Cost Of Living in Eritrea 2025

Average monthly spending for singles, couples, students, and families in Eritrea

Whether you're living in Eritrea or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.

Singles

The average monthly expense for a single person living in Eritrea is 4,800 ERN. Expenses can range from 670 ERN at the minimum level to 32,000 ERN at the highest end.

Couples

The average monthly spending of couples in Eritrea is 7,900 ERN. Expenditure can range from 2,600 ERN to 42,000 ERN per month.

Families

The average cost of living for families in Eritrea is 11,000 ERN per month. Families spend anywhere from 3,700 ERN to 69,000 ERN.

Students

The average monthly expenditure for students in Eritrea is 3,500 ERN. Students spend from 530 ERN to 23,000 ERN per month.

Expenditure to Income Ratio in Eritrea

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.

Expense to income distribution levels

Interpretation and Analysis

The average spending-to-salary ratio in Eritrea is 88% This means that on average, people spend around 88% of their income for living. According to the distribution table, 14% of the population spend approximately 60% to 70% of their income every month.

Individual
79%
Spending-Income-Ratio

---

74%

86%

Couple
84%
Spending-Income-Ratio

---

78%

91%

Family
92%
Spending-Income-Ratio

---

86%

100%

How do people spend their money in Eritrea?

We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.

People living in Eritrea typically spend from 11% to 30% of their total monthly expenditure on housing with 22% being the average. The average spend on housing is 2,100 ERN with expenditure ranging from 160 ERN to 21,000 ERN. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.

Utility expenditure like electricity, water, and gas in Eritrea ranges from 5% to 12% of total expenses with 8% being the average. The average monthly cost of utilities is 340 ERN with 26 ERN and 3,400 ERN being the upper and lower limits.

Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 53 ERN to 6,900 ERN on commuting with 690 ERN being the norm for most people in one month. This means that money spent on transport constitutes about 6% of total spending on average but can go as low as 3% or as high as 10%.

The average outlay on groceries in a month in Eritrea is 1,700 ERN. The cost of groceries can range between 130 ERN to 17,000 ERN. People spend on average about 29% on food and groceries with upper and lower bounds of 21% and 35% respectively.

People in Eritrea allocate 6% to 14% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 11%. The range of medical expenses range from 37 ERN to 4,800 ERN with 480 ERN being the norm.

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 21 ERN to 2,700 ERN with 270 ERN being the average. Speaking of percentages, that equates to 2% to 8% of total expenses with an average of 4% for most residents.

Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 5% of the monthly expenditure with 3% and 11% being the lower and upper bounds respectively. The average reported education cost is 410 ERN per month with 32 ERN being the minimum spent amount and 4,100 ERN being the maximum.

How much money can you save in Eritrea every month?

We asked thousands of people what percentage of their income can they save in a month. Below are the answers.

What percentage of people in Eritrea manage to save money from their income every month?

Almost 49% of the surveyed people in Eritrea said that they can save some money at the end of each month while 51% said that aren't saving anything.

Percentage of people saving money by population group in Eritrea

Saving to Income Ratio

Average Monthly Saved Amount

For most people, 6% to 26% of their monthly income is what they can allocate to their savings, with 12% being the average. The amount of money that people can save is approximately 2,000 ERN on average with savings ranging from 160 ERN to 20,000 ERN.

58% of surveyed singles reported some of their income going to savings while 53% of couples said the same. 48% of families confirmed their ability to save money.

How much money do people actually save in Eritrea?

Singles

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for singles

Interpretation and Analysis

Singles who can afford to save reported that they allocate from 9% to 28% of their monthly income to savings, with 16% being the average for most singles. The average amount of money that singles are able to save is 1,400 ERN with 160 ERN and 9,500 ERN being the minimum and maximum respectively.

Couples

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for couples

Interpretation and Analysis

Couples who confirmed their ability to save reported saving equivalent to 7% to 27% of their monthly income, with 14% being the average for most couples. The average amount of money that couples can save is 2,400 ERN with 790 ERN and 13,000 ERN being the minimum and maximum respectively.

