WFP advances cash-based aid model, decreasing reliance on in-kind food assistance

By Alemitu Homa @alemituhoma

Addis Abeba – The World Food Program (WFP) has announced a shift towards a cash-based aid model, reducing its reliance on in-kind food assistance.

During his visit to Ethiopia last week, Carl Skau, the Deputy Executive Director of the WFP, briefed selected media outlets about the organization’s ongoing operations. He highlighted the importance and relevance of adopting cash-based modalities within the context of humanitarian food assistance efforts in Ethiopia.

Until now, the organization’s focus has primarily been on the in-kind distribution of food aid. However, the Deputy Executive Director stated that the WFP intends to move more towards a cash-based aid modality wherever possible.

“Where markets are functioning, [cash-based modality] is a better approach because it allows beneficiaries to determine their most pressing needs. It also supports local markets,” Skau explained. “This is a move we are encouraging donors to embrace, moving away from reliance on in-kind food assistance.”

In 2024, the WFP provided cash assistance of over $1.3 million to vulnerable populations in Ethiopia as part of its humanitarian efforts.

Specific figures from WFP Ethiopia Country Briefs indicate that in August 2024, the organization distributed $1 million in cash assistance to 1.6 million food-insecure individuals in the Afar, Amhara, Tigray, and Somali regions. Additionally, $283,000 was provided to 792,000 refugees across 29 camps and sites.

In September 2024, WFP distributed $47,000 in cash assistance to 1.3 million individuals in the same regions and $285,000 to 751,000 refugees.

Another topic during the briefing was the issue of food aid diversion and the subsequent suspension of aid by the WFP in early June 2023. This decision followed allegations of a “widespread and coordinated” diversion of humanitarian supplies across Ethiopia.

The announcement by the WFP came shortly after the United States Agency for International Development (USAID) said it was halting its own aid program in Ethiopia.

The nationwide suspension by the two humanitarian organizations came after an earlier suspension in the Tigray region in mid-March 2023, prompted by significant instances of aid misappropriation.

Addressing the issue, Skau stated that the WFP took allegations of aid diversion, which first surfaced two years ago, “very seriously.” However, he acknowledged, “We had not been sufficiently monitoring post-distribution.”

Skau explained that inflated beneficiary numbers and excess food supplies, which were subsequently resold in local markets, contributed to the problem. “We should have picked that up earlier and made sure that beneficiaries were assisted,” he admitted.

The Deputy Executive Director further elaborated, “If the problem was that they had too much food and needed soap, and they resold some of their food to get money for other things, we should have made sure that they were receiving what they needed rather than having to resell the overflow of food.”

Citing an internal donor memo, Addis Standard reported in June 2023 on a widespread diversion scheme targeting donor-funded food aid in Ethiopia. Extensive monitoring conducted by USAID, the largest food aid provider to Ethiopia, revealed a “coordinated and criminal scheme” that redirected life-saving assistance away from the most vulnerable populations.

A memorandum prepared by the Humanitarian and Resilience Donor Group (HRDG) further highlighted significant misappropriation. Monitoring visits to 63 flour mills across seven of Ethiopia’s nine regions uncovered substantial diversion of USAID-funded humanitarian food commodities.

The memo attributes the scheme to federal and regional government entities, stating, “Military units across the country [are] benefiting from humanitarian assistance,” alongside private grain and flour traders and operators.

In March 2023, a field investigation by the Addis Standard team in Borana, Oromia region, documented growing allegations of corruption in local aid distribution, with portions of aid deliveries reportedly appropriated by officials.

Skau explained that the WFP has initiated three independent investigations into alleged aid diversion in the Tigray, Gambela, and Somali regions. While the investigations for Tigray and Gambela have been concluded, the investigation for the Somali region is still pending.

“The conclusions [of the investigations] is that it was systematic and done after the distribution of food aid.”

He further stated that the WFP is awaiting the final report on the Somali region investigation. “Once we have that, we will produce a comprehensive closure report from management,” he emphasized. “It’s hard for us to make definitive statements before knowing the full facts of these investigations.”

Since that time, the WFP has restructured its operations in Ethiopia, as stated by the Deputy Executive Director.

The changes encompass the regular updating of beneficiary lists, the implementation of an ID-based management system, the introduction of biometric identification, and the deployment of a QR code registration system to enhance the efficiency of aid distribution.

“We have also strengthened our third-party monitoring system and feedback mechanism,” he remarked.

In addition to his role as Deputy Executive Director, Skau also serves as the Chief Operating Officer of the WFP. In this capacity, he oversees the organization’s overall coordination, strategic direction, humanitarian diplomacy, and support for field operations. He also contributes to corporate efforts aimed at enhancing WFP’s inter-agency collaboration and partnerships.

Skau’s recent visit to Ethiopia marks his fifth trip to the country in the past 18 months. “Probably, [Ethiopia] is one of the countries I have visited most frequently in recent times,” he remarked.

Last year, his organization expressed concern over the increasing challenges it faces in ensuring the safe and timely delivery of food to Ethiopia’s most vulnerable populations.

The UN agency highlighted that the deteriorating security situation, particularly in regions such as Amhara and Oromia, has led to access difficulties, jeopardizing the safety of its staff and negatively affecting its operations.

During the briefing, Skau noted that in the past one or two years, many aid agencies have struggled, especially in the Amhara region, due to security concerns.

“There have been areas that have been closed off for extended periods due to a lack of access,” he observed. “We have had open discussions with the government, including on the security and access challenges we face in Amhara.”

Addis Standard previously reported that the ongoing conflict in the Amhara region has led to road closures, significantly hindering the timely delivery of essential food aid to drought-affected communities. Humanitarian agencies have stated that they are unable to reach the impacted populations due to the conflict between the federal government and the non-state militia group, Fano.

Recent reports also indicate that access restrictions imposed by “local militia” in the Bugna and Lasta districts of the North Wollo Zone, Amhara region, have worsened an already critical humanitarian crisis, impacting 77,000 individuals, including 10,000 who have been displaced.

According to Skau, another challenge facing humanitarian response is the lack of sufficient funding. “What do you do with the same budget when you have three times as many people in need?” he asked.

In July 2024, the WFP reported that significant funding shortfalls necessitated a 20% reduction in cereal rations for individuals residing in districts experiencing emergency levels of food insecurity and for populations residing in IDP camps.

Skau emphasized that the demand for humanitarian aid is rising globally. “In Ukraine, the Middle East, and Sudan, the list is quite long,” he noted.

As a result, Skau stated that WFP’s engagement in Ethiopia will be “as targeted and efficient as possible.” AS

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Editor’s Note: This article has been revised to provide clarity on the timing of the aid diversion allegations.