MACRO FINANCIAL SECTOR ASSESSMENT FOR CASHBASED TRANSFER INTERVENTIONS IN ETHIOPIA

Displacements due to conflict along the borders of the regions of Ethiopia together with recurring
drought has left millions of the Ethiopian population requiring emergency food assistance.
Ethiopia is also hosting hundreds of thousands of refugees from its neighbours. In collaboration
with aid agencies, Ethiopia supports its vulnerable population in saving lives with food assistance
to empower women, transform areas affected by natural and man-made disasters and keep children
in school. Currently, Ethiopia is increasingly combining traditional food assistance with Cash-
Based Transfer (CBT). In CBT intervention, the role of Financial Service Providers (FSP) is
paramount to reach beneficiaries through cash benefit. Many research works were carried out on
cash intervention programmes in Ethiopia. However, much focus has not been given to assess the
extent to which the FSP in Ethiopia can support the cash benefit distribution. The financial sector
in Ethiopia is emerging and developing in terms of service offer coverage, competition, and
technological advancement.