In Mekelle, shops are reopening, and banks are resuming services, but residents remain anxious about what comes next. Ethiopian federal forces and allied fighters retook the Tigray regional capital on October 4, as renewed fighting raised fears that the region’s fragile recovery could be derailed once again.

Tigray, in northern Ethiopia, is still recovering from the 2020–2022 war between federal forces and the Tigray People’s Liberation Front (TPLF), the region’s dominant political movement. For residents, the return of fighting has brought new uncertainty over jobs, education, security and the future. Daily life resumes, but hardship remains.

Businesses and financial services are gradually reopening in Mekelle, but many households are struggling to afford necessities. Delayed salaries have left public employees struggling to cover food, rent and school costs, while years of conflict have depleted family savings.

“Things may be reopening, but that does not mean our problems are over. We still have expenses every day, and without our salaries, it is difficult to know how we will manage,” said Gebregziabher, a public servant in Mekelle.

The funding crisis has affected the wider public sector. In March, Tigray’s interim administration said it could no longer cover monthly salaries for about 137,000 civil servants because expected federal budget transfers had not arrived. In April, the regional finance bureau reported an 8.5-billion-birr (about $52,000) funding shortfall affecting salary payments and development projects.

For many residents, the reopening of businesses offers only a partial return to normality. Without reliable incomes and greater security, everyday expenses remain difficult to manage.

Students fear losing more time For students in Tigray, renewed fighting has revived fears of another interruption to their education. Many already lost valuable study time during the previous war and worry about falling further behind.

In Adigrat, Shewit, a grade 10 student, said uncertainty about classes and security had left him worried about his future.

A street in Mekelle, where residents are trying to resume daily life despite economic hardship and fears of further conflict [Al Jazeera]“I have already lost so much time because of the war. I am afraid that if our education is disrupted again, I will lose another year and fall further behind,” he said.

Some university students have left Tigray for Addis Ababa, Ethiopia’s capital, to seek transfers to other public universities. The Ministry of Education announced temporary placements at universities elsewhere in the country for students enrolled at institutions in Tigray. More than 5,000 returning students had applied by September 17–18, according to reporting on the ministry’s programme. Abel, a third-year student at Axum University, travelled to Addis Ababa to request a transfer.

“I didn’t want to leave, but I also can’t keep putting my education on hold. I came to Addis to see if I can transfer to another university and continue my studies. I just want to finish what I started,” he said.

For students who have already lost years to conflict, the uncertainty means more than interrupted classes. It threatens to delay graduation and make an already difficult path to employment even harder.

Border communities fear a wider conflict Near the Eritrean border, military movements and conflicting accounts of troop deployments have heightened fears that the fighting could spread beyond Tigray.

On October 8, The Associated Press reported claims by a commander allied with Ethiopia’s government that Eritrean troops had entered Adigrat earlier that week and Idaga Hamus the following day. The AP said it could not independently verify those accounts. The conflict-monitoring organisation ACLED separately reported Eritrean troops crossing the border at Zalambessa.

On October 13, Reuters reported that Ethiopian government forces had advanced into Zalambessa, citing people in contact with residents and other sources. The report said it remained unclear whether Eritrean troops or Tigrayan opposition fighters were still present in the town. The differing accounts underscored the difficulty of establishing control of individual towns as the fighting shifted.

Daily life slowly resumes in Mekelle, but delayed salaries and a lack of safety continue to weigh on residents [Al Jazeera] The developments have unfolded amid worsening relations between Addis Ababa and Asmara. On October 8, Ethiopia’s foreign minister, Gedion Timothewos, accused Eritrea of sending troops as far as 60km (37 miles) into Ethiopian territory in several areas of Tigray and appealed to the United Nations Security Council to respond.

Eritrea has denied invading Ethiopian territory. Its government said Ethiopia’s accusations amounted to a declaration of war and called on the Security Council to take action against Ethiopia. The competing claims have raised fears that renewed fighting in Tigray could lead to a direct confrontation between the two neighbours.

Ethiopia and Eritrea fought on the same side during the 2020–2022 Tigray war, when Eritrean forces supported the federal government against the TPLF. Their deteriorating relations have added a regional dimension to the renewed conflict.

In Zalambessa, residents are watching developments with concern. One resident, who declined to be named, said the uncertainty made it difficult to know what to expect in the coming weeks.

An uncertain road ahead On October 16, Ethiopian Prime Minister Abiy Ahmed announced a six-month caretaker administration for Tigray, tasked with restoring public services, helping displaced people return and preparing the region for elections. The announcement followed the federal forces’ takeover of Mekelle and other major towns.

The federal government says the temporary administration will help restore stability and pave the way for elected regional leadership. The TPLF has opposed the federal advance, and it remains uncertain how effectively the new administration will operate across the region.

For residents, the immediate concerns are whether salaries will be paid, schools and health facilities will function, and displaced families will be able to return safely.

In Zalambessa, Gebrehiwot said residents knew from experience what another conflict could bring.

“People are worried because we know what war means for this area. We have already suffered enough, and nobody wants to see things reach that point again,” he said.