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More news from Reuters

WFP launches phone cash transfers to reach Ivorians

Tue, 4 Oct 2011 16:15 GMT

Source: alertnet // George Fominyen

A cyclist passes in front of a mobile "phone booth" in Ivory Coast's economic capital Abidjan on Thursday October, 27 2005. REUTERS/Thierry Gouegnon

By George Fominyen

DAKAR (AlertNet) The U.N. World Food Programme has started using mobile phone technology to facilitate cash transfers to 54,000 people living in poor districts of Ivory Coast’s main city Abidjan to buy food, the agency said on Tuesday.

Thousands of households in the districts of Abobo and Yopougon will receive an SMS text message on their mobiles alerting them to the transaction and allowing them to withdraw money from local cash points of the telecoms provider Mobile Telecommunications Network (MTN).

The impoverished districts were badly hit during the violence that followed last November's presidential elections which lasted until the arrest of former President Laurent Gbagbo in April. Gbagbo had refused to cede power to President Alassane Ouattara who won the polls according to U.N.-certified results.

Many families lost their livelihoods during the crisis and have been unable to pay for food in local markets.

“This innovative method of payment is particularly suited to households with low purchasing power,” WFP's country director Alain Cordeil said in a statement.

Although WFP has run cash transfer programmes in urban areas in other parts of West Africa including Burkina Faso and Senegal, it is the first time the agency has used a mobile service provider as a partner.

When a beneficiary receives a text message on their mobile phone alerting them that cash is available, they have to dial in a personal code (provided by WFP) to confirm receipt. They can then go to any MTN kiosk in Abidjan where they can withdraw cash on showing their WFP beneficiary card.

A WFP official said people could also get their money through any Societe Generale bank in the city or purchase goods directly from one of WFP's partner shops.

Each household will receive $75 per month, which is equivalent to the food basket of an average family of five, Cordeil said.

 

 

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