Program Design for Tigray: Transitioning from Emergency Aid to Sustainable Livelihoods

This program aims to move vulnerable households in Tigray from emergency cash transfers and food aid toward self-sufficient, diversified livelihoods, following a phased approach. By integrating elements from Somalia’s safety net models, it addresses immediate needs while building resilience, enhancing capabilities, and ensuring long-term sustainability. Key features include a focus on human agency, community resilience, and strengthening government and NGO capacities to deliver targeted, cost-effective programs. The goal is to empower households to "graduate" from dependence on emergency aid by developing dynamic and inherent capabilities.

1. Target Population

A. Internally Displaced Persons (IDPs)

- Focus on IDPs displaced due to conflict in Tigray, especially those in informal settlements.

- Prioritize households that have migrated from rural to urban areas, as they face severe livelihood disruptions.

B. Vulnerable Groups

- Female-Headed Households: These households often face increased financial and social vulnerability, requiring additional support for income generation.

- Persons with Disabilities: Ensure that the program is inclusive and accessible to people with disabilities by tailoring interventions to their specific needs.

- Chronically Poor Households: These are labor-deficit households that may be unable to work or are too vulnerable to participate in traditional livelihood activities. They will need long-term cash transfers with no immediate expectation of transition to employment.

C. Special Consideration for Marginalized Groups

- Include ethnic minorities, youth, and older adults who face heightened vulnerabilities in Tigray.

2. Program Objectives

Primary Goals:

- Livelihood Diversification: Equip participants with the skills, resources, and market access needed to diversify their income sources, reducing dependency on emergency aid.

- Graduation and Sustainability: Create clear pathways for households to transition from emergency cash transfers to sustainable livelihoods, ensuring lasting poverty reduction and improved well-being.

- Building Resilience: Strengthen individual, household, and community-level resilience against future shocks, including wars, climate change, and market fluctuations.

Secondary Goals:

- Strengthen Government and NGO Capacity: Build local capacity to implement, monitor, and evaluate safety net programs, ensuring that they are responsive, adaptable, and aligned with broader economic goals.

- Enhance Social Cohesion: Foster stronger ties between IDPs and host communities, building social capital and reducing conflict.

3. Program Components

A. Immediate Support Through Cash Transfers

- Emergency Cash Transfers (0-24 Months): Provide immediate financial relief to vulnerable households, helping them meet basic needs (food, shelter, medical care) during the recovery phase. Focus on IDPs, women-headed households, and chronically poor households. Cash transfers are delivered digitally or in cash, depending on access to banking services.

- Long-Term Safety Nets (Beyond 24 Months): 

Urban and Semi-Urban Safety Nets: Targeted at households that are transitioning from emergency aid to sustainable livelihoods but require continued support. Households in rural areas can receive agricultural assistance, while those in urban and peri-urban areas are integrated into business or vocational training programs.

B. Livelihood Development Programs: To ensure households can build sustainable livelihoods, the program includes:

1. Skill Development and Training

   - Foundational Skills: Literacy, numeracy, and basic financial literacy are provided early in the program to ensure participants are ready for more advanced training.

   - Technical Training and Vocational Skills: Offer skill-building in agriculture, small-scale manufacturing, and services. Areas of focus include:

      - Agriculture and Horticulture: Support for vegetable production, processing, and marketing. Farmers are trained in climate-smart agriculture practices to ensure long-term sustainability and resilience.

      - Small Enterprises: Vocational training for urban participants in areas such as carpentry, tailoring, cooking, and food processing. The program includes coaching in entrepreneurship, business management, and marketing skills.

      - Digital Skills: Integrate digital literacy into the program to help participants access e-commerce platforms, job opportunities, and financial services.

2. Business Incubation and Start-Up Grants

   - For households ready to start small businesses, the program offers:

      - Start-Up Grants: Financial assistance to launch micro-enterprises, accompanied by mentoring and business advisory services.

      - Incubation Services: Access to business incubators, which provide coaching, financial management training, and links to local markets and suppliers.

      - Microfinance: Collaborate with local financial institutions to provide small loans to entrepreneurs and business owners, coupled with financial literacy training to ensure responsible use of credit.

