Somaliland is a predominantly dryland state, both hyper-arid and semi-arid and is traditionally agro-pastoral economy. The last 30 years, has witnessed a dramatic change in the socio-economy of this agro-pastoral economy. This is triggered by the breakdown of wet and dry seasons, grazing patterns, loss of the natural bio-diversity, recurring droughts, and change of land use. This in turn has had negative implications on crop and livestock production and subsequently negatively accelerated livelihood and poverty trends.Overtime, most people in rural areas turn to the excessive exploitation of the scarce natural resources, particularly charcoal production in order to generate supplementary income. Maintenance of sustainable livelihood systems in both agriculture and pastoral economy remains a key challenge to development agencies and stakeholders.
Despite the changes that have taken place over the years, still, agriculture is the second main productive sector accounting for 25% of employment and giving livelihood to about 60% of the rural population.