Money in hand for smarter aid

Oxfam is investing in digital aid solutions for a more effective response to humanitarian disasters.

Water cans and boxes of food on truck beds. This is how we are used to seeing humanitarian aid being delivered. But when disaster strikes and the world's technology becomes more advanced, it's important for the aid world to keep up. A new way to distribute aid money is to transfer money digitally to a phone. Money in your pocket is a more non-traditional way of delivering aid, but has proven to be a more effective way to help directly where it is needed.

Oxfam is now focusing on distributing cash digitally to help combat the ongoing drought in Kenya, and in Somaliland, where 1,750 families affected in early May received $1,200 each to cover their most critical needs for 3 months. Distributing aid in the form of cash allows the recipient to actively determine where their needs lie. All that is needed is a phone with a SIM card linked to an account and a functioning mobile network.

"We can decide ourselves and buy the amount of food and water we need or invest in feed for our lamb or education for the children," says a man in Somaliland, where Oxfam is currently working to improve the situation of those affected by the severe drought.

The benefits are many

With digital cash transfers, aid agencies can avoid cumbersome logistics and deliver assistance faster, especially in hard-to-reach areas. A study conducted by the Cash Learning Partnership in 2015 shows that humanitarian assistance in the form of cash is 30% cheaper to deliver compared to other types of donations. As cash distribution becomes more common, prices are likely to decrease further in the future.

"We believe that the objectives of humanitarian work - to respond to urgent needs while contributing to long-term economic improvement and increased resilience of disaster-affected populations - are most effectively and sustainably achieved by working through existing structures to strengthen local capacity."

Philippa Young, food security expert at Oxfam.

For over 20 years, Oxfam has been using cash grants in response to immediate and long-term needs in crisis situations, a trend that continues to grow. Since 2005, Oxfam has provided over £1 billion in humanitarian cash grants to the most vulnerable people around the world.