Layering cash into market systems programs

The Feed the Future Nigeria Rural Resilience Activity (RRA) is an MSD programme aiming to move people out of chronic vulnerability and poverty in conflict-affected areas by expanding economic opportunities and strengthening resilience capacities in North Eastern Nigeria (NEN) and North Central Nigeria.

In response to COVID-19, RRA layered on a short-term cash transfer activity to help households cope, jumpstart local economies, and prevent further backsliding among the businesses that marginalised groups rely on most.

This combination of approaches enabled Mercy Corps to assess the impact that cash transfers can have on MSD programming, including both operational lessons and insights into how cash affects market actor incentives and behaviour.

The brief highlights:

• The positive impact of Northeast Nigeria’s short-term cash response, particularly in improving coping and recovery for marginalised groups,
• The importance of pre-existing market knowledge, networks, and partnerships to the design and impact of humanitarian interventions,
• Operational lessons for implementing direct-delivery interventions alongside market facilitation strategies, and
• Ideas for how to leverage cash responses to support inclusive change in local economies.

Intervention description

Specific interventions included the distribution of unconditional cash transfers (UCTs) to 47,387 farmers, 5,560 micro, small, and medium enterprises (MSMEs), and 85 key intermediary actors. The programme also facilitated access to finance, supported business development services and provided training on improved agricultural practices.

By the end of the programme, 19,602 new bank accounts were opened, and 53,032 recipients received cash transfers (page 10). The UCTs were seen as a necessary response to the economic devastation caused by COVID-19, helping to stabilise household incomes and support business recovery.
 

Evidence methodology

The evaluation used a qualitative approach, including interviews with 39 stakeholders, such as programme partners, private sector actors and donors. Data collection involved assessing the economic impact of UCTs through direct feedback from beneficiaries and analysing the effectiveness of integrating cash transfers into MSD programming. The evaluation aimed to understand the appropriateness of UCTs within an MSD framework and their impact on market functionality and resilience.