Collecting key data on markets to support cash and voucher assistance

July 23, 2021

StatementIn collaboration with national cash working groups, UN agencies, implementing partners, and donors, REACH works globally and nationally to address core information gaps in cash and voucher assistance (CVA) and provide evidence to support more effective CVA interventions.

As of April 2020, REACH’s work in CVA spans 20 countries and four main themes:

  • Harmonised, inter-agency Joint Market Monitoring Initiatives (JMMIs) that bring together many cash actors to regularly collect data on market prices, functionality, and accessibility, which enables the calculation and adjustment of local Minimum Expenditure Baskets as well as of the standard transfer values used in multi-purpose cash.
  • Coordinated Joint Rapid Assessments of Markets (JRAMs) that provide a quick snapshot of how and whether markets are able to respond effectively to a well-defined shock.
  • More in-depth cash feasibility studies and market assessments that aim to answer larger questions about the structure and functionality of local markets and to support evidence-based advocacy for the most effective aid modality available.
  • Thematic assessments tailored to fill specific information gaps: for example, financial service provider assessments, labour market assessments, post-distribution monitoring systems for CVA programmes, and others.

Market monitoring and analysis has the potential to better inform CVA assistance in an effort to help various population groups meet their basic needs. Such assessments are also often designed to monitor the financial burdens placed on households by humanitarian crises, and whether these vulnerable households can reasonably access the goods and services within their local markets. Ensuring that physical, financial, and social access is maintained is paramount for them to meet their needs.

For more information

All of REACH’s cash and voucher assistance-related assessments conducted around the world can be accessed on the REACH Resource Centre through the dedicated Cash section. Users can freely explore the anonymised datasets as well as downloading final published outputs.

23/07 – Libya’s liquidity crisis – exchange rates, letters of credit (LCs), international prices, conflict, and oil production are impacting the cost of essential commodities

The 2020 Libya Multi-Sectoral Needs Assessment found that cash and markets related needs were the most prevalent needs amongst assessed households, which also most commonly overlapped with needs in other sectors. Therefore, REACH teams conducted an additional assessment aimed to support a more detailed understanding of the drivers of the ongoing liquidity crisis in Libya, and the impact thereof on the Libyan population. The methodology consisted of a mix of longitudinal Joint Market Monitoring (JMMI) price data analysis, as well as structured and semi-structured interviews with bank clerks, municipality representatives, parallel market/hawala actors, merchants, and Libyan households.

Topics covered by this brief

  • 15 months of price trends analysis from January 2020 – May 2021
  • Analysis of key variables affecting the domestic market and essential goods. A step by step analysis on the circular flow of the cash
    supply chain in Libya
  • Influencing factors of the Libya’s liquidity crisis from the perceptions of bank clerks, municipality representatives, merchants, and parallel market/hawala actors

The final brief contains, among others, an interesting summary infographic that, through mapping the flow of cash through the closed circuit supply within Libya, visualizes the main bottlenecks and factors in cash circulation driving the crisis, such as low confidence in banks among merchants and households, and a resulting preference for parallel market financial exchanges.

Learn more by reading the Libya Devaluation and Currency Crisis Brief


22/06 – Uganda – Monitoring the markets in refugee hosting areas is key as Uganda is hard hit by COVID

As Uganda is among some African countries seeing a dramatic rise in the number of infections (a total of 68,779 confirmed infections, including 584 deaths) amid a vaccine shortage, it will be crucial to assess the impact of the tightened lockdown measures on markets and purchase power – in particular for refugees. Indeed, Uganda is one of the top refugee-hosting countries in the world, with a protracted refugee situation and ongoing influxes of refugees from neighboring countries. The country hosts 1,494,505¹ refugees as of 1 June 2021, with nearly 95% of refugees living in settlements primarily in the West Nile and Southwest regions of Uganda.

In view of this situation, the World Food Programme (WFP) has established a regular market price monitoring system across refugee settlements to inform cash-based response approaches. These monitoring efforts predate the COVID-19 crisis. However, due to the changing situation since the Ugandan government introduced COVID-19 containment measures in mid-March 2020, there is a risk that markets could be significantly affected and beneficiaries receiving cash assistance may not be able to access critical goods. In response, with the technical support of the Market Analysis Task Force and REACH in particular, this market price monitoring system has been expanded to capture crucial information to understand the impact of COVID-19 on commodity prices and functionality of markets in refugee communities across Uganda since March 2020.

