From displacement to business opportunities: WFP Sudan’s cash transfer programme
In 2003, war broke out in the Darfur region of Sudan, forcing thousands of people to flee their homes fearing for their lives. Despite Sudan’s complex operating environment, the United Nations’ World Food Programme (WFP) is addressing humanitarian needs with innovative solutions while empowering the people it serves to change their own lives. This is being done through a cash programme which allows people to choose what they use their money for.
In 2004, Ibrahim Hussein — a now well-established trader in Otash Camp working for WFP’s cash transfer programme, was among those who fled the conflict in their homelands and arrived at Otash IDP camp in South Darfur, Nyala, in hope of a better life and a new beginning.
“I came to Otash Camp as a normal IDP,” he said. “I had nothing. I had no means to provide anything for myself nor my family — my wife and three children. My family and I were fully dependent on WFP’s humanitarian assistance. I had to do something for myself, and find a way to provide for my family.”
Otash Camp is home to over 75,000 displaced people.
“I started a small trading activity in 2008. I used to take commodities from other traders in Nyala town market, then I would bring them to the camp to sell to other IDPs. I would then take the money back and pay the traders. With time, hard work, and good faith, I managed to build a small capital.”
WFP shifted from general food assistance — which directly provided displaced people with food items — to voucher-based food assistance — which allowed displaced people to use WFP provided vouchers in exchange for various food items. This transformation took place in Otash camp at 2013 and continued until 2016, positively affecting small-scale traders, creating a job market for them.
Towards the end of 2016, with UKaid’s contribution of GBP 3.1 million, WFP transitioned to a cash-in-hand programme, allowing cash to be distributed to those most-in-need. Displaced people would then use the cash to purchase — not only food, but other things they may need. This gives them the freedom of choice meanwhile generates income and influences the economic growth of the local market.
“When WFP started food assistance through their voucher programme, I was fortunate enough to be one of the contracted traders,” said Ibrahim. “That really helped my income and I benefited a lot. Then when WFP shifted again to Cash-based Programme, I was one of those who were contracted by Blue Nile Mushriq Bank (BNMB) as one of the retailers. The Cash-Based Programme has made a significant impact on the IDP community, covering displaced people’s needs. It generated business trading activity because most of the money is circulated inside the camp increasing the income of traders while assisting displaced people in obtaining most of their needs that were unavailable with general-food or voucher-based assistance.”
Evidence show that having the same traders from the voucher assistance programme become the bank retailers in the camp, had a positive impact on the cash programme. Displaced people, especially women, no longer have to queue for long hours as they previously did for voucher distribution. This gives them more time to work and earn small savings in addition to the assistance they receive from WFP. Having many retailers in the area, including roadside vendors, also ensured lower competitive prices. This allowed IDPs to generate savings that are used to meet basic household needs without curtailing the amount of food consumed. Evidence also showed that the cash-in-hand programme stimulated the local economy as local retailers introduced new commodities which generates more variation and therefore more profit.
Thanks to UKaid’s support, the cash programme has been running for eight months in South Darfur, bettering lives of thousands of displaced families like that of Ibrahim.
Sustained funding and partnership is vital in order to ensure a solid road to a better future for growth and development in Sudan.
