in Cameroon South-West and North-West regions (Anglophone Cameroon) has caused significant internal displacement and refugee flows into Nigeria. Government restrictions and civilian-targeted attacks by various armed actors has limited nearly all humanitarian access in these two regions. The Western region of Cameroon has received a high number of displaced persons arriving from the South-West and North-West regions with few humanitarian actors present in this region. In the Western region displaced persons are residing with host communities, in either rental arrangements or host- family arrangements, both in urban and rural areas. The majority have travelled with few possessions, many have lost or have damaged identification documents, do not speak the local languages (or French) and are struggling to make ends meet. To assess the feasibility of undertaking using cash as a modality for shelter and NFI assistance for displaced persons in the Western region of Cameroon a feasibility study was conducted by the Cameroon Red Cross with support from the Luxembourg Red Cross from the 13th and 21st of March 2019. The study was conducted in both the Menua and Noun departments of the Western region of Cameroon and focused on markets for NFI’s, for rent (including hosting arrangements), preferences in terms of the use of modality, and the availability and suitability of certain financial service providers. Additional analysis was conducted specifically for Red Cross programming in the annexes to this report. This additional analysis focused on the utilization of cash as a modality in combination with other modalities, transfer value calculation, a risk analysis and specific Source: OCHA Cameroon: North-West and South- recommendations on programmatic approaches, such West. Situation Report No. 05. April 15 2019 as for targeting. 3 Key Findings Below are some of the key findings from the feasibility study: Education is the number one spending priority should displaced persons have additional cash. This is closely followed by food as the second highest priority. The third priority is improved housing, followed by investing in livelihoods, health also features. There were very few mentions of NFI’s as a priority. Cash would be the most suitable assistance modality as markets are generally functioning well and displaced persons can access services (although it was not defined to what extent). Cash is frequently mentioned as the most prohibitive factor for accessing goods and services. From the perspective of the displaced, multipurpose cash would be most suitable for this context, as people need cash to cover a broad range of basic needs, many of which are essential to their fundamental rights and protection. The risks of not meeting basic needs by not giving multipurpose cash are very high. If we give other forms of assistance and do not give multipurpose cash, critical needs may not be met, such as lifesaving healthcare. It is unlikely that the majority of an unrestricted and unconditional cash grant would be used for rent and/or NFI’s, even if ‘labelled’ and accompanied by dissemination work. However, a significant amount will be spent on these items (improved housing is listed as the third highest spending priority), as they constitute key components of the expenditure basket although it is not possible to predict the amounts. As many are trying to invest in commercial activities, an up-front lump sum would help to start those activities and increase incomes, thus covering basic needs. Therefore a livelihoods component to the cash grant may be suitable depending on programmatic goals. This is listed as the fourth highest priority should displaced persons have additional cash. Any form of cash assistance would need additional support services, such as for advocacy on rental rights, contracting, access to services, and prompt access to identity documentation. Certain key listed NFI’s are not available in the market. These are mosquito nets, plastic sheeting and to a lesser extent Jerry Cans (20L). Depending on programmatic goals, and if these are deemed essential, they may have to be distributed. Close cooperation and advocacy with the government is needed. Particularly relating to ensuring the provision of adequate quality housing stock and documentation. It is unclear how best to respond to low housing stock, and further arrivals. For example, temporary shelters are not supported by any of the authorities. They also cannot be constructed in Santchou due to flooding. Land is available for sale/ rent in rural areas, with Santchou being another point of exception. Mobile money was the delivery mechanism of choice for the majority of displaced persons interviewed. This would also be preferable due to security and safety concerns. However this risks excluding certain groups that lack identity documentation, have language difficulties or do not have a phone. Therefore significant help with documentation would be required (or acceptance a service provider to use a Red Cross issued temporary ID/ registration card in place of national ID for the opening of an account). Cash in hand could be used for those not able to access mobile money. 4 Methodology The objective of this study was to inform an evidence based planning exercise that considers cash for shelter and NFI in the Western region of Cameroon. This involved collecting information on the following areas: 1. Clarification on needs and preferences 2. Rental markets - availability, quality, prices and other influencing factors on the rental market and hosting arrangements 3. NFI market – availability, quality and prices 4. Availability of financial service providers/ money agents 5. Government support for the use of cash As the Red Cross recently commissioned a needs assessment, only additional information that would complement this assessment was collected. In relation to needs and preferences, information was collected relating to the use of cash, rental markets and preferences on modality, transfer mechanism and financial service providers that were not included in the needs assessment. Methods The following tools were used for this study: • Observation(s) • Market mapping exercise(s) • Trader/ retailer interviews • Local government interviews • Community leader interviews • Household interviews • Landlord / rental agent interviews • Host family interviews The following seven locations were visited between the 13th and 21st of March 2019. Department Menua Noun Large towns Dschang Foumban Small towns Santchou Bangourain, Koutaba, Magba Village - Didango (Koutaba) 5 A mix of data collection tools were used, the below table contains a list of each tool, the interview language(s) used, respondent groups and the number of interviews that were conducted. Questionnaire(s) Interview Respondents Number of language interviews held • Interview form on attitudes towards French Local government 10 government cash representatives • Interview form on rental market • Displaced household questionnaire English Displaced persons 68 displaced persons • Community leader questionnaire French / Community leaders 30 Community English (local & displaced) leaders • Host family questionnaire French / Hosting families 44 host family English representatives • Landlord/ rental agent questionnaire French Rental agents & 58 Landlords/ landlords rental agents • Questionnaire for Financial Service French Financial service 20 financial Providers providers service providers • Market mapping tool French Market traders & 52 retailers • Price and stock survey tool market 16 market • Questionnaire for market representatives representatives representatives 10 tools - 7 response groups 298 interviews Sampling For each respondent group a different approach was taken. • For government officials, functionaries in key positions were selected for interview, including the mayor and prefect or sub-prefect. Additional interviews