Review of Cash Transfer Modalities

Afghanistan is a disaster-prone country that is one of the world’s most complex humanitarian emergencies. Entering its 18th year of crisis, two out of three Afghan live in areas directly affected by conflict. In 2019, it is expected that 6.3 million people will need some form of humanitarian and protection assistance, almost double from 2018. To respond to humanitarian needs, Cash Based Assistance (CBA) in Afghanistan is used by a range of actors across different sectors. CBA supports conflict and natural disaster-affected internally displaced persons and returnees. 71% of beneficiaries express a preference for cash-only. The European Civil Protection and Humanitarian Aid Operation (ECHO) began funding an Emergency Response Mechanism (ERM) in 2011; it provides most of its assistance through Multi-Purpose Cash Grants (MPCG). 

This review examines the use of CBA in Afghanistan, with the purpose of mapping its current uses, determining the capacity of payment agents, comparing perceived modality-specific risks, and reviewing existing management information systems.