Main findings from the latest round (April 2021):

  • Across regions, prices for key food items in the Minimum Expenditure Basket (MEB) have mostly remained stable. Since January, the price of millet in West Nile Region (WNR)  has increased by 12% from 3400 to 3800 UGX. In Southwest Region (SWR)  there has been a slighter increase. The price of maize flour increased by 16% from 1900 to 2200 UGX per KG in April.
  • Nationally, 15% of the interviewed vendors reported difficulties in meeting demand and 13% of the interviewed vendors reported concerns about their stocks running out. However, these challenges are more frequently reported by vendors in WNR (24%) compared to those in the SWR (3%)
  • The WFP cash transfer value could cover only 35% of the food MEB (41% in South West and 32% in West Nile).
  • The market price of the WFP GFA food basket registered a marginal month-to-month increase of 2% from February to April 2021.

The Market Analysis Task Force will continue to monitor market prices and functionality over the coming months, with a particular focus on understanding the effects of the recently announced lockdown on price levels in refugee settlements.

For more information on the Market Monitoring in Uganda: https://www.reachresourcecentre.info/country/uganda/theme/cash/

Stay tuned to get the info on the most recent Market monitoring rounds by subscribing to our Resource center alerts: https://www.reachresourcecentre.info/subscribe/


31/05 – South Sudan – Significant increase in the price of crucial goods in Eastern & Western Equatoria represents a threat for affected communities

To support the effective utilization of cash and vouchers as a modality of humanitarian assistance – destined to strengthen three of the nice Grand Bargain work streams – the Joint Market Monitoring Initiative (JMMI) was created by the South Sudan Cash Working Group (CWG) in 2019. This initiative benefits from the technical support of REACH, funded by the World Food Programme.  Marketplaces across South Sudan are assessed on a monthly basis. The goal? To keep a close eye on the cost of the Multi-Sector Survival Minimum Expenditure Basket (MSSMEB) in the country.

Down to its core, the Multi-Sectoral Survival Minimum Expenditure Basket (MSSMEB) represents the minimum culturally adjusted group of items required to support a six-person South Sudanese household for one month. The cost of the MSSMEB can be used as a proxy for the financial burdens facing households in different locations. The MSSMEB’s contents were defined by the CWG in consultation with relevant sector leads.

To ensure that calculations are provided accurately for the entire country, the JMMI in South Sudan benefits from the participation of 20 aid agencies. Data collection takes place across over 30 locations spread out across the country, and closely monitors the fluctuation in price of 20 key commodities.

The latest output of the JMMI in South Sudan from data collected in early April revealed some concerning trends regarding the increase in price of the MSSMEB, particularly in the Eastern Equatora region:

  • In the first week of April 2021, the highest Multi-Sectoral Survival Minimum Expenditure Basket (MSSMEB) prices were recorded in Kapoeta Town (Kapoeta South), Kongor, Panyagor (Twic East) and Ulang Town (Ulang). The high MSSMEB prices in these locations were driven by high reported cereal prices of 700 SSP, 718 SSP and 683 SSP per kilogram respectively.
  • The highest Multi-Sectoral Survival Minimum Expenditure Basket (MSSMEB) was recorded in Kapoeta Town (Kapoeta South) an increase of 113% since March, 2021.
  • In just a year, the price of the MSSMEB has increased enormously in three counties in Eastern Equatoria: 144% in Budi, 242% in Kapoeta South, and 130% in Magwi.
  • In Kapoeta town, this trend is particularly concerning given the fact that the price of the MSSMEB increased by over 110% since last month!
  • A similar increase is witnessed in Yambio town, where the MSSMEB increased by 139% in comparison to last year.

