©FAO

Somalia continues to face more frequent climate related crises like droughts and floods linked to climate change, leaving a large part of its population vulnerable. Communities struggle to grow food sustainably, relying on limited livelihoods.  Predictably, these livelihoods are often vulnerable to these disasters.  This leads to severe food shortages forcing many to abandon their homes and lose their means of living.  Urban areas consistently shoulder the burden of this displacement, strained by the surging population and unable to adequately meet the demands of the ever-increasing populace. As a result, the country heavily depends on humanitarian aid, leaving its economy vulnerable to global and regional shocks. 

To combat this challenge, the Food and Agriculture Organization (FAO) is implementing the Long-Term Cash and Livelihood Assistance Programme. This initiative aims to provide immediate relief in areas experiencing persistent food insecurity, specifically focusing on the most vulnerable recipients who previously benefited from emergency cash aid. The primary goal is to disrupt the cycle of households returning to acute food scarcity after emergency interventions, establishing a connection between immediate relief efforts and long-term development strategies. By preventing further displacements, this initiative targets vulnerable households, especially in areas like the Dolow district, where food insecurity remains a recurring issue. 

Funded by the United States Agency for International Development (USAID), the programme combines long-term cash assistance with additional support measures, including the formation of Village Savings and Loans Association groups (VSLAs), nutrition sensitization, and livelihood diversification training, Long. Term Cash support helps households cover their essential needs, while the training and savings element empowers them to adopt effective saving and investment practices, enabling better preparation or absorption of unexpected shocks.

The formation of VSALs seeks to realize an increase in household savings, investments, and, therefore, income through value addition on products to increase their demand, supply, and availability in the market. Increased access to savings and credit facilities has proven to be key in reducing the impact of shocks and in increasing household income diversification. Through this facility, communities can build financial resources, foster a culture of savings, and create networks of trust. 

Using the group platforms, members meet weekly and are trained to save by purchasing shares at an agreed price per share. Adhering to religious ethos, the accumulated amount is disbursed as interest-free loans. Members are responsible for repayment within a set period. Members are also encouraged to contribute to a social fund that serves as insurance for the VSLA members during emergencies. 

"The Long-Term Cash assistance has enabled me to provide for my family while affording me the opportunity to increase my income, as I have been able to adopt effective saving practices, which were previously unfamiliar to me. I am now planning to invest in my own business thanks to the programme," said Kaltumo Ali Nur, one of the beneficiaries of the Long-Term Cash Programme. 

In her residence in Garasow Bore, Dolow district, Kaltumo sits surrounded by four of her ten children. She credits the program for ensuring that her children had enough food to eat and clothes to wear.  Kaltumo's household, being vulnerable, was a primary focus of the program, which specifically prioritizes support for disabled individuals, the elderly, and other vulnerable groups like orphaned children raised by single parents. According to Kaltumo, the monthly payments from the programme enabled her to purchase essential items for her children and even participate in a merry-go-round savings program she joined. "The assistance from FAO has been very beneficial to us. We saved some money using ayuuto (merry-go-round) savings,” said Kaltumo. “People with urgent needs can borrow from the merry-go-round fund and repay it later. So, we opened that account with the money we received, and we also use it for various other purposes. The merry-go-round fund serves as a lifeline for those in need,” she added. 

The USAID-funded programme has extended its reach to other rural communities across the 15 selected districts nationwide. We supported 13 292 vulnerable agro-pastoral households who were identified, selected, and verified according to the programme's criteria. "We selected households identified in the FAO database as the most vulnerable and in need of such intervention, said Fikirini Mwimbe, FAO's Social and Financial Inclusion Specialist. “This is why we gave priority to groups like women-headed households, internally displaced households, those with disabled members, and the elderly,” she added. 

"FAO assistance has helped the village at the time of the famine. If they hadn't come with cash transfer, people would have been displaced by now," said Osman Abdullahi, another beneficiary from Garasow Bore village. 

The Transitional Cash and Livelihood Programme has offered a safety net and long-term strategies to bolster the resilience of communities in Somalia, recognizing that most rural families struggle to withstand shocks like droughts.