Families

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for families

Interpretation and Analysis

Families in Eritrea can save anywhere between 6% to 25% of their monthly income, with 11% being the average for most families. The average amount of money that families can put aside is 3,200 ERN with 1,100 ERN and 20,000 ERN being the minimum and maximum respectively.

Saving Challenges in Eritrea

Reasons that make it difficult for people to save money

We wanted to understand what is stopping people from maximizing their savings in Eritrea. Listed below are the answers given by the survey participants.

Around 4% of the people said that their salary is too low to accommodate a portion for savings while 7% said that the high cost of living leaves little room for savings. 12% of the residents said that they are burdened with debt and find it challenging to save money. 12% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 12% blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 5% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 22% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 14% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 2% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.

Typical saving choices for people in Eritrea

Where do people choose to put their savings?

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Eritrea

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in Eritrea?

Around 45% of surveyed residents think that living in Eritrea is affordable with proper budgeting while 55% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Eritrea

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options52%

Few low-cost options48%

Based on the survey, 52% of the people living in Eritrea have no problem finding low-cost alternatives to support a frugal lifestyle while 48% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents of Eritrea whether they have an emergency fund and the answers were as follows.

Yes41%

No59%

Based on the survey, 59% of the people living in Eritrea said that they don't have an emergency fund while 41% said that they do.

Financial Literacy in Eritrea

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy40%

We asked residents of Eritrea whether they acquired any adequate personal financial training in their lives. Approximately 60% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 40% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether residents of Eritrea have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 63% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 37% said that they have everything under control.

Struggles with finance63%

Easily manages finances37%

Financial goals of people in Eritrea

In an attempt to understand the economic situation in Eritrea, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 9% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 46% said their number one priority is to pay off high-interest debt or loans and improve credit. 11% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 6% reported that their priority is saving for the tuition fees and education costs of their children while 19% choose to buy a home or pay off existing mortgage before other things. 6% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 5% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 15% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Retirement, pension plans, and life after work in Eritrea

What does the retirement lifestyle look like in Eritrea and how much retirement savings are required?

Retirement age

The retirement age for most employees in Eritrea is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.

Retirement planning and savings

There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.

Retirement Income Distribution

We asked residents of Eritrea about their retirement income sources and below are the results.

Retirement Monthly Expenses in Eritrea

Debt, loans, and mortgages in Eritrea

Percentage of people who are in debt

According to the survey, 36% of the people in Eritrea have some kind of debt, loan, mortgage, or credit card payments while 64% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Eritrea

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 33% of the people's monthly income in Eritrea goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 4% of the debtors in Eritrea pay 60%+ of their income as debt settlement while 20% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 16% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 18% dedicated 30% to 40% of income for same. Things are looking brighter for 9% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Eritrea

7% of debtors in Eritrea confirm that real estate mortgages constitutes the main part of their outstanding debt while 31% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 12% of people and personal loans rose at 45%. Lastly, student loans are the main source of debt for 4% of debtors in Eritrea.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Eritrea

Besides measuring the loan-to-income ratio, we asked residents of Eritrea how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Eritrea

