Livelihood Diversification in the Boricha District of Sidama Region, Ethiopia: Strategies and Determinants

Abstract

Livelihood diversification is essential to reduce risks as well as supplement the unstable scanty agricultural-based livelihood activities. This study aimed to examine farmer's main livelihood diversification strategies and their determinants in Boricha district of Sidama Region, Ethiopia. To collect primary data a multi-stage sampling procedure were applied and 286 sample households were selected through randomly sampling techniques. Data were collected through surveys, interviews, focus groups, observations, and reports. The collected data were analyzed by using descriptive statistics and multinomial logit model. The descriptive findings reveal that more than half of sampled households (50%) combine on-farm with off-farm and non-farm livelihood activities. The result further showed that households involved in off-farm and non-farm activities were not taken as the primary sources of livelihoods, but taken as an alternative means of income generation in additional to on-farm livelihood activities. The result from the multinomial logit regression showed that younger household heads, larger family sizes, smaller land sizes, and better credit access were positively associated with diversification, whereas livestock ownership, market distance, and extension services reduced the likelihood of diversification. The study suggests that Policies should enhance training, credit access, rural education, vocational training, extension services, infrastructure, and smallholder support to promote sustainable livelihood diversification.