The Hayli Gubbi volcano in the Afar region of Ethiopia erupted on Sunday morning, leaving the neighbouring village of Afdera covered in dust.
A local administrator, Mohammed Seid, said there were no casualties but the eruption could have economic implications for the local community of livestock herders.
Seid told the Associated Press that there was no previous record of an eruption by the Hayli Gubbi volcano and that he fears for the livelihoods of residents.
"While no human lives and livestock have been lost so far, many villages have been covered in ash and as a result their animals have little to eat," he said.
The Toulouse Volcanic Ash Advisory Centre in France also reported the eruption, which it observed on satellite imagery.
The Afar region is prone to earthquakes and resident Ahmed Abdela said he heard a loud sound and what he described as a shock wave.
"It felt like a sudden bomb had been thrown with smoke and ash," he said.
The village near the Danakil desert, which is a tourist attraction, was still covered in ash on Monday and tourists and guides heading to the desert were stranded in the village, according to Abdela.
The local authorities shared photos and videos of a towering ash plume rising from the volcano.
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