9 African Countries with the Highest Cost of Living in 2024
When a country’s cost of living is high, basic needs like housing, healthcare, education, and food become expensive burdens on families. This is because it reduces their disposable income and limits their ability to save or enjoy other aspects of life. This widens the inequality gap within a society. Inherently, a high cost of living can discourage economic growth in Africa.
Typically, Africans should not have to worry about a high cost of living. Africa has a large population with low average salaries. To ensure a decent standard of living for most families, the cost of living ought to be affordable. However, factors such as high inflation rates and poverty cause many African countries to battle a high cost of living. According to the UN, approximately 490 million individuals live below the $1.90 PPP per day poverty line. Egypt, Nigeria, and Ethiopia, three of the largest African economies, have inflation rates above 20 percent. That said, here are the African countries with the highest cost of living.
1. Mozambique
Mozambique takes the top spot with a cost of living index of 45.2. A family of four is estimated to spend $2,344.5 (149,814.9MT) monthly, excluding rent. This southern African nation faces economic instability resulting from high inflation and the aftermath of natural disasters. According to the World Bank, Mozambique is one of the world’s most vulnerable countries to climate-related shocks like cyclones and floods. These disasters typically affect basic things such as transport infrastructure, energy, water supply, and sanitation services.
2. Senegal
Senegal is one African country that has made significant strides in economic development. The country has an African transformation index score of 31.6, above the African average of 30.3. However, the country grapples with a high cost of living index of 45.1. A family of four spends approximately $2,638.1 (1,608,086.1 CFA), excluding rent. Meanwhile, a single person spends about $745.1 (454,212.4CFA). According to a report from Bloomberg, In February 2024, consumer prices in Senegal rose for the second consecutive month to 2.3%
3. Ivory Coast
With a cost of living index of 44.7, Ivory Coast ranks third as the African country with the highest cost of living. Two people eating a three-course meal at a mid-range restaurant would typically spend an average of 25,000 CFA. While the country offers cheaper options compared to Mozambique and Senegal, factors like urbanization and increasing inflation contribute to a higher cost of living. The inflation rate in the Ivory Coast increased to 3.80 percent in March, and it increased from 3.60 percent in February of 2024.
4. Ethiopia
Ethiopia has a cost of living index of 43.1 and ranks the 72nd country with the highest cost of living globally. Ethiopia is the second most populous country in Africa and one of the fastest-growing economies. However, according to the country’s central bank, the National Bank of Ethiopia, inflation is currently at 28.7%. Ethiopia is a low-wage economy and currently does not provide national minimum wages. This makes it difficult for workers to afford food and other basic needs. The ongoing conflict in the Tigray region adds further strain on the economy. The conflict has caused infrastructural damages worth $22.7 billion and $6 billion in productivity losses.
5. Mauritius
When one thinks of Mauritius, it is easily associated with tourism. The sector contributes 8% of its GDP. Mauritius has also successfully transitioned from an agriculture-based economy to a diversified one with a GDP per capita of $31.16 thousand. This ought to translate to an affordable cost of living for the people. However, Mauritius has a cost of living index of 41.1 and ranks the 79th country with the highest cost of living. The cost of living is, on average, 23.3% higher than in Nigeria. Prices for gas, petrol, food, and public transportation make up the highest expenses.
6. Zambia
Zambia’s economy relies heavily on its copper exports. This means that any price swings can impact government revenue and directly lead to inflation. This also means Zambia is consistently treading on a high inflation rate. Last month, its inflation rate increased to 13.80% from 13.70% in March. To worsen the situation, droughts can disrupt agricultural production and food security, pushing up food prices. The inflation in March is Zambia’s two-year high due to the country experiencing its most devastating drought yet. Zambia currently has a cost of living index of 39.8. A family of four spends an estimated $2,320.4 monthly, excluding rent.
7. Cameroon
Cameroon has a cost of living index of 39.6, making it the 8th most expensive African country to live in in 2024z. The country faces challenges with a heavy dependence on imported goods. This makes them vulnerable to global fluctuations. Also, the devaluation of the Central African CFA franc makes these imports more expensive. A family of four spends about $2,390.3 (1,457,044.1CFA) monthly, excluding rent. Meanwhile, a single person spends about $705.3.
8. Zimbabwe
Zimbabwe is the 93rd country with the highest cost of living globally, with a cost of living index of 36.8. The country’s economic history, with hyperinflation, continues to impact the cost of living for its citizens. Its hyperinflationary crisis is reflected in an alarming consumer price index of 561.02%. Zimbabwe currently also has the second highest fuel prices in Africa and occupies the 40th position globally. Zimbabwe’s annual inflation in March reached 55%, a seven-month high, making it the African country with the highest inflation rate in 2024. Last month, the country launched a new currency to help its failing economy gain some stability. However, the impact of this strategy will likely take some time to materialize.
9. South Africa
With a cost of living index of 33.4, South Africa ranks 10th on this list and 104th globally. Since last year, South Africans have faced an intense cost of living crisis, marked by soaring food prices, rising housing costs, and an energy crisis. According to a report from Business Tech, middle-class South Africans need an extra R9,000 every month. However, the cost of living varies significantly within the country. Major cities like Johannesburg and Cape Town tend to be more expensive. For example, the overall cost of living index in Johannesburg is 37.1, while in Durban it is 32.4. The cost of living in South Africa is, on average, 10.6% higher than in Nigeria.
The Bottom Line
Exploring the economic landscape of African countries reveals the complexities and challenges of managing the cost of living. From Mozambique’s struggles with natural disasters to South Africa’s urban pricing disparities, the variance in living expenses across the continent highlights the need for targeted economic policies and interventions.
These ten African countries, each battling with high living costs due to factors like inflation, poverty, and global economic dependencies, offer a compelling snapshot of the broader economic issues facing the continent. For policymakers and economic analysts, these insights serve as a crucial tool in addressing the needs of millions striving for stability and prosperity in Africa’s diverse nations.
This analysis shows the economic pressures and underscores the urgency of sustainable development and inclusive economic planning to ensure that all Africans can achieve a decent standard of living amidst these financial challenges