Life-Saving Cash for Food Assistance for IPC Phase 4 Food Insecure People in Shahristan district of Daikundi Province The Integrated Food Security Phase Classification (IPC) analysis shows the food security situation has deteriorated. 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. 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 6,797 individuals (971 households) in Shahristan district of Daikundi province with food assistance through unconditional -unrestricted cash distributions for food assistance. VOPOFA will support these vulnerable food insecure households with 6 months' 75% of the FSAC standard cash basket ( Valued at USD60 per month). Each household will receive $360 ($60*6=360) cash for food assistance. For operational and feasibility purposes, the distribution will happen in 3 rounds/installments and beneficiaries will receive $120 (AFN equivalent) in each round of distribution every two months. To ensure beneficiaries spend the cash for purchasing food items, VOPOFA will distribute leaflets explaining the standard food basket while distributing the cash. Awareness raisings will take place at the distribution sites on food items, the beneficiaries should purchase with the assisted cash. Given the remoteness and mountainous nature of the targeted area, distributing cash in 3 installments, rather than 6, will help beneficiaries to travel less and spend less of their resources and time on transportation. 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 Shahristan district. With unconditional-unrestricted cash assistance, beneficiaries will be able to purchase the food commodities of their choice in their desired quantity while this is not possible in in-kind or voucher modality. Functional Markets in Shahrestan district helps to achieve this objective easily. Food commodities included in the FSAC standard food basket are also available in the local markets. Based on the VOPOFA’s long experience in this district, 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.