Multipurpose Cash Assistance Activities Worldwide
USAID has long been a global leader in using cash-based programming, as appropriate, to meet humanitarian needs. In FY 2018, USAID/OFDA created a separate programming sector for multipurpose cash assistance (MPCA), which enables USAID/OFDA partners to provide cash to meet a variety of essential needs with one intervention (see Sector Overview). MPCA is best used in contexts where markets are functioning, but disaster-affected people lack the economic resources to meet their basic needs.
For example, in Yemen, economic deterioration and widespread loss of livelihoods decreased household purchasing power, further exacerbating humanitarian needs due to years of ongoing conflict. In response, USAID/OFDA contributed more than $4.6 million in FY 2018 to four non-governmental organization (NGO) partners in Yemen for cash transfers, allowing beneficiaries to purchase food, water, cooking fuel, and cover transportation costs. Similarly, hyperinflation and political crisis in Venezuela has decreased households’ access to needed goods and services, triggering an influx of Venezuelans to neighboring countries. With nearly $7 million in FY 2018 funding, USAID/OFDA, in collaboration with USAID/FFP, is supporting the provision of cash assistance to help Venezuelans access household and hygiene items, shelter, water, and food in neighboring Colombia.
Meanwhile, years of conflict perpetuated by Boko Haram and the Islamic State of Iraq and Syria (ISIS)-West Africa have triggered a humanitarian crisis in the Lake Chad Basin, including areas of Cameroon, Chad, Niger, and Nigeria. The conflict and resultant displacement has hindered livelihoods and cross-border trade in the four countries, resulting in an estimated 11 million people requiring humanitarian assistance, according to the UN. One USAID/OFDA NGO partner is providing cash transfers to vulnerable and conflict-affected populations in Cameroon and Chad to meet basic needs and prevent the use negative of coping mechanisms, such as selling productive assets. In Nigeria, USAID/OFDA is supporting two NGOs to distribute short-term cash transfers to cover the emergency needs of vulnerable households while they transition towards self-reliance through other humanitarian interventions. Overall, USAID/OFDA contributed nearly $5.3 million in FY 2018 funding to support MPCA activities in the Lake Chad Basin.