Costly Christmas Reveals Holiday Fault Line

Jan 3 , 2026. By YITBAREK GETACHEW ( FORTUNE STAFF WRITER )

Across Addis Abeba and far beyond, the holiday season is a celebration and a challenge. For some, it is a moment to indulge, decorating homes with imported trees, nativity scenes, and elaborate displays. For others, the true meaning of the season is found in family, in memory, and in the small moments of togetherness that money cannot buy. What unites these experi-ences is the search for meaning in the face of rising costs, reports YITBAREK GETACHEW, FORTUNE STAFF WRITER.

As the festive season descends upon Addis Abeba, the city flickers to life. Markets overflow, streets shimmer with light, and homes brace for celebration. But behind the dazzling veneer lies a quieter reckoning. The cost of joy is mounting, and not all can afford its price.

Artificial Christmas trees, once modest centrepieces, now stand as symbols of economic stratification. A full-sized, 2.4m tree can command up to 150,000 Br; even the smallest, half-metre version fetches 4,000 Br. Strings of lights climb to 15,000 Br, while garlands, nativity scenes, push festive budgets into six-digit territory. In a city where median incomes remain modest, holiday décor has become a luxury few can justify, and even fewer can sustain.

This sharp rise in prices has changed the way families approach the season. Some, like Alemnesh Teshome, are determined not to let the cost dampen their spirit. At 45, Alemnesh is a resident of Goro, a mother of three, and a business owner. For her, holiday decorations are essential, a tradition she upholds year after year, no matter the price.

"Whatever it takes, I'll spend it for my children," she said, her resolve firm despite the cost.

She admitted that every year brings new challenges. Last year, the Christmas tree her son picked cost 95,000 Br. This year, a similar tree would set her back more than 120,000 Br. Decorative lights have gone up by around 200 Br in a year. Still, she refused to cut corners.

The process of shopping for decorations is more than a financial outlay for Alemnesh. It is a ritual that marks the beginning of the season. Outings to the market with her family, especially the mothers in her extended brood, are events she treasures. But even in her household, there are differing views. Some argue for simpler celebrations, focusing on the garland instead of imported artificial trees. Others insist on maintaining the full spectrum of modern décor.

Alemnesh tries to convince her children that the heart of the celebration does not lie in material things, but they are rarely willing to accept compromise.

"There is a tradition we must respect," she told Fortune. "My children want these decorations."

In the past, her family would use the same tree for several years, but today’s products are often flimsier and last only a season. Despite her devotion to the holiday, Alemnesh cannot ignore the relentless rise in prices. Her attention has recently shifted to the "Girgim," literally translated as "nativity scene," a more affordable and meaningful alternative.

"This is what has caught my attention lately," she reflects. "It gives meaning."

Businesses have watched this transformation closely. At Mercato, From Them, who sells Christmas decorations, notes that holiday décor has become a cultural habit, with families now budgeting specifically for ornaments. Yet, the number of buyers has declined.

"This year, the number of decoration buyers has slightly declined," said Abraham Gidey, another seller.

Many people inquire about prices but leave without buying. Abraham attributed this to the declining value of the Birr and to the fact that most holiday décor items are luxury imports. Even as sellers acknowledge the drop in demand, they recognise that those who can afford decorations will still buy.

"These aren't required goods," he stated. "They're bought only by those who can afford them."

According to Abraham, while some customers now favour trends other than Christmas trees, there is a steady market among those with disposable income. But for many, these displays are out of reach. Mulay Wachito, a private company employee and father of two, is one such example. As he strolled through Mercato, he paused to ask about nativity scenes and artificial trees, but the prices quickly dissuaded him.

"Why would I even look at this when I know I won’t buy it?" he wondered.

For Mulay, the holiday season is about family. Each year, he travels to Debre Brehan to visit his brother and buy a sheep for the festivities. His priority is gathering loved ones, not decorating his home. Gifts for his children are practical, such as hymen instruments, books, or new clothes.

"My décor is my family," Mulay said. "Family is more than everything."

He does not reject that decorations add something special to the season, but with prices so high, he could not justify the expense. The cost of a tree could wipe out almost half of his annual earnings. He chuckled at the thought that his family would rather see him leave with the tree than bring one home at such a price. Yet the conversation quickly turned serious.

"First, there is no money," he said. "Why make me think about this? If I buy it, how will my life look?"

For Mulay, the holiday is not a single day, but a week spent catching up with loved ones. His memories are filled with more personal gestures, including gifts from his brothers, the joy of family reunions, and the story of how he met his wife, a moment made possible by his brother’s matchmaking. This year, his family hopes to gather again, though work and distance make such occasions irregular.

Financial constraints have made each celebration harder. The depreciation of the Birr means everything costs more. This year, Mulay’s budget for a sheep, raw meat, and homemade drinks totalled 27,000 Br, compared to 20,000 Br last year.

