Long-term research in Tanzania sheds light on the reasons rural households diversify their income

Researchers and policymakers have long asked whether rural households in Africa diversify their income to spread risk or by seizing opportunities to increase their earning potential. Long-term research in Tanzania shows that diversification is more often a choice rather than a necessity, with the potential for both wealthier and poorer households to benefit alike. Poverty traps remain, however, and policy efforts should focus on infrastructure and financial access to encourage diversification towards income generating activities.