INDEX INSURANCE FOR LIVESTOCK IN THE IGAD REGION Drought Shock to The Livestock Sector

Poverty and vulnerability are high Households (especially pastoralist) have become poorer, with nearly 7 of 10 Somalis in poverty, and highly vulnerable to shocks, from natural disasters and epidemics to injury, death and unemployment. Access to public services is extremely limited for rural residents, and especially nomads. Only 5 of 10 households have access to improved sanitation and electricity. Markets and clinics are far for 34-40% of households and nomads. Due to a swell in youth population, this group is arguably the most vulnerable, with job- creation for youth critical for sustainable poverty reduction, vulnerability mitigation, and conflict avoidance.

Livestock ownership and livestock owned Figure 3.9: Livestock Ownership Figure 3.10: Number of Livestock Owned According to the most recent household survey of poverty and vulnerability in Somalia by the World Bank, every nomadic household owns some type livestock, compared to 53 percent of the rural households, 35 percent of IDPs in settlements, 23 percent in other urban areas and 19 percent in Mogadishu. Chickens are the only type of livestock owned by a similar share of rural agro-pastoral than nomadic households; 18 vs. 11 percent respectively (Figure 3.9). Among owners, nomadic households also own a larger number of livestock than non-nomadic households; nearly twice for cattle, sheep, goat and camels (Figure 3.10).

Climate change a growing threat Most of the country’s landmass is arid or desert, but also with a large semi-arid zone, and in southern Somalia a sizable humid zone. Pastoralism is most productive and best adapted form of land use, with nomadic pastoralism mostly in the arid zone, agro-pastoralism in the semi-arid zone, and irrigated crop cultivation in the humid zone. Intensifying climate change, with more extreme and frequent floods and droughts, and severe environmental degradation of rangelands and forested areas have affected negatively the performance of all agricultural sectors, including livestock. Most recent drought in 2016-17 led to a serious humanitarian crisis, whose human, social, and economic effects still linger today, including for pastoralists and agro-pastoralists.

Growing vulnerability to adverse shocks

Livestock processing: key constraints In addition to most of the same constraints listed above affecting quality and health of live animals and which also affect negatively livestock output of processed products: Weak and inconsistent adherence to food safety and quality standards for livestock products (milk, meat, H&S); Inadequate private investment in processing for value addition, partly due to: poor access to credit and no access to insurance, and Low of incentives and encouragement by Public & Private sectors

Responding to drought shocks in Somalia Drought is a recurrent phenomenon in Somalia, changing climatic conditions forcing communities to experience shocks on yearly basis. There is an Emergency plans in place for livestock asset in Somalia, targeting approximately 1.6 million Somalis, including provision of supplementary feeding, basic veterinary Services and water trucking for animals. These is always in every year’s plan to keep livestock alive to produce milk, meat and income for pastoralists and agro pastoral relying on livestock to survive. The drought plan also focuses a complementary cash programming designed to enable households to cover food consumption gaps while avoiding the distress sale of livestock to afford food and non-food items. omalia

Responding to drought shocks in Somalia ( Cont...) At a much larger scale, countrywide livestock supportive treatment and vaccination campaigns is also planned to protect a critical mass of livestock against fatal conditions and disease that can spread rapidly during drought among weak animals, migrating and crowding around scarce pasture and water sources. And their is also on development on water resources management strategy to overcome this crisis and make water and fodder production for animals vailable in Somalia. Responding

Sustaining live animal production Strengthening National Policies, plans and regulations promoting on pastoral protection & enhance their livelihoods Gather reliable information on sector, including via a comprehensive animal population survey and a feed inventory and balance Invest in in watershed management and infrastructures to mitigate impact of extreme cycles of rainfall, floods and drought to strengthen resilience Protect the natural rangelands resource base to sustain productivity of livestock Improve land tenure management to deal with grazing rights, the fast-expanding private enclosures on previously communal rangelands, and commercial crop- and grasses- producing areas; and Leverage an enhanced traditional, community-based breeding system to improve productivity while maintaining adaptive traits, instead of a centralized and exotic breeds- based breeding program. Improving Veterinary Services & Animal Health

Improving access to finance To address very limited access to finance for the sector, there is need to: Enhance financial literacy, Expand formal financial credit services and innovative digital financial services, and Adopt risk transfer instruments like livestock insurance, to help manage drought shocks.

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