Rent Cost in Eritrea

Monthly Rent Prices

Studio apartment monthly rent cost

570 ERN

860 ERN

2,300 ERN

MINIMUM

AVERAGE

MAXIMUM

$38

$57

$150

1-bedroom apartment monthly rent cost

860 ERN

1,400 ERN

3,400 ERN

MINIMUM

AVERAGE

MAXIMUM

$57

$91

$230

2-bedroom apartment monthly rent cost

1,100 ERN

1,700 ERN

4,600 ERN

MINIMUM

AVERAGE

MAXIMUM

$76

$110

$300

3-bedroom apartment monthly rent cost

1,400 ERN

2,300 ERN

6,200 ERN

MINIMUM

AVERAGE

MAXIMUM

$91

$150

$420

Furnished apartment monthly rent cost

2,700 ERN

6,900 ERN

14,000 ERN

MINIMUM

AVERAGE

MAXIMUM

$180

$460

$910

Townhouse monthly rent cost

2,300 ERN

3,400 ERN

9,800 ERN

MINIMUM

AVERAGE

MAXIMUM

$150

$230

$650

House monthly rent cost

2,700 ERN

6,900 ERN

14,000 ERN

MINIMUM

AVERAGE

MAXIMUM

$180

$460

$910

Villa monthly rent cost

3,400 ERN

8,600 ERN

14,000 ERN

MINIMUM

AVERAGE

MAXIMUM

$230

$570

$910

The monthly rental cost of a studio apartment in Eritrea ranges between 570 ERN and 2,300 ERN, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 860 ERN to 3,400 ERN. Two-bedroom rentals rate ranges between 1,100 ERN and 4,600 ERN per month. The monthly rental for a three-bedroom apartment ranges from 1,400 ERN to 6,200 ERN. The average rent of a townhouse in Eritrea is around 3,400 ERN while house rental costs can be as high as 6,900 ERN per month. Finally, if you want to rent a villa, expect to pay anywhere from 3,400 ERN to 14,000 ERN per month.

Apartment and house prices in Eritrea

Cost of buying a property

Studio apartment price

110,000 ERN

170,000 ERN

340,000 ERN

MINIMUM

AVERAGE

MAXIMUM

$7,600

$11,000

$23,000

1-bedroom apartment price

140,000 ERN

230,000 ERN

860,000 ERN

MINIMUM

AVERAGE

MAXIMUM

$9,100

$15,000

$57,000

2-bedroom apartment price

230,000 ERN

690,000 ERN

1.4M ERN

MINIMUM

AVERAGE

MAXIMUM

$15,000

$46,000

$91,000

3-bedroom apartment price

760,000 ERN

1.1M ERN

3.4M ERN

MINIMUM

AVERAGE

MAXIMUM

$51,000

$76,000

$230,000

Townhouse price

980,000 ERN

2.3M ERN

8.6M ERN

MINIMUM

AVERAGE

MAXIMUM

$65,000

$150,000

$570,000

House price

1.1M ERN

6.9M ERN

9.8M ERN

MINIMUM

AVERAGE

MAXIMUM

$76,000

$460,000

$650,000

Villa price

1.4M ERN

7.6M ERN

11M ERN

MINIMUM

AVERAGE

MAXIMUM

$91,000

$510,000

$760,000

The average price of a studio apartment in Eritrea can range from 110,000 ERN to 340,000 ERN depending on location. One bedroom cost can be anywhere from 140,000 ERN to 860,000 ERN. A villa can cost you 7.6M ERN on average with prices ranging from 1.4M ERN to 11M ERN.

House / apartment prices to income ratio

Property prices in Eritrea can be x73 to x184 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x73 multiples of the average monthly salary in Eritrea.

Rent to income ratio

The average rent-to-income ratio in Eritrea is around 27%. This means that people pay 27% of their income for rent. Those figures can range from 17% to 37% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Eritrea

Energy, electricity, water, gas, internet, and mobile cost in Eritrea

Utility Bill Cost / Electricity + Water + Gas / Individual

40 ERN

290 ERN

1,900 ERN

MINIMUM

AVERAGE

MAXIMUM

$2.7

$19

$130

Utility Bill Cost / Electricity + Water + Gas / Couple

110 ERN

360 ERN

2,300 ERN

MINIMUM

AVERAGE

MAXIMUM

$7

$24

$160

Utility Bill Cost / Electricity + Water + Gas / Family

180 ERN

530 ERN

3,400 ERN

MINIMUM

AVERAGE

MAXIMUM

$12

$35

$230

Internet and cable cost

34 ERN

69 ERN

91 ERN

MINIMUM

AVERAGE

MAXIMUM

$2.3

$4.6

$6.1

Mobile phone bill and charges

27 ERN

46 ERN

140 ERN

MINIMUM

AVERAGE

MAXIMUM

$1.8

$3

$9.1

The average monthly expenditure for individuals on electricty, water, and gas in Eritrea ranges between 40 ERN and 1,900 ERN with average being 290 ERN, meanwhile the expenditure of couples is slightly higher at 360 ERN with 110 ERN and 2,300 ERN being the upper and lower limits respectively. As expected, the energy and water consumption of families is the highest among the three groups with an average of 530 ERN. The cost of internet and WiFi is unchanged among the three groups and ranges from 34 ERN to 91 ERN with 69 ERN being the average internet bill. Finally, the average monthly mobile charges is around 46 ERN but can range between 27 ERN and 140 ERN depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Eritrea is around 7%. This means that people pay 7% of their income for energy, water, internet, and mobile charges. Those figures can range from 4% to 11% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Eritrea