For more information on the JMMI in South Sudan or to view previous rounds of data collection, please feel free to explore its dedicated section on the REACH Resource Centre: https://www.reachresourcecentre.info/country/south-sudan/cycle/723/#cycle-723


09/04 – Syria –  Highest Survival Minimum Expenditure Basket value ever recorded in Northeast & Northwest regions

Syria’s Survival Minimum Expenditure Basket (SMEB) represents the minimum culturally adjusted set of food and non-food items required to support a 6-person household for a month. To ensure these items remain available and accessible for populations in need, and to monitor fluctuations in prices which can have a negative impact, REACH and its partners collect monthly information on the prices and availability of 36 basic commodities across Northern Syria, among which 18 are in the SMEB.

In January 2021, REACH and market monitoring partners such as CARE, GOAL, People in Need, and the Syrian Association for Relief and Development (SARD) collected data from 33 sub-districts in the northwest part of the country and 26 others in the northeast. In total, over 4,000 individual shops were assessed in the process.

Results from the situation overviews published in the northeast and in the northwest showed that the value of the regional SMEB was the highest ever recorded. The value of the SMEB increased respectively by 44% and 38% in the Northwest and Northeast regions of Syria.

Having a SMEB value so high is concerning. The SMEB represents a household’s core, non-negotiable expenses, and such high figures suggest that these households are finding it hard than ever before to make ends meet.

Data collected throughout these regions highlighted the extent to which the depreciation of the Syrian Pound (SYP) has had a severe effect on households’ ability to afford basic food items, such as meat and vegetables.

Since July 2020 the SYP depreciated by 22% against the US Dollar (USD) in the Northwest, where the highest exchange rate was recorded in the Afrin community in Aleppo governorate. In the northeastern part of the country, the areas most affected by the depreciation of the SYP are mostly located in the Ar-Raqqa governorate.

Of notable concern, 80% of the total vendors surveyed in Northeast Syria and 78% in Northwest Syria reported that price inflation remained their primary challenge for supplying their stores. Price inflation is particularly prevalent in Idleb.

For more information on the situation of markets across Northern Syria, please feel free to download the January 2021 situation overviews from the Northwest and the Northeast.

Further datasets, reports, and fact sheets from the market monitoring exercises conducted in Syria can be accessed on the REACH Resource Centre.

 


09/04 – South Sudan – 21 humanitarian partners involved in the Joint Market Monitoring Initiative

In South Sudan, a continued and protracted macro-economic crisis, accompanied by currency depreciation, has resulted in high food prices, eroded household purchasing power, and made food unaffordable for a significant proportion of the population. Disruptions caused by COVID-19 to the supply chains of both commercial and humanitarian actors worsened the severity of food insecurity.

The latest Joint Market Monitoring (JMMI) fact sheet published in March is based on data collected on 21 basic commodities drawn from the Multi-Sector Survival Minimum Expenditure Basket (MSSMEB) across 52 marketplaces.

The key findings reveal that the cost of the food basket has increased by 9% nationally in the span of a single month, with certain areas witnessing even more severe increases across just two weeks, such as Juba town (60%), Akobo (75%), and Kapoeta (79%).

The full MSSMEB has increased by over 90% between March 2020 and March 2021.

The prices of certain items have severely increased in just over a week, as reported by the JMMI factsheet, such as rice (+120%), sorghum grain (+102%), maize grain (+62%), and flour (+61%).

The full catalogue of cash and markets assessments conducted in South Sudan are also accessible on the REACH Resource Centre.

 


09/04 – Global – Regularly updated Market Monitoring dashboards in Syria, South Sudan, Somalia, Yemen, Libya, and Iraq

To keep aid actors informed on a regular basis and provide the humanitarian community with up-to-date data from its Joint Market Monitoring Initiatives, REACH has launched interactive dashboards in . Through these dashboards, humanitarian partners can consult all of the information collected, tailoring their searches to retrieve the key information they are looking for within a precise time-range, for certain specific commodities, or within a precise geographical area.

Screenshot of a section of the Joint Market Monitoring Initiative dashboard in Somalia. Click here to access where the dashboards are hosted.

For more information

All of REACH’s cash and markets assessments conducted around the world can be accessed on the REACH Resource Centre through the dedicated Cash section. Users can freely explore the anonymised datasets as well as downloading final published outputs.

The examples provided above represent only a snippet of market monitoring activities that REACH is leading across the world. Aside from the countries highlighted above, REACH is also involved in market monitoring data collection in