In 2024, Multi-Purpose Cash (MPC) assistance in Ethiopia continues to be a key rapid-response mechanism to shocks, a response modality to vulnerable populations in locations of protracted crises, as well as a mechanism linking to recovery and building resilience. It offers flexibility and ensures that decision-making power is vested in the affected populations, allowing them to prioritize their critical and basic needs in a dignified manner. This empowerment is a continuation of the preference shown by vulnerable households in 2023, who identified CVA and MPC as their preferred form of assistance, often opting for cash over in-kind items to independently prioritize their needs. In 2023, the MPC response expanded its reach, with around 70 implementing partners reaching close to 1.2 million individuals from January to October, indicating the scalability and increased trust in MPC’s efficacy as a rapid-response mechanism and a means to support vulnerable populations in areas of protracted crisis.
The financial requirement for MPC in 2024 has been estimated to require a budget of US$100 million aimed at supporting an estimated 1.4 million beneficiaries. The continuation of this financial commitment underscores the importance of MPC in humanitarian strategy. To maintain consistency in the delivery of assistance, regional CWGs are employing interim MPC guidelines until the ICCG endorsed national Minimum Expenditure Basket (MEB) is established by the second quarter of 2024. This national MEB will reflect a comprehensive understanding of basic needs, including food, shelter, health, and education among others.
Engagement and coordination with partners and clusters have been pivotal in the distribution of MPC. Throughout 2023, this collaborative effort has facilitated the integrated use of MPC within sectoral interventions (Cash Plus and other complementary approaches) and has contributed to stronger impacts as it is best placed in an area-based approach. Such coordination ensures not only the reach but also the relevance of MPC to the sectors and areas where it is most needed.
The Ethiopia Cash Working Group (ECWG) has made significant strides in enhancing its governance structure since 2022, showcasing a commitment to a streamlined and effective coordination mechanism in line with the Inter-Agency Standing Committee (IASC) endorsed cash coordination model. This robust framework is led by a dedicated Coordination Team and an elected Strategic Advisory Group (SAG), both of which are central to the strategic direction and technical support for cash and markets related interventions at the national level in Addis Ababa.
The ECWG operates through a decentralized Area-Based Approach (ABA) for coordination, allowing for the development and operationalization of more holistic, multi-sectoral, and integrated interventions in each region. Seven sub-national CWGs operate, co-led by the government departments of Disaster Risk Management (DRM) and the Bureau of Labor and Social Affairs (BoLSA), with UN agencies and NGOs providing technical leadership and support. These regional groups are pivotal in customizing responses to fit the unique needs, as well as the economic and social landscapes of their respective areas. This devolution of decision-making to subnational CWGs has furthermore promoted local accessibility, accountability, and planning, empowering each region to contribute effectively to CVA strategy and policy development.
The ECWG's approach ensures that affected communities are integral to the response process, fostering efficient resource mobilization, effective implementation, and the sustainability of aid programs. Moreover, interlinking MPC and sectoral cash assistance with social protection is planned to pave the way for transitional programming, which would gradually lead to the phasing out of emergency cash assistance in favor of sustainable, government-led social protection schemes, that underpin a HDP nexus approach including durable and sustainable solutions. As a result, in Ethiopia in 2024, MPC will not only address immediate needs but will also be an entry point for long-term sustainability and self-sufficiency among the affected populations.