Transfers as a Means to Mitigate COVID-19 Impacts on Food Security: Evidence from Refugee and Host Communities Uganda

Abstract

Uganda is home to some 1.5 million refugees. Its self-reliance policy welcomes refugees with freedom of movement and work; a piece of land for building a house and home-gardening; and social protection (food and cash transfers). While a progressive refugee policy, the onset of COVID-19 may complicate its effectiveness. This paper investigates the role of food and cash transfers in meeting negative consequences of the pandemic for both host and refugee communities. We do so by using a unique panel dataset covering the period from 2019 to 2021. Our evidence suggests that although transfers were widely used in refugee settlements prior to COVID-19, their use did not expand within the refugee nor host communities at the onset of the pandemic and, in fact, the transfer amounts declined. The evidence does not suggest that either form of transfer has a strong effect on food security or resilience although there is some evidence that cash transfers facilitate resilience. However, food transfers are associated with maintaining or increasing food security while cash transfers are more closely associated with resilience. Furthermore, food transfer seem to outperform cash transfers in responding to COVID-19 particularly when income loss due to COVID-19 is reported.