Despite the importance of non-farm income in the livelihood of the rural population
in Sudan, information available on its size and determinants is scanty. This study
examined the patterns and determinants of decisions to participate in non-farm
activities in rural Sudan. It also investigates whether the determinants of participation
in non-farm activities vary across agriculture sub-sectors and income groups as well
as among males and females. The data for this study was sourced from the Sudanese
National Baseline Household Survey (NBHS) conducted by Sudan’s Central Bureau
of Statistics in 2009. The results show that non-farm income is a crucial source of
livelihood, contributing about 43% to household income in rural Sudan. The results
of multinomial logit and probit estimation methods indicate that educational
level, mean of transportation, lack of land and lack of access to formal credit are
the most significant factors that push rural farmers to participate in non-farm
activities. Surprisingly, the effect of household income was positive and significant,
implying that individuals from rich households have higher opportunity to engage
in non-farm activities compared to their poor counterparts. Moreover, the analysis
revealed some symptoms of gender and location disparities in the effect of factors
that influence participation in non-farm activities. The study concluded with some
recommendations that aim to enhance the engagement in non-farm activities as an
important diversification strategy to complement the role of the agriculture sector
in improving rural economy in Sudan.
