Cash based interventions and the growth of community markets in refugee settlements in Uganda : a case of Western Uganda

Abstract

The purpose of this study was to investigate the relationship between cash-based interventions (CBIs) and the growth of community markets in western Uganda. The study adopted a cross-sectional research design. Data was collected through a questionnaire survey of 250 respondents from a population of 750 which was derived using the Krejcie and Morgan, (1970) table of determining sample size from Rwamwanja and Kyangwali refugee settlements. Results indicated that there is a significant relationship between Conditional Cash transfers and the growth of community markets with (r=0.417**, p<0.01), for profitability and (r=0.040, p<0.01,) for Liquidity the significance was achieved at a level of (sig.0.000) and responses from respondents further confirmed it. The study also revealed that there was a significant positive relationship between unconditional cash transfers and growth of community markets (r=0.622**, p<0.01) for profitability and, (r=0.067, p<0.01) for Liquidity, individual responses further revealed this. The findings revealed that there was a negative relationship between voucher transfers and profitability (r=-0.081**, p<0.01), and a positive relation between voucher transfers and liquidity (r=0.119, p<0.01). The findings also showed a strong association of the legal environment on the growth of community markets this was evidenced by (r=0.618**, p<0.01) and (r=0.234, p<0.01) for profitability and liquidity respectively. This information showed that CBIs coupled with favourable legal environment lead to growth of community markets as it is in Kyangwali and Rwamwanja refugee settlements. A regression analysis was conducted to determine the strength of the relationship revealed an R-value of (0.763) and R2 of 0.582 (58.2%) for conditional cash transfers, R (0.262a), and R2 of 0.069 (6.9%) for unconditional cash transfers. The study recommended organizations involved in cash-based transfers to use more of unconditional cash transfer as a modality of transfer as it offers flexibility and freedom of investment in different businesses hence leading to the growth of community markets. This study is significant to researchers, donors, and organization that do cash-based interventions/ programming and the findings will help organizations on determining the most appropriate mode of transfers to focus on most when giving, when extending cash-based interventions.