Determinants of rural livelihood diversification strategies among Chewaka resettlers’ communities of southwestern Ethiopia

Abstract Background Livelihood diversification plays a decisive role for the reduction of poverty, food insecurity and to improve the welfare of rural communities. However, inadequate research attention has been given to explore the determinants of livelihood diversification strategies in resettlement areas of Ethiopia. This study attempts to investigate determinants of livelihood diversification strategies among the resettler households in Chewaka district of Ethiopia. Methods The study utilized both primary and secondary data which are qualitative and quantitative in their nature. Through multistage sampling procedure, a total of 384 households were selected from seven sample kebeles of Chewaka district. Data were collected using interview schedule, focus group discussions and field observations. The collected data were analyzed quantitatively and qualitatively. Descriptive and inferential statistics along with multinomial logit model have been employed to analyze the data. Results The results showed that agriculture (43.2%), agriculture plus non-farm (25.5%), agriculture plus off-farm (19.3%) and a combination of agriculture plus non-farm plus off-farm (12%) activities are the most pertinent livelihood strategies in the study area. It was found that agriculture has a leading contribution to the total households’ income (72.5%) followed by non-farm (20%) and off-farm activities (7.5%). Multinomial logit model result revealed that land holding size, educational status, livestock holding, sex, age, market distance, credit access, annual income, access to training and household sizes were the major determinants of livelihood diversification strategies. Moreover, poor infrastructural development, lack of working capital, absence of technical support, inadequate skill training and lack of awareness are constraints to livelihood diversification in the area. Conclusions The study concludes that agricultural sector alone cannot be relied upon as the core activity for rural households and as a means of reducing poverty, achieving food security and improving livelihoods in the study area. Thus, a comprehensive development plan that enhances successful livelihood diversification is found to be imperative and most urgent. Policies and actions directed towards improving livelihood of the resettlers’ communities should focus on expanding rural infrastructures, enhancing awareness creation activities and cooperation of stakeholders to bring sustainable livelihood outcome in the area.