Provision of cash for food assistance to IPC Phase 3 and 4 vulnerable households (HH) in Shirin Tagab district of Faryab province. Afghanistan is facing its second drought in four years, according to FSAC analysis. The IPC report published in May 2022 indicates that an estimated 20 million people, or 47 per cent of the population, are in crisis or emergency levels of food insecurity between March and May 2022. High acute food insecurity persists across Afghanistan, as a combination of a collapsing economy and drought depriving nearly 20 million Afghans of food. Among these are about 6.6 million people in Emergency (IPC Phase 4) and 13 million in Crisis (IPC Phase 3). Afghanistan’s food security situation remains highly concerning, exacerbated by economic decline and high food prices. Nearly half the country's population are still experiencing high and critical levels of acute food insecurity between March and May 2022. Among these, about 6.6 million people are classified in Emergency (IPC Phase 4), characterized by large food gaps and/or employing emergency coping strategies to access food. 

Situation in Faryab is worse than many other provinces according to the IPC report. Faryab has been classified in IPC phase 4 with 20% of people in phase 4 and 35% in phase 3. Overall, 55% of people in Faryab needs urgent food assistance. 

Pre-lean Season Assessment shows that 87% of HHs in Faryab experienced some sorts of shocks (unemployment, income reduction, natural disaster, increase in food prices and etc) in the past six months. Reduction in income, loss of employment, increase in food items prices and natural disaster are the major shocks affecting households’ income and livelihoods in Faryab. The same assessment shows that 98% of households borrowed money in the last 3 months and 85% households who borrowed money reported that they borrowed money to buy food. The current deficit in precipitation severely impacted Faryab and the food production will be very limited in the upcoming harvest season. 

SOUND will provide 1,184 households (8,288 individuals using 7 as the average household size) in Shirin Tagab district of Faryab with cash for food assistance for 6 months to cover 75% of the full food basket. Every HH will receive $60 for 6 months ($60*6=$360/household). The distribution will happen in six rounds and beneficiaries will receive the equivalent amount in AFN based on the market exchange rate in each round of distribution, per the FSAC guideline. To ensure assisted HHs spend the cash for purchasing food commodities, SOUND decided to have monthly distributions. The objective of the project is to fulfill HH food consumption gap and improve HHs financial access to food so through monthly distributions this objective will be achieved. SOUND will also have awareness raising sessions on what food commodities HHs should purchase based on the FSAC standard basket. Having more distribution rounds, people awareness will improve.

SOUND will implement an unconditional cash assistance to the most vulnerable HHs. The decision was made based on the high level of food needs in Faryab. Furthermore, cash is selected as the preferred modality of response because as per the SOUND experience and field observation, markets are functional in Shirign Tagab district of Faryab. SOUND’s experience in the project location also confirms that the majority of people prefer cash as the appropriate modality. Given the current state of banking institutions and the constraints they face in terms of cash transfers and withdrawals, cash assistance will be provided through the Hawala system, which has been selected as the most feasible used method. Based on SOUND assessment, Hawala / financial service providers operate in Shiring Tagab and other districts of Faryab. Hawala is a more feasible option than voucher and other modalities because its quick and can be easily mobilized. Looking at the urgency of need, assistance should be provided quickly to vulnerable people. FSPs in the targeted areas are also operating and they have enough capacity to transfer the cash.