The average cost of living in Addis Ababa is $1,103. Living in Addis Ababa costs 4.8 times more than the average salary.
Addis Ababa, the capital of Ethiopia, is the largest city in the country with an estimated population of 5.23 million. While it ranks 6957th (top 75%) globally for liveability, it’s considered the best city to live in Ethiopia.
However, with a median after-tax salary of $231, covering only 0.2 months of living expenses, it’s clear that the cost of living can be a significant challenge.
1. Civil war
The civil war in Ethiopia has led to significant challenges, including increased costs for housing, food, healthcare, and education, and shortages of basic goods.
The Tigray war lasted from 3 November 2020 to 3 November 2022 had significant impact on the country’s economy,
Many people have been forced to migrate, particularly rural residents, who face limited transportation options due to fuel shortages.
2. Ethiopia is a landlocked country
To access the Ethiopian markets, all imported commodities must first travel through neighbouring countries like Djibouti.
This boosts the price of goods for consumers by increasing the cost of transportation, particularly for bulk items.
3. Imports bans
Import restrictions, tariffs, and foreign exchange controls can increase goods’ costs.
The following goods have import restrictions: furniture, perfumes, makeup, artificial flowers, headgear, jewellery, carpets, umbrellas, watches, soaps, fireworks, human and artificial hair, and bags and wallets, which are meant to protect local industries but end up doing the opposite.
Other expensive cities to live in Africa are Harare, Zimbabwe, Dakar, Senegal, and Cape Town, South Africa.
