The armed conflict has exacerbated pre-existing vulnerabilities across Sudan. Damage to mobile networks and other infrastructure, disruptions of banking and financial service providers (FSPs) have had cascading effects on liquidity, markets, and supply chains. The negative economic repercussion because of the conflict have fuelled a rise in inflation and depreciation of the Sudanese pound.
Since April, more than 60 Cash Working Group (CWG) partners have been able to gradually implement small-scale cash transfers, both cluster and multi-purpose cash assistance, reaching more than 100,000 people monthly. CWG partners collaborate to create the essential conditions that will allow for the expansion of cash transfers wherever possible.
As multi-purpose cash assistance (MPCA) provides flexibility to address the multi-dimensional needs of conflict-affected households and will be a strategic response modality in 2024 and beyond. MPCA is the only standalone assistance that is inherently multi-cluster by nature and as such, can address several immediate needs within one distribution. In addition, the efficiency of MPCA delivery increases as financial and mobile infrastructures are gradually restored.
Coordination and the role of the CWG
The CWG is the coordination body for MPCA, while cluster cash and voucher assistance (CVA) are coordinated by the respective clusters with technical and coordination support from the CWG as needed. The CWG established several technical working groups for the following priority areas: (i) Minimum Expenditure Basket (MEB); (ii) Market and Price Monitoring; (iii) Targeting; and (iv) financial service providers (FSPs), liquidity and cash feasibility.
The CWG tracks monthly trends on market functionality and prices, in collaboration with REACH/IMPACT, through the Joint Market Monitoring Initiative (JMMI), as well as WFP monthly market monitoring exercises. JMMI data is used to harmonize transfer values, which is reviewed on a quarterly basis to inform collective decisions around the trigger for adjustment when prices fluctuate significantly.
The CWG’s priorities for 2024 include developing a more comprehensive MEB, collaborating with clusters to support cluster CVA, and systematically engaging with the ICCG to ensure inter-cluster integration of CVA and MPCA into the broader response. In the medium to long-term, the CWG will engage with International Financial Institutions and other development partners to explore opportunities for collaboration around linking humanitarian cash with social protection programming, such as the Sudan Family Support Program.
Emergency MPCA transfer value and frequency
The MPCA transfer value will be based on the October 2023 Interim MEB, which utilizes the hybrid approach calculation methodology. As per the CWG recommendations, newly displaced and returning households in the highest severity categories will receive three rounds of MPCA, after which ongoing monitoring and evaluation will determine the need for further assistance, especially in areas with unmet needs and lacking cluster-specific interventions.