3. Job Placement and Employment Services

   - Establish partnerships with local businesses and industries to place program participants into jobs that align with their skills and training.

   - Use digital platforms to match job seekers with employers and facilitate connections between local businesses and vocational graduates.

C. Social Capital and Resilience Building

- Community Cohesion Programs: Foster relationships between displaced persons and host communities through joint economic ventures, shared agricultural projects, and social entrepreneurship initiatives.

   - Example: Create cooperatives that allow IDPs and host community members to jointly invest in agricultural production or small enterprises.

- Trauma Counseling and Psychosocial Support:

   - Provide counseling services to help participants cope with trauma related to conflict and displacement.

   - Offer mentoring programs to build personal resilience and provide emotional and psychological support during the transition from emergency aid.

- Security and Personal Safety Measures:

   - Implement programs aimed at improving safety within communities, particularly for women and children, who may face increased risks of domestic violence and exploitation.

4. Government and NGO Capacity Building

The success of this program depends on building strong local institutions that can implement and sustain safety net programs.

A. Government Capacity Development

- Training for Local Officials: Provide comprehensive training on program management, monitoring and evaluation, and adaptive governance.

- Digital Solutions for Program Delivery: Strengthen the capacity of government agencies to use digital tools for delivering cash transfers, tracking progress, and linking participants to job markets and social services.

B. Collaboration with NGOs

- Capacity Building for NGOs: Equip local NGOs with the tools, knowledge, and resources to deliver targeted livelihood support and monitor household progress.

- Partnerships with Service Providers: Develop partnerships with NGOs specializing in health, education, and vocational training to deliver services directly to program participants.

5. Graduation Strategy and Transition Support

A. Phased Transition (24-36 Months)

The program will follow a phased approach, with regular assessments to determine households’ readiness to transition from cash transfers to self-sufficient livelihoods. Key indicators include:

- Income stability and diversification.

- Ability to meet basic needs without reliance on cash transfers.

- Participation in social and economic networks that provide security.

B. Supporting “Late Improvers” and “Decliners”

- Households that struggle to transition out of cash transfers ("late improvers" and "decliners") will receive additional support:

   - Extended Cash Transfers: Provide continued financial assistance to ensure that households can continue to build capacity.

   - Targeted Livelihood Support: Offer tailored support based on specific challenges, such as further vocational training, mentoring, or access to credit.

   - Post-Transition Mentoring: Provide follow-up support to help households navigate the early stages of independence, including business advisory services and access to markets.

6. Enabling Conditions and System Strengthening

A. Strengthening Market Access and Financial Inclusion

- Microfinance Partnerships: Work with local banks and financial institutions to develop micro-loans and financial literacy programs for participants, helping them manage their finances and access capital for business development.

- Business Development Services: Provide access to market information, networking opportunities, and digital platforms that connect participants to suppliers, customers, and potential employers.

B. Digital Solutions

- Implement digital tools to deliver cash transfers, track program progress, and provide job placement services.

- Use mobile banking platforms to ensure that even participants in remote areas can receive payments and access financial services.

C. Health and Well-Being Services

- Collaborate with local health providers to improve access to physical and mental health services for program participants.

- Ensure that services are readily accessible to vulnerable households, including trauma counseling and mental health support.

7. Monitoring and Evaluation

To ensure the program’s effectiveness and cost-efficiency, a comprehensive monitoring and evaluation system will be implemented, focusing on both process and impact indicators.

Key Performance Indicators (KPIs):

- Transition Rates: The percentage of households that successfully transition from emergency cash transfers to sustainable livelihoods.

- Income and Livelihood Diversification: The number of households that have diversified their income sources.

- Resilience to Shocks: The ability of households to cope with economic, social, and environmental shocks without falling back into poverty.

Evaluation Stages:

1. Baseline Assessment: Conducted before the program begins to establish household conditions, capabilities, and vulnerabilities.

2. Mid-Term Review: Conducted midway through the program to assess progress, identify bottlenecks, and make necessary adjustments.

3. Final Evaluation: Conducted at the end of the program to measure impact, focusing on income improvements, livelihood sustainability, and resilience.

8. Strategic Alliances

The program will rely on strong alliances with international donors, local governments, NGOs, financial institutions, and private sector partners to ensure broad-based support and resources for implementation.