Global Courant 2023-04-19 16:45:39
African countries have unique challenges when it comes to the cost of living. But in the end, it all comes down to factors such as economic policy, inflation and the cost of essential goods and services. These are the main culprits that determine how much it costs to live in an African country. When the economy is doing well, the demand for goods and services will increase, which usually means a higher cost of living. And over time, inflation will drive up the prices of everything, making it even more expensive to live there. Unfortunately, the high cost of living can hit hard for those on fixed or low incomes, making it difficult to make ends meet, let alone afford basic necessities or save for the future. This can also make it difficult to access crucial services such as healthcare and education.
On the other hand, low cost of living is crucial to the economic stability of any country. It affects living standards, purchasing power and investment opportunities. Keeping costs low can stimulate economic growth, with increased demand leading to increased production, employment and a thriving economy. It can also make it easier for companies to operate in the country by reducing their operational costs. Numbeo, a data and research platform, determines a country’s overall cost-of-living index by considering factors such as the rent index, the grocery index, the restaurant index, and the cost-of-living plus rent index, along with an estimate of consumer goods prices, including rent and local purchasing power. With this data, let’s explore the African countries with the highest and lowest cost of living.
African countries with the highest cost of living
Senegal
Senegal has the highest cost of living in Africa. The cost of living index is 46.4 and the local purchasing power is 21.7. A family of four estimated monthly cost is $2,451 without rent. In 2022, Dakar, the capital and largest city of Senegal, was ranked as the most expensive city to live in Africa. taking into account the prices of consumer goods. According to the IMFSenegal had an average inflation rate of 9.7 percent last year, the highest rate in decades. However, the body also expects the country’s economic activity to recover in 2023 and inflation to moderate.
Ivory Coast
Ivory Coast is one of the fastest growing economies in the western region of Africa, with a fast growing middle class. The country is ranked as the 19th most expensive country in Africa, with a cost of living index of 42.7 and local purchasing power of 7.8. In the capital Abidjan, the cost of living is generally higher than in other parts of the country. According to Numbeo, the cost of living in Ivory Coast is generally highest in Abidjan, the country’s largest city and economic capital. However, towns like Bouake, Daloa and San Pedro are relatively affordable compared to Abidjan.
Ethiopia
Located in the Horn of Africa, with a population of over 110 million people, the cost of living in Ethiopia is relatively high with a general index of 42.3 and a local purchasing power of 11.6. food prices in Ethiopia are relatively high. This is due to a number of reasons, such as limited agricultural land, poor infrastructure and insufficient access to markets. As a result, the cost of food products such as grains, fruits and vegetables is higher than in other countries. Housing is another major cost item in Ethiopia. Demand for housing in Ethiopia’s urban areas often exceeds supply, leading to high rents.
Mauritius
With a population of about 1.3 million people, the cost of living in Mauritius varies depending on the city and region, with the capital, Port Louis, being the most expensive. The cost of living index in Mauritius is 42.2 and the local purchasing power is 30.8. The average cost of a one-bedroom apartment in the city center is about $360 per month, while a three-bedroom apartment in the same area can cost about $914 per month. The cost of groceries in Mauritius is also relatively high, with an index score of 56.37. A loaf of bread costs about $0.53, while a liter of milk costs about $1.13. While the cost of living in Mauritius can be relatively high compared to other African countries, the island nation also offers a high quality of life. For example, the country has a well-developed healthcare infrastructure, with modern hospitals and clinics providing high-quality medical care. According to the World Health OrganisationMauritius has one of the best healthcare systems in Africa, with a high life expectancy at birth of 71 years (males) and 78 years (females).
Zimbabwe
Zimbabwe currently holds the position as the African country with the highest interest rates. At 150%, it is the most expensive country in the world to borrow money from. For the entire second half of 2022, the country held on to a 200% interest. Inflation in the country has shown a downward trend in recent years. According to Numbeo, Zimbabwe’s cost of living index is 40.8 and local purchasing power is 18.7. It is important to note that the country has faced economic challenges in recent years, including high rates of inflation and currency instability.
African countries with the lowest cost of living
Egypt
Egypt is ranked as the 78th country in the world and is generally lower than many other countries, especially in terms of housing and transportation. The cost of living index in Egypt is 21.6 and the local purchasing power is 21.9. According to the Numbeo, the average monthly rent for a one-bedroom apartment in Cairo is about $220. The cost of groceries and food is also relatively low, with a meal in a mid-range restaurant costing about $5-$6.
Libya
While Libya has the potential to be a relatively affordable country due to its natural resources and small population, ongoing political and economic instability has caused prices to fluctuate significantly. The cost of living index in Libya is 24.2 and the local purchasing power is 32.1. Libya is the 167th country in the world. The average monthly rent for a one-bedroom apartment in the capital Tripoli is about $607. However, the cost of living in Libya is heavily impacted by ongoing political and economic instability, which can make prices unpredictable and increase significantly over time. can fluctuate.
Tunisia
According to Numbeo, Tunisia is a relatively cheap place to live, with a cost of living index of 26.5 and a local purchasing power of 30.0. Tunisia is ranked as the 92nd country in the world, with prices for goods and services falling in the mid-range compared to other countries. The average monthly rent for a one-bedroom apartment in the capital Tunis is about $259. The cost of groceries and food is also moderate, with a meal in a mid-range restaurant costing about $9. A one-way ride on public transportation costs about $0.21.
Ghana
The cost of living index in Ghana is 26.7 and the local purchasing power is 17.2. Ghana is ranked as the 101st country in the world in terms of cost of living. The report indicates that the average monthly rent for a one-bedroom apartment in the capital city of Accra is about $292. The cost of groceries and food is also relatively low, with a meal at a mid-range restaurant costing around $10. A one-way ride on public transportation costs about $0.34. While taxis and ride sharing services average around $2.53. While the cost of living in Ghana is generally lower compared to many other countries, salaries and wages can also be lower, making it important for individuals to budget and plan accordingly.
Algeria
Algeria is ranked as the 81st country in the world in terms of cost of living. The cost of living index is 27.6 and the local purchasing power is 26.9. the average monthly rent for a one-bedroom apartment in the capital Algiers is about $270. The cost of groceries and food is also moderate, with a meal at a mid-range restaurant costing about $11 and a domestic beer costing about $ 1.50. Transportation costs are also moderate, with a one-way ride on public transportation costing around $0.37. Taxis and ride-sharing services average $0.60 for a short ride. However, the country’s economy has faced some challenges in recent years, which may affect the availability and affordability of certain goods and services.
