Abstract:
Poverty remains a critical global issue, but despite extensive research at national and regional
levels, there is a lack of micro-level, district-specific studies on rural poverty in areas like Sheikh
District, Somaliland. This study analyzes rural poverty levels in Sheikh District, Sahil Region of
Somaliland. It focuses on poverty incidence, depth, severity, and its key determinants. A multistage sampling technique was used to select 200 households in Sheikh District, with four Tuulos
randomly selected from the district's 43 agro-pastoral Tuulos. The study utilized both primary
and secondary data. Primary data were gathered through household surveys, key informant
interviews, focus group discussions, and direct field observations, while secondary data were
obtained from published and unpublished sources, including government reports, international
NGOs, regional studies, and existing surveys. Descriptive, inferential, and econometric models
were employed to analyze cross-sectional data collected from the region. The Foster-GreerThorbecke (FGT) index was used to measure rural poverty level of households, while a logit
model was used to identify the main drivers of rural poverty level. The FGT analysis found that
46.5% of the households live below the poverty line, 26.65% experience significant poverty gaps,
and 16.27% show high poverty intensity. The logit econometric model result indicates that
access to education, household size in terms of adult equivalent ration, off-farm income, total
livestock units (TLU), and on-farm income are crucial factors influencing household level
poverty. Education of household head, TLU, off-farm, and on-farm income reduce probability
being poor (poverty level), while larger household size increases being poor. Total livestock
units (TLU), household size in terms of adult equivalent ration, and on-farm income were significant factors affecting rural household poverty at 1% level of precision whereas education
level is significant at 5% level of precision. Off-farm income was less significantly affecting rural
household poverty at 10% level of precision. The study recommends improving education,
diversifying income sources, and enhancing livestock management, o improve rural household
income and reduce poverty level in the study area.
