Addis Ketema, meaning New Town in Amharic, due west of Arada, is best known for its open market, Merkato, which competes with Roque Santeiro in the Angolan capital Luanda and Oshodi market in Lagos (Nigeria) for the title of largest market in Africa.

Here it is possible to find literally everything, from spices to fabrics, gold jewellery to western-style clothes. The area also boasts a large grain market near Amanuel Mental Hospital, the only specialist psychiatric hospital in Ethiopia. Somali Tera, between Merkato and Arada, is the place to go for spare parts for cars. The central wholesale fruit and vegetable market, Atikilt Tera, is also located in this part of town. Local shopkeepers and stallholders live in poor conditions in the densely populated residential areas on the edge of Merkato or in more salubrious accommodation in the neighbouring Kolfe district on the far side of the ring road bordering the area to the west. There is little available rental accommodation in this area.

The local roads are heavily congested with people and traffic a problem compounded by the presence of the citys long-distance bus station in the heart of the area and security is not as good as in other parts of the city. The Grand Anwar Mosque, a small synagogue and numerous Orthodox Christian churches are located in this area.