Market Systems Analysis: Azraq and Za' atari Refugee Camps in Jordan

2022

English

29 p.

WFPVCA016

WFP’s assistance in refugee camps is one of the major pillars of humanitarian assistance in Za’atari and Azraq refugee camps in Jordan. The current transfer modality in both camps is e-value vouchers where beneficiaries use a voucher to buy food items at WFP contracted shops. Given that the markets in both camps have been evolving over the past 10 years, and with the country office’s potential plan to change the transfer modality to unrestricted cash, there is a need to better understand the market functionality and preparedness required to ensure the transition to unrestricted cash assistance. This Market System Analysis (MSA) was conducted to better understanding the root causes behind the limited functionality of the informal markets in both refugee camps. The MSA recommends a set of Market Development Activities that aim to enhance the market environment of the informal markets in the refugee camps. The recommendations take into consideration two different cash transfer modality scenarios: 1. value voucher, and 2. unrestricted cash. In Za’atari camp the market is not regulated andraders do not need a license. The number of food shops is large (330 shops), however most of these shops sell confectionary products, and do not sell essential commodities. The report highlights the prices and markups of different commodities along the supply chain. The prices of packaged products in WFP contracted shops are higher than the average prices of the informal market and higher than prices in local shops outside the camp. In Azraq camp there 50 food shops. Traders in the camps operate in a formal and organized structure, and their main supply source are wholesalers. Selling on credit to beneficiaries is one of the main challenges that was highlighted in both camps with beneficiaries’ unable to pay their debt to informal/small shops. Looking at the different market constrains in both camps, and beneficiaries’ obvious desire for cash and to have freedom of choice, the country office’s plan to move to unrestricted cash will address part of the constraints highlighted in this report. However, this needs to be addressed in parallel with other market development activities that can enhance the capacities of the informal market traders in Za’atri camp, and small shops in Azraq camp. This means that WFP will need to work closely with retailers to build their business capacities, improve their linkages with the external market actors, and improve their demand aggregation and trading coordination.

MSA

VCA 016

eng

DOC-126418