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This paper examines impacts of Prosopis juliflora (hereinafter may be referred as ‘Prosopis’) invasion on livelihoods of agro (pastoral) households using detailed household data in rural Dire Dawa Administration of Ethiopia. Cross-sectional data were collected from a total of 450 sample households whereby 250 were from Prosopis-invaded households and the remaining 200 from non-Prosopis-invaded households. The major research question of the study was, ‘what would be the livelihoods of Prosopis-invaded households had they not been invaded by Prosopis?’ To answer this question, descriptive and econometric tools were employed. The study results revealed that family size, dependency ratio and access to irrigation had negative and significant relationships with Prosopis invasion. On the other hand, age of the household head, Tropical Livestock Unit (TLU) and engagement in food for work programmes were positively related to Prosopis invasion. The results of this study show that the positive effects of Prosopis invasion were pronounced in terms of education expenditure, average annual income from crop production, off-farm income, food and non-food expenditure and physical food consumption, whereas there has been negative effects of Prosopis invasion due to reduced income generation from milk products. In this study, possible recommendations were drawn for stakeholders in order to reverse Prosopis adverse effects and optimize the positive impacts of this species in the study area.

Impacts of Prosopis juliflora invasion on livelihoods of pastoral and agro-pastoral households of Dire Dawa Administration, Ethiopia