Stabilizing Food Prices in a Time of Global Uncertainty: Lessons from Addis Ababa

By Ledet Muleta

January 5, 2026 (ENA)—Globally, cities face the reality of rising food prices. Such disruptions as supply chain breakdowns, climate-related shocks, inflation, and emerging trends of geopolitical tensions all contribute to push prices upward.  This challenge has become even more pronounced since the outbreak of the COVID-19 pandemic, when lockdowns, transportation breakdowns, and economic slowdowns laid bare deep vulnerabilities in global food systems.  In this regard, the problem of ensuring the affordability of basic needs, such as food, for low to middle-income families has emerged as one of the defining policy challenges of this generation.

In this global context, the Addis Ababa City Administration has taken a deliberate and people-centered approach to one of the most pressing urban challenges: the rising cost of food. At the heart of this effort, Addis Ababa City Administration has constructed and operationalized modern market centers and vibrant weekend farmers’ markets designed to reconnect farmers directly with consumers, cutting costs, improving quality, and strengthening trust along the food supply chain.

These established market centers are in the city’s five main entry and exit corridors to help stabilize the prices of basic commodities.  The five market centers are in Lafto Hulegeb Market Center, Akaki Kality, Lemi Kura, and Kolfe Sub City.  Designed like malls, it provides organized, clean, and accessible spaces where farmers can sell their produce directly to residents. 

For decades, food prices in Addis Ababa have been driven upward by long and inefficient supply chains often dominated by multiple layers of intermediaries. Each step added cost, reduced freshness, and weakened accountability. The new market centers are changing that equation.

The city is essentially removing the long chain of middlemen that has always contributed to surging prices.  Furthermore, vegetables will reach markets fresher; prices for grains will be reasonable and clear; and consumers will have confidence in knowing that they know exactly where their foods are coming from. The advantage here for farmers will be immense: better incomes, predictability in incomes due to steady demand, as well as feedback from those they are serving. The city offers significant incentives for farmers willing to take advantage of selling their wares in the city markets: farmers rent space in the markets at highly minimized prices and enjoy tax-free conditions.

Adding strength to these established market hubs are the new weekend farmer’s markets, which are currently in all the sub-cities of Addis Ababa. During the weekends, communities are brought back to life as new market areas open closer to the dwellings of the population. The new markets further reduce the gap between farm and plate, as they eliminate the extra costs associated with transport for vendors and consumers, as well as the fees associated with operating in shops for the vendors.

Taken together, these efforts go beyond mere access, as they actually work towards stabilizing food prices in the entire city. This is not to imply that food prices have failed to go up, as, like every other city around the world, Addis Ababa faces challenges.  Nevertheless, against the background of substantial rises in food prices across the globe, the fact is that the Addis Ababa City Administration is taking this problem squarely by introducing very effective measures to address the problem.

The impact will be felt most strongly by low- and middle-income households, where even a small reduction in food prices can make a significant difference. Looking at a larger arena in the entire city or the entire municipality the good effects brought about by the above strategy can contribute to increased food security in the city.

To fully realize the benefits of this strategy, the public is encouraged to make use of the market centers operating throughout the week, as well as the weekend farmers’ markets, to maximize the value of these services.