Since independence in 2002, Timor-Leste has made remarkable progress in peacebuilding, governance and human development. However, as both a Small Island Developing State (SIDS) and a Least Developed Country (LDC), it remains highly vulnerable to economic, environmental and climatic shocks. 20.7 percent of the population lives in poverty, and food insecurity and malnutrition remain significant challenges – with 18.7 percent of people facing hunger daily and 45.4 percent of children under five suffering from stunting (FAO et al., 2025).
Agriculture – crop and livestock production, forestry, fisheries and aquaculture – is a key economic sector, providing livelihoods for 70 percent of the population and contributing 16.7 percent to GDP in 2023. 80 percent of rural households practice crop and livestock production or artisanal fisheries; 97 percent of those are smallholder subsistence producers and two-thirds cultivate less than one hectare of land. Productivity remains low, largely due to limited access to inputs, irrigation and markets, degraded ecosystems and poorly developed value chains.
Timor-Leste’s diverse ecosystems – from mountains and forests to mangroves and coral reefs – are increasingly threatened by soil erosion, deforestation and climate change. Rising temperatures, extreme rainfall and sea level rise pose growing risks to agriculture, water security and rural livelihoods, underscoring the need for sustainable and resilient development.
