Life-Saving Cash for Food Assistance for IPC Phase 3 and 4 Food Insecure People in Keti and Kijran Districts of Daikundi The recently updated Integrated Food Security Phase Classification (IPC) analysis shows the food security situation has deteriorated with worrying implications for the winter lean season. An estimated 22.8 million people, or 55 percent of the population, are expected to be in crisis or emergency levels of food insecurity (IPC 3+) between November 2021 and March 2022, a nearly 35 percent increase from the same season last year (16.9m). 9 million people are projected to be in IPC 4 – the highest number ever recorded in Afghanistan. In rural areas, this is largely driven by the drought. According to the SFSA 2021, while trends of increased food insecurity have been regularly observed during the lean season and winter period in Afghanistan, Afghan communities significantly reduced their resilience even prior to the beginning of the lean season. Daikundi has been classified in IPC phase 4 for many consecutive years since the level of food insecurity is too high in this province. According to the IPC analysis conducted in October 2021, 65% of people in this province are either in crisis or emergency (IPC Phase 3 and 4) situation. SFSA 2021 data also show a worrying food security situation in Daikundi. According to this assessment, nearly 87% of people have either poor or borderline food consumption and only 13% of people have acceptable food consumption. In terms of HHDS, 73% of people consume only less than 4 types of food. To cope with the food consumption gap, 14% of people are resorting to emergency livelihood copping and 54% crisis coping strategies. According to the SFSA data, cereal stock for 87% of people lasts only less than 3 months. This means that during the lean season, all of these people are running out of food stock, and they need urgent food or cash assistance. Considering the high level of need, VOPOFA will support 12,250 individuals (1,750 households) in the Kiti and Kijran districts of Daikundi province with food assistance through unconditional cash distributions. VOPOFA will support this vulnerable food insecure households with 2 months' full ration cash for food assistance. This project focuses on 2 districts of Daikundi which have remained underserved for the past many years since very few national and international organizations worked there. The distribution will happen in two rounds/installments and beneficiaries will receive $80 (AFN equivalent) in each round of distribution as per the FSAC updated response packages guideline. The proposed cash basket provides 2,100 Kcal energy for one month for a household of 7 members. Cash is selected as the most effective and efficient modality for delivering the response to vulnerable households because the markets are functional in both districts of Kiti and Kijran. Food commodities included in the FSAC standard food basket are also available in the local markets. Based on the VOPOFA’s long experience in both districts, beneficiaries also prefer cash as the proper modality of assistance. On one hand, cash will enable households to meet their food consumption gap, and on the other hand, as a multiplier effect, cash will stimulate the local economy and market and will have its medium to long term impact on the livelihoods of people in the targeted areas. VOPOFA worked with various FSPs who successfully transferred money to various districts of Daikundi province. VOPOFA will select the right FSP based on their competitiveness, financial capacity, and presence in the area of operation. VOPOFA will ensure the FSP holds a valid license to perform financial services. Given the operational context, the best type of FSP is Hawala. Mobile ownership is so limited due to poor/limited network coverage, so mobile money is not possible. Additionally, private banks do not operate in Daikundi, especially in the remote targeted districts. Given the VOPOFA’s longstanding experience in the targeted areas, Hawala is the most convenient and efficient modality for cash transfer.