Situated in the Sahel region, the area around Kelakam is used for stock raising (cattle, goats, camels)[1] much of which involves seasonal transhumance, and intensive farming of cuvettes—rocky sinkholes which collect water in an otherwise dry land. Kelakam hosts a Saturday market.[2]
Kelakam is one site of ethnic Fula[3] pastoralist cooperatives formed as part of the UNDP "Nguigmi Peace Project". The project is designed to re-integrate former refugees and combatants from long simmering ethnic conflicts between Fula herders, and their Diffa Arab and Daza/Tubu neighbours over pasturage, water, and other land use. Fula pastoralists based around the town raise sheep and goats, and produce cheese and other agricultural products.[4]