2/23/2023 0 Comments Apptivate africaProviding paper cash has a high risk of infections as well as misuse and fraud, so mobile money is the preferred method of transfer. It is almost instant and attends to so many individuals all at once, it can be reduced or increased depending on the crisis fluctuation, it provides an instantaneous and automatic electronic record of every transaction, it will have a major multiplier effect and revive the local informal sector economy, and finally, using GMP ensures that there is no middleman hence potentially reducing corruption and embezzlement.Įveryone is collecting money and sending to all in a seemingly uncoordinated manner. Geo-fenced Mobile Payments (GMP) will deliver cash rapidly to the majority of the poor in a specific area in 24-48 hours. The more we fundraise, the more we can reach many households, however, the more we wait, the more people sufferĪ platform that was suggested to ease the process of cash transfers was Geo-Fenced Mobile Payments. Fundraise which is the most important and immediate call to action.Shikilia adapts already existing platforms to respond to Covid-19.īut for cash transfers to work, we need to Successful cash distribution program already exist in Kenya, such as the Inua Jamii Program. Particularly in Kenya where the food system works relatively well, cash transfers can be better for food security that food handouts or vouchers. What this does is that it creates an economic multiplier effect where every dollar boosts local GDP by $2.60.Īccording to Samir Ibrahim, research has shown that this method of relief is not abused by recipients despite the negative consequences that critics often raise. This method of cash release has demonstrated that it leads to immediate and long-term relief of poverty as it enables households to pay for essential household items in addition to food. The target are the most vulnerable people (250, 000 Kenyans immediate and 1.75 million Kenyans in the next three months) and they will be receiving Ksh 3,000 a month for three months. If those particular shops are not integrated into the voucher system, they are also economically losing out because they are losing regular customers and therefore business.Īn initiative such as Shikilia sends monthly cash transfers to low income households during the pandemic. Lastly, in informal settlements many people purchase regularly from local kiosks. Providing food vouchers also risks dangerous overcrowding at the designated shops which defeats the purpose of social distancing. Once there is no competition, the vendor can decide to increase the price of food items as he/she pleases. One example of an organization using digital vouchers is Apptivate Africa.įood vouchers usually result in food items costing more and less value for money being received, as recipients have fewer traders to select from, resulting in less competition. They can be controlled in terms of vendors to be used and the amount and type of products that can be bought. Digital vouchers are most commonly used because it’s a method that provides transparency and efficiency. The most common theme that came up was the digital voucher system where beneficiaries can redeem vouchers for essentials, especially foods from local vendors. However, we’ll take a look at all the options explored in the webinar: Unfortunately, the answer to this question would cause a debate that has no end. Which one of the following interventions do you think would work best in providing access to food and basic needs in the informal settlements?.Therefore, part two of the webinar series sought to answer two main questions: On part one of the webinar series Partnering to #CrushTheCurve, we sought to answer, ‘What is most critical for informal settlements?’ The most common answer was access to food, however, most people could not agree on the best way to ensure that families in the informal settlements got their food: Either by proving them with food care packages, giving them vouchers, or giving them cash.
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