Worldwide, approximately 1.4 billion individuals have been classified as 'extremely' poor; surviving on less than $1.25 a day. Nearly three quarters of the extremely poor live in rural areas, with most rural households depending on agriculture as their source of income. In addition, the livestock sector has become one of the fastest developing agricultural sub-sectors, exerting pressure on natural resources. Guiding livestock sector development on a pathway that balances the interests of low income households poses a tremendous challenge to policymakers. This study follows a previous FAO study and extends it to the Horn of Africa. In contrast to mapping techniques that reflect economic data, the study uses environmental and sociological variables, thereby placing the outcome firmly in the context of those factors that underpin poverty. Specifically, it investigates the use of the Demographic and Health Survey (DHS) and Wealth Index (WI) as a proxy for a regional welfare measure. This working paper describes the results of the study undertaken to support the EC-funded IGAD Livestock Policy Initiative (LPI). All data and results are archived in digital format on the IGAD Livestock Information Portal. You may click here to read the full report.