Local perceptions of drought include shortages of food and inadequate grazing, as well as low and erratic rainfall; yet the diverse drought coping and risk reduction strategies being promoted in the two districts are mainly based on agriculture and natural resources. While livelihood diversification has increased household income and resilience, badly managed strategies can exacerbate drought risks. Socio-economic factors including HIV/AIDS, land degradation and migration have limited opportunities while food aid has increased dependency. The role of institutions is critical for supporting knowledge transfer and the development of sustainable community owned initiatives.