Prices and cost of goods and services in Eritrea

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

6.9 ERN

14 ERN

23 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.46

$0.91

$1.5

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Eritrea is approximatly 14 ERN with meal cost ranging from 6.9 ERN to 23 ERN. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

23 ERN

34 ERN

69 ERN

MINIMUM

AVERAGE

MAXIMUM

$1.5

$2.3

$4.6

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 23 ERN and 69 ERN with 34 ERN being the average price of a plate for one person at a regular restaurant in Eritrea.

Fine dining meal for one price

46 ERN

69 ERN

270 ERN

MINIMUM

AVERAGE

MAXIMUM

$3

$4.6

$18

The price range of a meal at fine-dining restaurant is 46 ERN to 270 ERN with the average cost being 69 ERN for one person. This is what you would expect to pay a top-tier diner in Eritrea.

Beverage prices, cappuccino, latte etc..

5.7 ERN

9.1 ERN

14 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.38

$0.61

$0.91

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Eritrea is around 9.1 ERN. Price ranges between 5.7 ERN and 14 ERN depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

4.6 ERN

5.5 ERN

6.9 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.30

$0.37

$0.46

The average price of a large bottle of milk in Eritrea is 5.5 ERN. The maximum what you would pay for milk is 6.9 ERN and the minimum being 4.6 ERN depending on the brand of milk and other properties.

12 eggs price

3.4 ERN

4.6 ERN

6.9 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.23

$0.30

$0.46

A dozen eggs costs around 4.6 ERN on average with 3.4 ERN and 6.9 ERN being the lower and upper limits respectively.

Fresh whole chicken price

7.8 ERN

10 ERN

14 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.52

$0.67

$0.95

The price range of a fresh whole chicken in Eritrea is between 7.8 ERN and 14 ERN depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 10 ERN.

Pack of beef price

9.1 ERN

14 ERN

27 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.61

$0.91

$1.8

The price of a regular pack of beef or meat is around 14 ERN. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

3.7 ERN

5 ERN

7.1 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.25

$0.34

$0.48

A bag of rice in Eritrea costs around 5 ERN on average with prices rangeing between 3.7 ERN and 7.1 ERN depending on the brand and quality.

Bag of tomatos price

1.4 ERN

1.8 ERN

3.4 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.09

$0.12

$0.23

A bag of tomatoes costs anywhere from 1.4 ERN to 3.4 ERN. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

2.5 ERN

3.2 ERN

5.3 ERN

MINIMUM

AVERAGE

MAXIMUM

$0.16

$0.21

$0.35

A bag of apples costs 3.2 ERN on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Eritrea is around 28%. This means that people spend 28% of their income on grocery and basic household items. The expenditure can range from 20% to 34% depending on salary and location.

Expenditure on food and grocery for every population group

A single person living alone spends approximately 760 ERN per month on grocery and food with expenditure fluctuating between 110 ERN and 5,100 ERN depending on location and the type of person. The average cost of food and groceries for a couple is around 1,100 ERN per month. That number can be get as low as 370 ERN or a high as 5,900 ERN. Families' spending on grocery ranges from 670 ERN to 12,000 ERN with the location, income, and size of the family being the most determinite factors.

SingleSpending habits, consumption analysis, and expenditure patterns for a single person living in Eritrea

CoupleAverage monthly living expenditure breaks and spending patterns for couples in Eritrea

FamilyAverage monthly expenses and break out of spending for families living in Eritrea

StudentCost of living and expenses break down for students living in Eritrea