Economic growth and development challenges in Ethiopia were further exacerbated by reduced household incomes, business closures and decreased demand for goods and services as a result of the Covid-19 crisis. While several studies confirm the adverse effects of the pandemic on Ethiopia's economy and in other countries, most examinations document the effect of the global health crisis from a macroeconomic perspective using an economy-wide model and simulation analyses. In spite of these projections and some emerging studies based on phone surveys, empirical evidence about the effect of the pandemic on household incomes and welfare is limited, partly because the pandemic is still unfolding and detailed consumption surveys are not widely available in Africa.