Tsegede was selected by the Ministry of Agriculture and Rural Development in 2003 as an area for voluntary resettlement for farmers from overpopulated areas. Along with Kafta Humera woreda, the other woreda selected in Tigray that year, this woreda became the home for a total of 7,334 heads of households and 618 total family members. The following year, along with Asgede Tsimbla, this woreda became the home of a total of 24,000 heads of household and a total of 96,000 family members. In 2006, Tsegede was once more selected for this resettlement program, along with Dangila, Lai Armachiho and Qwara in the Amhara Region, becoming the new homes for 8,671 families. This was reportedly accompanied with almost 68 million Birr in infrastructure development.