A Multinomial Logit Analysis of Livelihood Assets and Household Strategies in Kanem, Chad

Abstract

In sub-Saharan Africa, including Kanem, Chad, households diversify livelihoods using agricultural and non-farm activities to manage risks and enhance sustainability, guided by the Sustainable Livelihood Framework. This article aims to analyse the livelihood assets that influence the strategies of agricultural households in the Kanem region of Chad. The study employed a multinomial logit model to determine the relationship between livelihood assets and the strategies adopted. The mean value of the livelihood asset index in the province stands at 0.297, reflecting an unfavourable situation in terms of the resources available to farming households. This result underscores their precarious living conditions and limited prospects for economic development. The findings of the study reveal that human capital, financial capital, and social capital have a positive and significant effect on livelihood strategy choices, particularly for Type II rural households (households primarily dependent on agriculture). Households with greater access to these three forms of capital are more likely to adopt strategies associated with Type II and Type III livelihoods. Physical capital also demonstrates a marginally significant positive influence on strategy selection among Type III households. In other words, the more physical capital an agricultural household possesses, the more likely it is to engage in activities corresponding to this model. The findings of this study argue for a shift by public authorities towards integrated development policies, replacing traditional sectoral approaches with synergistic interventions that combine the strengthening of human capital (training), facilitated access to financial capital (credit), and the consolidation of social capital (structuring farmer organizations). This multisectoral approach constitutes an indispensable lever for optimizing the valorization of livelihood assets and fostering the adoption of strategies with enhanced resilience and economic profitability by farm households in Kanem.