'Life's harder for the vulnerable'

What's your money worth? A series from the front line of the cost of living crisis, where people who have been hit hard share their monthly expenses.

Name: Seid Anbesu

Age: 33

Occupation: Social worker in a government bureau

Lives with: Wife Jemila Muhammad (29), son Reyan Seid (2), sister Halima Bati (16), and domestic helper Aziza Shemsedin (16)

Lives in: A 38-square-metre studio apartment in Bole Arabsa on the outskirts of Addis Ababa, Ethiopia’s capital city. The studio consists of a single room that serves as both the living room and bedroom, separated by a curtain, with a bathroom and small kitchen attached.

Monthly household income: Seid earns a gross salary of 6,193 birr ($115), but after taxes and pension deductions, he takes home 4,770 birr ($88). His wife, also a social worker, earns 6,093 birr ($113), bringing the total household income to 10,809 birr ($200).

Total expenses for the month: 15,500 birr ($288)

Seid spends his day providing psychosocial support for vulnerable people. As a civil servant, it is his job to allocate government resources to the rehabilitation of marginalised communities, including sexual harassment survivors, migrant returnees and people with disabilities.

Despite being a university graduate with eight years of experience and holding a mid-level job at a government office, he still struggles to make ends meet.

In fact, Seid is in Ethiopia’s falling middle class, who are finding themselves at odds with the increased cost of living in the country.

Seid and his wife Jemila are both visually impaired. Seid has slight vision, having lost most of it when he contracted measles as a child, while Jemila is fully blind.

"Life is harder for vulnerable people like us," Seid says. "As life gets tougher, many in the capital are finding ways to do other jobs on the side. But being blind in a country where accessibility is an issue, the number of jobs we can do are very limited. I just sit and wait for my monthly salary, unable to increase my income from other sources.”

Ethiopia has the third-highest inflation rate in Africa, after Sudan and Zimbabwe. In December 2022, the annual inflation rate saw a modest 2 percent decrease to 33.8 percent from the month prior.

The price of everyday items, like iodised salt, tomato sauce, toothpaste, soap, pasta and tissues, seems to increase at least once a month at shops in Addis Ababa, the city’s residents including Seid say. It is a grim reality Ethiopians have come to terms with.

Consumers' wages, however, have remained largely stagnant. This is particularly problematic for public employees like Seid, who are paid even less than people working in the private sector.

Multiple factors have converged to weaken the East African economy, mainly the Tigray war in North Ethiopia; the most severe example of drought to date in the country’s southern region; and the rapid depreciation of the birr against major baskets of foreign currencies. In addition, the war in Ukraine has disrupted supply chains and food supplies across East Africa, leading to rapidly rising prices for essential goods.

Seid and Jemila first met at a boarding school for people with visual impairments when they were children. They both later studied sociology at university and currently hold similar jobs.

"Our monthly expenses are higher than our household's monthly income. There is no way for us to decrease expenses any further," Seid says.

Seid often travels to other cities for workshops and training - sometimes as a facilitator and other times as a participant. On some trips, he can earn twice his monthly salary in daily allowances from his fieldwork. It’s this money that keeps the family afloat. The extra earnings are saved and used to supplement their expenses during months when there is no additional income.

Seid is also enrolled in a master's programme. An NGO is sponsoring him and paying his tuition. He believes that the only way to improve his and his family's living conditions is by securing a job with an NGO, where the pay is higher than in the public sector.

"It's the small things that add up, for example, accessibility comes at a cost,” Seid says, explaining how, at the office, computers are shared between coworkers which makes it difficult for him to install software like JAWS, a computer screen reader programme for visually impaired users. Instead, he pays typists to help him when he has assignments to submit.

Rising costs and increased inflation affect everyone, Seid says, but they take a bigger toll on people who are vulnerable because they are affected in more ways.

“If I go to a new place that I am not familiar with, it means I need to take someone to assist me, which increases the cost of transportation,” he explains.

Socially, rising costs also bring stress. “The impact of economic hardship does not stop at finance. It is something that affects social fabrics, and human interaction too,” Seid says.

He worries about what will happen when he inevitably gets invited to gatherings such as birthdays, weddings and social events where it is customary to bring gifts, as this would mean additional expenses.

"We have a very tight budget and we don't have any room for unexpected expenses,” he says. “We try to plan everything despite the challenges.”

Over the course of the Ethiopian month of Tahsas, which fell between December 10, 2022, and January 8, 2023, Seid tracked the family's monthly expenses in collaboration with reporter Kaleab Girma.

Here are the expenses that tested the family's finances the most.

Rent

House prices and rental costs have been increasing in Addis Ababa at a rate far greater than the inflation rate. This has made life unbearable for the general public, especially people who are poor.

Rent prices are so concerning that the mayor of Addis Ababa has been banning landlords of residential homes from increasing rent or evicting tenants for certain periods. The latest ban was passed for six months in September 2022.

To decrease costs, Seid rents a small studio apartment on the outskirts of the capital. He says you can find farmland nearby, indicating how far the family lives from the centre of the city.

But even at such a distance, costs are high and almost all of his monthly salary goes towards paying rent. He rented the apartment last year and prices have already increased, Seid says. But because his landlord is sympathetic to the couple’s conditions, he did not increase the rent for them by the same amount as their neighbours, who are paying a higher price.

Last year: 4,000 birr ($74)*
This year: 4,500 birr ($83.50)

Transport

Living on the outskirts of Addis Ababa, which is the largest city in Ethiopia, means increased costs of commuting. Both Seid and Jemila have to take three different rides to get to work.

