Furniture makers in Addis Abeba grapple with rising costs

Rising furniture prices in Addis Abeba highlight challenges for local manufacturers amid economic pressures. Workshops face forex shortages, policy delays, and supply chain issues affecting the urban economy. Stories from firms like Posh Woodwork and Zerufam Industry illustrate the growing vulnerabilities.

The furniture manufacturing sector in Addis Abeba, long considered a reliable part of the city's economy, now contends with escalating costs that threaten its stability. As prices climb, workshops across the capital are squeezed by a combination of foreign exchange shortages, slow policy responses, and disruptions in supply chains. These issues ripple through the broader urban economy, impacting various enterprises.

Reports detail the experiences of specific manufacturers, such as Posh Woodwork and Zerufam Industry, which exemplify the fragility of local businesses in this environment. The sector, once steady though unremarkable, now mirrors wider economic headwinds that challenge growth and sustainability in Addis Abeba.

According to Surafel Mulugeta, a Fortune staff writer, these dynamics underscore the vulnerabilities faced by small-scale producers. The article, dated January 17, 2026, emphasizes how such pressures are not isolated but part of a larger pattern affecting Ethiopian urban industries.

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Photo illustration of a furniture store with rising price tags and tariff-impacted wood products, highlighting increased costs since 2020.
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Furniture prices climb since 2020 as new tariffs and costs add pressure

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Prices for key furniture categories have risen since the pandemic, even as they trail overall inflation. Fresh U.S. tariffs on wood products and broad import duties could push costs higher, industry figures and federal data indicate.

Many young entrepreneurs in Ethiopia enter the jewellery-making industry with modest capital and minimal formal training, relying on digital platforms for sales. Online commerce, especially through TikTok, has rapidly overtaken traditional in-person jewellery sales. Rising input costs and supply chain shortages pose major challenges for local artisans, while policy support remains limited.

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Rising prices of cooking oil are forcing families and small businesses in Addis Ababa to make tough choices. Households are cutting back on consumption, altering dietary habits, or even pausing operations that can no longer afford costs. Retailers and wholesalers face an unpredictable market with no immediate signs of supply stabilization.

More than 14 foreign chambers of commerce, representing European, American, Chinese, and Indian interests, are uniting to tackle persistent business obstacles in Ethiopia. EuroCham has opened a new headquarters offering free workspaces to help new investors navigate local rules. Foreign direct investment rebounded to $4 billion in 2024/25, though bureaucratic issues continue to plague many investors.

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Addis Abeba's Tax Appeal Commission faces growing pressure from a backlog of unresolved tax appeal decisions, leaving businesses in limbo. The report, penned by Surafel Mulugeta, sheds light on the challenges arising from these delays. This situation underscores ongoing administrative hurdles in Ethiopia's tax system.

Ethiopia's forex market appears calm but is under administrative watch, according to reports. This insight comes from Addis Fortune, a leading Ethiopian business news source.

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South Africa's retail sector is entering the 2025 festive season with cautious resilience amid structural shifts. Sales in textiles, furniture, and online channels are rising, but households remain budget-conscious due to inflation and value concerns. This transition highlights a blend of seasonal spikes and long-term changes in consumer behavior.

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