Regional initiative to strengthen the triple nexus through Cash and Voucher Assistance (CVA) Humanitarian trends: rising needs ask for new approach 

When looking at trends in humanitarian and development aid, it becomes clear that more people will be in need of aid, while funding is decreasing. Worldwide, economic, political and social inequality are on the rise, crises are becoming more protracted, and the humanitarian caseload is growing. Also, infectious disease outbreaks (like Covid-19) are more prevalent and harder to control.1 The Climate crisis and conflict are expecting to cause the number of people in need of international humanitarian assistance to grow. In 2021, 235 million people will be in need of humanitarian assistance; this means 1 in 33 people worldwide needs help, which is the highest figure in decades. 2 

 

While humanitarian needs have been growing over the last few years, funding is falling short. By October 2020, only 38% of the nearly 40 billion USD was funded.3  

 

During the World Humanitarian Summit 2016, the Grand Bargain (GB) was launched by key donors and aid agencies, through which they committed to improving the effectiveness and efficiency of humanitarian action, to better serve people in need, and agreed on 9 GB commitments. Cash as humanitarian assistance is one of the 9 commitments of the GB. Marked as priorities for cash-based programming is coordination and information sharing within and between aid organisations and donors. Also, the GB clearly stipulates that the engagement between humanitarian and development actors needs to be enhance (double nexus).4  

 

Cash and Voucher Assistance (CVA) 

Cash and voucher assistance has increased and is used more effectively and efficiently in the last years. It allows for a cost-efficient approach in a context where the gap between needs and resources is growing. It results in more aid directly reaching beneficiaries, and it fits the ‘new way of working’ with less physical interactions. Moreover, it offers a dignified solution that puts decision making power with those who receive it: giving them the flexibility to choose what to purchase based on their preferences. Also, cash transfers support local markets, lays the foundations for recovery and resilience, and can complement existing social safety protection systems. It thus has the potential to link humanitarian aid to longer term development programming.  

 

Cordaid: CVA and triple nexus 

Several Cordaid country offices have been using cash (and/or vouchers) over the last few years. Although most cash programming is implemented in humanitarian programmes, resilience and health programmes are also using cash and vouchers. The Afghanistan office has an expertise in implementing a variety of cash programmes (both humanitarian as well as health); 90% of the current portfolio are CVA projects, both conditional and unconditional, restricted and unrestricted. Staff are trained on distributing cash in envelopes, vouchers, using mobile money, or the ‘hawala’ system. Other country offices that have experience in implementing CVA are South Sudan, Ethiopia, Syria, and Bangladesh.5  

 

The Cash CoE that was established in 2018 has developed a Cordaid cash strategy, has trained several country staff on basic CVA skills, and has developed procedures and tools. This initiative proposes to build on those achievements, by continuing capacity strengthening of CO and local partner organisation staff, conducting a review of CVA activities implemented so far, and using shared experiences and lessons learned to develop cash strategies and action plans for three COs and their local partners. The Afghanistan country office will take the lead in this initiative, using their expertise to strengthen capacity of other COs and their local partners.  

 

Cordaid’s resilience team recently developed a guideline scheme on the triple nexus; with practical recommendations to support project design, implementation and monitoring of (triple) nexus projects. This guideline will be used in this initiative when developing new cash projects, and the triple nexus approach will be integrated in cash strategies. Expected results: 

Evaluation/ Learning: 

Conduct review of recent Cash and Voucher (CVA) activities in relevant countries in which Cordaid is active. The Cordaid CVA manual developed in September 2020 lays out different elements of CVA (feasibility, design, and programming), to which CO capacity and recent CVA activities and practices will be measured. Also, the implementation and monitoring practices of existing cash programming will be reviewed. Good practices, challenges and gaps in capacity and needs will be identified 

A CVA plan will be drafted for 3 COs, including Afghanisatn. The other 2 COs will be selected based on the results of the review.  

Capacity strengthening/ Training: 

Based on the review, develop and deliver targeted training and support to strengthen the capacity of 3 COs (Cordaid staff and/or local staff).  

 

Guide/ Cash Readiness 

A 2 pager for visibility/ acquisition purposes will be developed. 

Through the implementation of the CVA plan, 3 COs have improved one or more elements of CVA programming. The work with these CO and partners will provide a model on how to increase cash readiness and improve CVA quality programming and expand CVA capacity to be replicated by other CO and local partners). 

Link cash programming with recovery/ resilience, sustainable development, health (building upon current cash activities in Results Based Financing (RBF)) and peacebuilding activities (triple nexus) Direct beneficiaries: At least 20 

9: minimum 3 staff from Afghanistan, South Sudan and Ethiopia to be actively involved in capacity strengthening. 

11: minimum 1 staff per other CO's that have implemented CVA recently. 

Local partner staff (to be determined, based upon selection of CO's after review) 

 

Indirect beneficiaries: At least 1,100 

Beneficiaries of ongoing CVA projects will benefit from the quality improvement. Exact number is to be determined, based upon the selection of CO's after the review. For Afghanistan, there are at least 1,100 beneficiaries that are expected to benefit from improved CVA programming.