Seid leaves for work at about 7am. There is a shortcut behind his building that would decrease the walking distance to the area where they catch their first ride, but as the shortcut is not accessible for a blind person, he and Jemila take a longer route. He says they have both adapted to their daily routines and do not need assistance getting to and from work.

Seid spends about 40 birr to get to work. First, he takes a 5-birr ride on a three-wheel taxi known locally as a bajaj, followed by a long 30-birr ride on a minibus taxi, and then another ride on a minibus. The journey takes him about one and a half hours.

When he returns home, he uses a public service bus that transports civil servants for free.

This month, Ethiopia saw its third fuel price rise in nine months go into effect. Though public transport service providers buy fuel at a subsidised price, saving people like Seid from the full burn, in the past year there were tariff increments that they could not escape and transport is a significant expense for Seid and his family.

Last year: 1,000 birr ($18.50)*
This year: 1,700 birr ($31.50)

Cooking oil

Unable to meet its domestic demand, Ethiopia is a huge importer of edible oil. The nation bought nearly $70m worth of edible oil in the first six months of the current fiscal year.

Due to the high demand, shortages and volatility in the edible oil market are common in Addis Ababa. This was exacerbated following the outbreak of the Russian-Ukraine war, disrupting Ethiopia’s main edible oil manufacturers who import crude from Ukraine.

In March 2022, the price of a five-litre sunflower oil bottle doubled overnight and the price more or less remains the same now.

In Seid’s family, everybody eats at home except for Seid, who has lunch at a restaurant when he is at work. The family goes through a five-litre bottle of edible oil almost every month.

Last year: 600 birr ($11)* for 5 litres
This year: 1,000 birr ($18.50)

Groceries

One of the biggest expenses for the family this month was groceries. Items such as onions, tomatoes, potatoes and pasta were purchased weekly, either by Seid’s sister or the domestic helper.

Given the country’s double-digit inflation rate, which has persistently hovered above 30 percent for a year, all sectors of the economy have seen price increases.

Ethiopia has a trade deficit of more than $10bn. Furthermore, since 2017, the currency has been undergoing a significant devaluation. In the past six years, the value of the birr has dwindled by 140 percent against the dollar. This results in increased costs for imported items, while local producers also raise their prices to maintain their profit margins.

The family avoids meat, which is expensive, and instead opts for vegetables.

"We never used to worry about food before, and we had a balanced diet. But now there is a sense of pressure and economic hardship that is closing in on us. Our diets have changed. We used to have a variety of food options at one meal, but now it's limited to one or two. We didn't eat the same food twice or three times in a row, but now it's becoming more common," Jemila says.

Last year: 2,000 birr ($37)* for a month’s worth of groceries
This year: 3,000 birr ($55.60)

Teff

Teff is a small, round grain native to Ethiopia and Eritrea. It is a staple food in these countries and is used to make injera, a traditional flatbread. Seid's family buys 50kg of teff at once, which lasts them for about a month and a half.

Teff is an important part of the country's economy, both in terms of production and consumption. However, in recent years, food prices have risen, making teff too expensive for many working-class people.

"Teff is a necessity in Ethiopia and cannot be disregarded,” Seid says, explaining why it is not something the family will easily give up. “An increase in teff prices means sacrifices in other areas of life, such as clothing. I can't remember the last time I bought new clothes," he adds.

Last year: 2,250 birr ($41.70)* (45 birr per kilo)
This year: 3,000 birr ($55.60) (60 birr per kilo)

Domestic helper

Having a domestic worker is common in urban areas of Ethiopia. Helpers are often hired to take care of households and may live with their employers.

Due to Seid and Jemila’s condition, they require daily assistance and help with the housework. As his sister Halima attends school (which is tuition-free as it is a public school), the helper Aziza does the shopping, takes care of their child, and prepares the food.

However, domestic workers are becoming too expensive for most middle-class families in Ethiopia to afford. Since Aziza is also a family member, Seid pays about half of the typical market salary for her wages. He explains that she is from his home region in Arsi zone and as this is her first time working as a house helper, she is also using the opportunity to gain work experience.

Last year: 700 birr ($13)* per month
Current price: 1,000 birr ($18.50)

Six quick questions for Seid:

1. What's one thing you had to forgo this month? We can no longer afford milk for our son. We used to pay 550 birr ($10) for a monthly subscription of milk, but the price jumped to 950 birr ($17.60) two months ago. We decided to cancel the subscription and buy milk from the store less frequently, but even that was too expensive for us.

2. What’s the hardest financial decision you had to make this month? A staff member where I worked was sick. The employees decided that we should all contribute and I was told to give 1,000 birr ($18.50). My finances are already hard pressed, but not contributing also affects my social relationships, so I was forced to pay.

3. Which is the most worthwhile expense from this month? Jemila is three months pregnant with our second child. So, a medical check-up was due, and we did not hesitate to pay for all the necessary tests.

4. When finances get tough, what advice do you have? Life in such conditions is often unpredictable. But despite the challenges, it's important to plan all of your expenses ahead and try to stick to it.

5. What’s your biggest money worry? Being a civil servant means a portion of your salary could get deducted for government projects. Sometimes the cuts reach up to 10 percent. We constantly fear being forced to give our salary for the latest government initiative.

6. What is the saving hack you are proudest of? A joint account. With a joint account, neither I nor my wife can withdraw money whenever we like. That's one way to avoid temptations.

*Last year refers to the month of Tahsas in the Ethiopian calendar, which fell between December 10, 2021, and January 8, 2022. Last year’s prices were sourced from Seid.

Read more stories from the series: What's your money worth?