Resilience and Innovation in Crisis: An Unconventional Partnership to Deliver Cash Assistance in Sudan
Written by Mohamed Ireg and Ali Blumenstock with support from the BRIDGE program team. Read the full learning brief here.
The year 2023 has marked a tumultuous chapter in Sudan’s history, as violent clashes between the Sudanese Armed Forces and the Rapid Support Forces have plunged the nation into chaos. The consequences of this conflict are far-reaching, leaving a trail of displacement and urgent needs in its wake. Displaced families, host communities, and those taking refuge in sheltered locations have found themselves grappling with immediate livelihood losses and the daunting task of meeting their basic needs. Escalating food and commodity prices, coupled with the persistent threat of violence, have exacerbated the food insecurity crisis. Amidst this backdrop of adversity, communities and agencies like Mercy Corps have come together to deliver multi-purpose cash assistance (MPCA) to those most severely affected by the crisis.
MPCA is a form of unrestricted cash transfers, which offer flexibility and dignity to those affected by crisis. As the crisis deepens in Sudan, MPCA is proving to be a powerful tool, offering a lifeline to those in dire circumstances.
MPCA not only shifts power to those affected by crisis by giving them the autonomy to decide what they need most, but also fosters resilience and stability during times of turmoil.
Mercy Corps recognizes the potential of MPCA in delivering impactful aid. Unlike traditional forms of assistance, MPCA allows recipients to prioritize their most urgent needs, be it food, shelter, healthcare, or education. With functional markets in some regions of Sudan, despite the conflict, MPCA has enabled households to access vital goods and services, strengthening both household consumption, food and water security, and access to critical basic services. However, the ability to use MPCA in the Sudan context was impacted by the changing financial landscape of a country ravaged by conflict. The turmoil led to the closure of banks, damage to essential banking infrastructure, and disruption in cash flows. Traditional financial systems were shattered. This left a void filled by mobile payment platforms and informal money transfer networks facilitated by mobile work operators.
Amid this financial turmoil, the USAID-funded Building Resilience in Communities Affected by Conflict and Crisis (BRIDGE) Program sought to implement an MPCA initiative to provide a lifeline to those grappling with the lean season and the amplified challenges it brought. But the task was formidable; how could MPCA be effectively delivered in a shattered financial landscape with liquidity shortfalls and unavailability of mobile money services?
The answer required creative thinking, building on alliances with non-traditional partners for the delivery of humanitarian assistance. Mercy Corps approached Ebdaa Bank given their strong last-mile agent networks in rural Sudan. Though they had never delivered cash assistance, the crisis and the lack of capacity among other financial service providers demanded innovation.
Mercy Corps and Ebdaa Bank embarked on a journey that required collaboration and adaptation: piloting the delivery of MPCA in Gedaref state. The journey began with comprehensive training for Ebdaa Bank’s team, equipping them with the tools to navigate the complexities of cash assistance procedures. From gender-sensitive programming to community accountability and safeguarding, the training was designed to empower the team to navigate uncharted waters. Ebdaa Bank’s local networks and relationships were leveraged to ensure that MPCA reached the intended program participants.
Security and risk assessments and mitigation measures became the cornerstone of safe operations. Careful planning and coordination with community leaders ensured that distribution dates and locations were communicated effectively. Monitoring systems were quickly set up to monitor and provide feedback on the cash distribution process and on the experiences of those receiving assistance. In a conflict-ridden environment, these precautions were crucial to safeguarding both the recipients and those facilitating the distribution.
The success of the partnership between Mercy Corps and Ebdaa Bank, an institution that successfully delivered cash to affected people despite having no prior cash transfer experience, was a testament to the power of adaptation, innovation, and collaboration in times of crisis. The partnership demonstrates that shared learning environments are possible when organizations come together to bridge expertise and service gaps.
Key Insights from the partnership with Ebdaa Bank
Capacity and Flexibility:
Microfinance institutions possess the capacity and flexibility to deliver cash through their local branches and agent networks. Their experience in providing funds at the grassroots level through existing financial services made them well-suited for direct distribution.
Strong Networks:
Microfinance institutions boast strong relationships within local communities, making them trusted partners in delivering aid effectively. The ability to draw upon these relationships enhances the impact of MPCA distribution.
Access to Documentation:
Microfinance institutions have the expertise to work with households that have limited documentation, facilitating their access to financial services. This knowledge can be leveraged to support internally displaced persons (IDPs) in obtaining necessary documentation for accessing public services.
Liquidity Management:
While microfinance institutions might have limited liquidity initially, careful planning and discussion can ensure that funds are available. Mobilizing cash from local sources, such as commercial vendors and other agents, can be a strategic approach to overcome liquidity challenges.
Security Considerations:
Moving cash in conflict-prone areas requires meticulous security assessments and protocols. Collaborative efforts and partnerships along the distribution route and reconfirming security conditions before movement of cash can mitigate potential risks.
Future Financial Inclusion:
Partnerships like these can open doors to financial inclusion among vulnerable populations. Integrating cash transfer services into microfinance institutions’ portfolios could lead to tailored financial education programs, empowering recipients with financial literacy and capability. The program also kept Edbaa afloat during the crisis, enabling them to continue to offer products and services to other clients and keep their business functioning. Ebdaa bank is now considering adding cash transfer services to their long-term portfolio, which could create an opportunity to link cash transfers with financial inclusion.
The success of the partnership highlights the potential for microfinance institutions to play a pivotal role in humanitarian efforts, even in the most challenging contexts. It demonstrates that unconventional actors can rise to the occasion and make a significant impact when armed with the right tools, training, and support.
Looking ahead, the partnership between Mercy Corps and Ebdaa Bank stands as a testament to the resilience of communities in the face of adversity. As Mercy Corps continues its mission to help people build secure, productive, and just communities, it does so with the understanding that true impact is born by embracing adaptability, fostering collaboration, and leveraging innovative approaches.
From inquiries about Mercy Corps’ work in Sudan, contact Sibongani Kayola.
