DETERMINANTS OF RURAL HOUSEHOLDS’ POVERTY IN SHEIKH DISTRICT OF SAHIL REGION, SOMALILAND

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focus group discussions, and direct field observations, while secondary data were obtained from published and unpublished sources, including government reports, international NGOs, regional studies, and existing surveys.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.