"Everything is getting more expensive," he told Fortune. "Why should I focus on decorations? This is not a housewarming."

Sellers, such as Samuel Woldehawariyat, a decoration vendor at Mercato, see the impact, too. This year’s holiday season feels different. His shop, usually busy with customers, was quieter last week.

"Everything in my shop has its price doubled," he conceded.

Ribbons that cost 40 Br now sell for 100 Br. Lights have doubled to 400 Br, and Christmas hats were priced at 300 Br, double last year’s. Nativity scenes, too, are more expensive. Samuel blamed rising production costs and shortages of raw materials. With decorations becoming harder to source, he focused on making nativity scenes to meet customer demand.

"There is a shift from Christmas trees to nativity scenes," Samuel observed. "We can’t afford trees anymore because they require much more cash."

He also noted that changing religious perceptions influences what people buy.

"This is a real shift we've observed over more than a decade," said Samuel, who keeps things simple for his own family, decorating only with artificial grass.

Many people visit the shops to ask about prices, and several decoration shops in Mercato have shut their doors or moved. Despite rising prices, the desire to decorate has not disappeared.

"Those who can afford luxury items will still buy them," he said.

Abdulkerim Kedir displayed his Christmas goods in front of his kitchenware shop at Shola Market, Lemlem Mercato Mall, near the British Embassy. His customers fall into two groups. Some buy as soon as they hear the price, while others are shocked, comparing it to last year's or New Year's prices.

"Customers want lower prices, but this is a seasonal market," Abdulkerim said. "Those who can afford it will buy; those who can’t will walk away."

For others, the focus shifts away from decorations altogether. Mahlet Tadesse, 25, works at a non-profit organisation and scoured Mercato for a Christmas present for her fiancé. For her, the holiday is about meaning.

Mahlet planned to give him a photograph of his mother and a watch, gifts that speak to memory and hope. She recalled a time when her fiancé was out of work and gave him a missive that read, "This day will definitely pass." The missive, now framed, sits by his bed. Last year, he surprised her with a clay pot inside an iron pot, with a note that read, "If you don’t understand, ask your mother." The cryptic gift led to jokes and speculation about a proposal. "To this day," she said, "my family has never forgotten it."

Businesses adapt as best they can. Mulualem Nigussie, a veteran of the decoration business, is preparing to open his own shop. He recognised the changing landscape.

"Holiday decoration today feels like a luxury lifestyle," he said.

Mulualem has learned to distinguish between customers who can easily afford decorations, those eager to match their neighbours, those who feel compelled but cannot afford it, and those who do not care.

"I know people who take loans just to decorate," he told Fortune. "Sometimes it becomes a form of competition."

The migration from Christmas trees to simpler nativity scenes is unmistakable.

"This year, even in the market, there are far fewer Christmas trees than before," he said. "Prices are high. People still want to decorate, but many now choose nativity scenes instead."

The shifting trend in holiday decorations is part of a broader pattern, as noted by Nassir Yenus (PhD), a senior researcher and macroeconomic team leader at the Ethiopian Economic Association (EEA). Products tied to specific seasons inevitably see price hikes, especially when they are luxury goods.

"Not everyone uses these products," said Nassir. "They're bought by people who can afford them."

Most decorations are imported, making them vulnerable to fluctuations in foreign exchange. The depreciation of the Birr has made them even more expensive.

Ethiopia’s measured importation of Christmas paraphernalia might appear inconsequential. The Christmas décors are visually Western but economically trivial.

However, their very presence unveiled a modest yet persistent appetite for discretionary goods, even amid a foreign exchange crunch and import restrictions. Importers brought in over 62tns of Christmas decorations in 2023, and 62,465Kg of glitter and wire, with a total value of 155,800 dollars, according to customs records. That figure represented six percent of the broader 2.58 million dollars in imports, which included all festive, carnival and party items.

Like most low-value consumer goods, Christmas imports are predominantly sourced from China, which supplies 80pc to 90pc of festive decorations.

The decorations, mostly baubles, artificial trees, lights and ornaments, serve an urban and corporate clientele. The urban population is expanding, and with it, an emergent service economy that caters to a rising class of consumers. Shopping malls, international franchises and branded hotels increasingly observe Western holidays, not out of tradition, but as retail and hospitality opportunities. They represent the visual language of a global holiday slowly becoming ambient in metropolitan life.

"It's a seasonal market, and it's known that prices can increase," said Nassir. "This can give sellers market discretion."

According to Nassir, businesses take advantage of the season, knowing that demand is high and buyers are motivated by excitement and lifestyle. He observed that reduced price sensitivity encouraged buyers toward quick purchases. The same pattern is evident elsewhere, especially in sectors catering to non-essential or luxury needs. Jewellery, for example, also sees prices soar during peak seasons.

"These are luxury-type products," he said. "Their prices respond quickly to seasonal demand and broader economic shifts."

PUBLISHED ON Jan 03,2026 [ VOL 26 , NO 1340]