Somalia - Humanitarian Funding Not Keeping Pace With Rising

UNCLAS SECTION 01 OF 02 NAIROBI 000708

SENSITIVE
SIPDIS
AIDAC

USAID/DCHA FOR EKVITASHVILI
DCHA/OFDA FOR ACONVERY, KCHANNELL,
DCHA/FFP FOR JBORNS, JDWORKEN, PMOHAN
AFR/EA FOR CTHOMPSON, JCICCARONE
STATE FOR AF/E AND PRM
USUN FOR DMERCADO
BRUSSELS FOR PBROWN
GENEVA FOR NKYLOH
USMISSION UN ROME FOR HSPANOS

E.O. 12958: N/A
TAGS: EAID PHUM PREL PREF SO

SUBJECT: Somalia - Humanitarian Funding Not Keeping Pace With Rising
Needs

NAIROBI 00000708 001.2 OF 002


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Summary
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1. (SBU) At the end of March 2009, contributions to the U.N.-led
Common Appeals Process (CAP) stood at $251 of the $918 million
requested for humanitarian operations in Somalia. Food aid accounts
for $200 million of this received amount, leading to an imbalance in
the response. Several sectors have received no funding so far.
Virtually no livelihood assistance is targeted to the severely
drought-affected central regions. Despite increased needs, donors
forecast lower funding levels this year. Significant additional
needs have cropped up, including expanded water trucking, return of
displaced persons to Mogadishu, rehabilitation of Mogadishu Port,
and ongoing treatment for severely malnourished children. USG
humanitarian funding is frozen and could stop as debate over the
need for an OFAC license hinders the USG's ability to respond to the
ongoing humanitarian crisis. End Summary.


2. (SBU) At a recent humanitarian donor briefing, United Nations
(U.N.) and non-governmental organization (NGO) officials provided an
update on humanitarian funding through the annual U.N.-led Common
Appeals Process (CAP) which is the primary mechanism for donor
funding to humanitarian operations for Somalia.


3. (SBU) During March 2009, contributions increased significantly
from $173 million to $251 million of a requested $918 million for

2009. These contributions represent 26 percent of requested needs,
slightly less than the 27 percent level of funding for CAPs
worldwide. [Comment: Funding via USAID's Office of Foreign Disaster
Assistance (OFDA) for NGOs is provided outside the CAP mechanism.]
Although overall levels of assistance have increased relative to
this time last year, the CAP also increased from the $641 million in
2008 in response to a 56 percent increase in Somalis requiring
humanitarian aid (from 1.8 to 3.2 million over the course of the
year).


4. (SBU) However, the funding received is heavily skewed towards
food aid, which represents 79 percent ($200 million) of the total.
Non-food aid sectors received the remaining 21 percent ($51
million).


5. (SBU) Further, several non-food sectors have received no funding,
including shelter/non-food items, education, and security. Critical
sectors, including water, sanitation, hygiene (WASH),and health are
funded at two percent and three percent respectively. Poor water,
sanitation and health practices, as well as limited access to health
care impede recovery from malnutrition. USAID's separate fund
streams for emergency food aid (primarily via USAID's Office of Food
for Peace) and non-food aid (primarily via USAID/OFDA) contribute to
this globally recognized problem.


6. (SBU) After food (which is funded at 33 percent of requested
levels),nutrition is the next best-funded at 23 percent, followed
by agriculture/livelihoods at nine percent. UN/NGO officials point
out that due to donor earmarking on projects, virtually no
livelihood assistance is targeted to the severely drought-affected
central regions. We are saving lives but not livelihoods which will
necessitate more costly, longer-term humanitarian interventions to
cope with the deepening impoverishment of this population.


7. (SBU) Although the humanitarian situation has not changed
dramatically from last year, UN/NGO officials lament that donor
resources are not keeping pace with needs. In part, this is due to
currency depreciation (especially for European donors) and the fact
that many donors received supplemental funding last year for the
global food and fuel price increase which allowed for a robust
humanitarian response. Donors are not anticipating the same levels
of funding this year.


8. (SBU) The various sectors continue to skate by on carry-over

NAIROBI 00000708 002.2 OF 002


funding from 2008 and through various mechanisms such as the U.N.'s
Central Emergency Revolving Fund (CERF) designed for quick responses
by U.N. agencies and NGOs, and the U.N.'s Humanitarian Response Fund
(HRF),designed primarily to fund small-scale activities by local
Somali organizations. Officials caution that using (or rather
abusing) these mechanisms to compensate inadequate funding will
reduce flexibility to respond to unanticipated needs later in the
year.


9. (SBU) These officials further noted that the CAP planned for a
reduction in water trucking - an expensive and unsustainable
live-saving activity - but due to the continued severity of the
drought, water trucking is increasing to nearly 700,000 Somalis.
Further, the Transitional Federal Government (TFG) has prioritized
the return of nearly one million displaced persons to Mogadishu,
which will require significant aid to rehabilitate war-damaged
structures, restart basic social services, and rebuild livelihoods.
WFP has requested USAID funding to rehabilitate Mogadishu Port, in
order to improve the delivery of humanitarian aid and commercial
shipments, which would also increase TFG tax revenue. On the
nutrition front, U.N. officials estimate that only 20 percent of
severely malnourished children are receiving treatment.
Under-funding of an already inadequate response will have
repercussions on the well-being of these children for a lifetime,
hindering their ability to contribute to Somalia's future.


10. (SBU) USG humanitarian funding is currently frozen as USAID, the
Department of State, and Department of Treasury discuss the need for
a waiver from Treasury's Office of Foreign Assets Control (OFAC) in
light of the USG's designation of al Shabaab as a terrorist
organization. The possibility of assistance via al-Shabaab can be
minimized but not eliminated completely. USAID has forecast that
humanitarian aid could be halted if a waiver cannot be obtained.
That would have a devastating impact on the 3.2 million Somalis in
need of life-saving assistance.

RANNEBERGER