The economic landscape in Ethiopia is undergoing a dramatic shift as the country grapples with skyrocketing inflation triggered by a recent currency reform.
A stark symbol of this instability can be found at the Samra Hotel in Bole, a suburb of the capital, where menu prices are erased almost hourly to keep pace with the rapidly depreciating birr.
Since the government implemented a flexible exchange rate policy last month, the Ethiopian birr has plummeted by 60% against the US dollar, sending shockwaves through the economy.
Basic commodities have become increasingly expensive, prompting widespread anxiety among consumers.
To capitalize on the situation, some businesses have resorted to hoarding goods, creating artificial shortages and driving up prices.
Authorities are struggling to contain the crisis. In the bustling Merkato market, security personnel have been deployed to prevent price gouging, while warehouses suspected of hoarding have been raided.
Over 3,000 stores have been closed for violating price regulations.
Despite these measures, the Addis Ababa City Trade Bureau warns that more action is needed to curb profiteering.
The currency reform, a long-awaited step aimed at addressing chronic foreign exchange shortages, has been met with challenges.
While the International Monetary Fund has pledged $3.4 billion in financial support, the immediate impact on ordinary Ethiopians has been severe.
With salaries remaining stagnant, many are struggling to make ends meet.
The government’s decision to double passport fees has further exacerbated the situation, sparking outrage among citizens.
As the economic turmoil deepens, experts warn of difficult times ahead, particularly for those with fixed incomes.
