Private sector and

humanitarian crisis
 Approach

 Oxfam International recognises that the private

sector is vital to delivering growth and creating
wealth and that corporations can play an
important role in reducing poverty.

 Use of expertise and expert staff to volunteer

their skills

 Corporate support for our work is very important

and Oxfam works hard to find it. However as a
rights based organisation we adopt a careful
approach when choosing whether or not to
engage with a corporation.
Oxfam’s position on PS and humanitarian
relief

– a two-way open and honest dialogue between the

Private Sector and the NGO community
– Private Sector and NGO Sector should aim to establish
partnerships and engagement prior to an emergency and
not just when an emergency occurs.
– relationship does not need to be between partners of
identical values but can work where there is a common
interest in meeting a particular goal.
- necessarily the exit strategy of the relationship needs to
be considered, as this will impact on the sustainability
of any projects.
– It is important to be aware of other linkages the private
sector partner may have, such as supplying military –
especially in the field of operations.
Principles related to Private Sector involvement in
Humanitarian Relief work.

 Private Sector and NGO sector are fully accountable to all

stakeholders including beneficiaries and that the aid
delivered is meeting objectively assessed beneficiary needs.
 while all parties may benefit directly or indirectly from the
engagement, the fundamental and overriding shared goal of
the engagement is to have direct and positive impact on the
needs of the beneficiaries.
 Oxfam encourages Private Sector companies with which it
engages in Humanitarian Relief work to learn and internalize
the norms of the humanitarian sector such as quality
standards .
 Private sector companies, especially those implementing
front line delivery programmes, coordinate with the relevant
government, local authorities and other relevant
humanitarian actors .
 Somalia case

 Somalia is the most severe and complex crisis in the

world. an estimated 2.4 million people in Somalia are in
Humanitarian Emergency and Acute Food and
Livelihoods Crisis.

 Nutrition rates are amongst the worst in the world with

one in five children being malnourished

 Humanitarian workers are increasingly targeted for

ideological reasons and are also caught in the random,
unpredictable violence of Somalia.

 Humanitarian access is extremely limited, and even

local NGOs and civil society leaders are being targeted
PROCESS
 Because of access and insecurity of aid agencies, Oxfam
team thought of plan ‘B’ of delivering humanitarian aid in most
constrained areas.
 Remittance companies were identified as potential alternative
partners in aid delivery.
 A risk assessment of remittance companies conducted in 2008.
Which provided a reasonable recommendation to work with
remittance companies as an alternative way of working.
 Training of the private sector staff community mobilisation,
humanitarian principles, basic minimum standards (market
analysis, food basket calculations) cash transfer targeting of
beneficiaries, beyond just cash distribution – registration,
verification, ID cards, pay rolls, use of monitoring tools-pre and
post cash distribution
 Imbedding of Oxfam GB staff within the private sector
companies to maximise on their high acceptance and security
enjoyed to facilitate supervision, monitoring and mentoring.
 Small scale pilot projects have been conducted in Mogadishu-
Afgooye Corridor that demonstrated private sectors ability to
engage and easily scale up
Findings from assessments
 Remittance companies remain a natural choice within private sector
due to past work as service providers to distribute cash grants and
cash for work payments,
 This private sector actors are still very active even in highly
insecure still very active in highly insecure environments of south
Somalia
 They undertake charitable activities on their own and working
through remittance companies was feasible
 providers charitable activities undertaking making it feasible to work
through private sector in the delivery of cash for work payments in.
 Though obvious difference exist in ways of working between Oxfam
and Private Sector companies the maximisation on common interests
and opportunities to scale up on core business competence
encourages accountability and effective aid delivery.
 Partner private sector companies provided comparative advantages
in efficiency and untapped potential to delivery humanitarian
assistance to scale beyond humanitarian agencies
 Sharing of key drivers of work- basic principles and values around
 BENEFITS
 Cost effectiveness- the overall operation cost is maximum of 15% while
using NGO partners/Oxfam Staff cost up to 25-30%.
 Opening up of credit lines for the poor
 Provide food on the table for the most vulnerable groups
 Re-open up the market- cash injection to stabilise the market , repayment
of debts, opening up of new business that has collapsed due to lack of
incomes and employment
 Engagement of private sector in humanitarian aid delivery will help them
develop better ways of handling funds used for corporate social
responsibility as well as raise funds for undertaking humanitarian
assistance from their huge network of clients
 Able to reach the right target groups even with the overwhelming demand
for consideration from many people befitting the set criteria who could not
be included as beneficiaries due to limited funding.
 The approach of using the private sector has provided an alternative way
of delivering cash aid in insecure areas without losing out on the basic
principles
 It been proved it is feasible to work with remittance companies to deliver
cash in insecure environments, have demonstrated the speed and ability to
mobilise target beneficiaries using their agents and branches as well as
ability to provide the service at project sites
 The narrowing of the targeting bracket allows the most vulnerable to be
selected
RISKS

 Targeting of most vulnerable with the limited

resources available. The private sector
companies have always provided support at hard
times as gifts which used blanket distribution
mechanisms and low level of accountability.

 Engagement of the private sector in humanitarian

space and values could narrow their ability to
work in insecure environments

 Private sector profit making vs humanitarianism

RISK MANAGEMENT
 Learning from pilot experience
 Rely on strong monitoring and evaluation systems
 The culture of possibility of targeting the poorest of poor
has allows the private sector to channel merger resources
to most needy, touching the hearts of the private sector
staff of wonders of their work and difference it is making
and hence has encouraged them to understand better risk
assessment and security analysis
 Cash transfer targeting mechanism has provided the private
sector staff with extra accountability and transparency
skills to tighten the loop-holes; counterchecking payment
vouchers against beneficiaries lists and pay rolls.
 Training of the company staff in humanitarian principles
and values added a greater value to build shared respect to
poor people.
 Remittance companies work is based on gifts from member
of a family to another one. Thus they are one step closer to
our mission.