When multinational companies expand in Africa, they often send employees to the continent on assignment. All things are not created equal when it comes to the most expensive and cheapest cities for expats. How much companies pay their transplanted employees depends a lot on fluctuations in currency, inflation and accommodation prices.
New York City-based human resources consulting firm Mercer has carved out a niche for itself for the last 22 years by compiling data that help big companies decide what to offer by way of expat packages.
Mercer’s 22nd annual Cost of Living Survey factors in currency fluctuations, inflation for goods and services, and instability of accommodation prices in its comparisons, ranking 209 countries. New York City is used as the base city for all comparisons and currency movements are measured against the U.S. dollar. The cost of more than 200 items is compared in each location, including housing, transportation, food, clothing, household goods, and entertainment.
“Deploying expatriate employees remains an increasingly important aspect of a competitive multinational company’s business strategy,” said Ilya Bonic, president of Mercer’s talent business, in a prepared statement. “However, with volatile markets and stunted economic growth in many parts of the world, a keen eye on cost efficiency is essential.”
Hong Kong is the most expensive city for expats, bumping Luanda, Angola, which held that spot in 2015, to No. 2 in 2016. Two other African cities ranked in the top 10 most expensive for expats, including Kinshasa, Democratic Republic of Congo, at No. 6 and N’Djamena, Chad, at No. 9 out of 209 countries.
Below we’ve listed the 10 cheapest places to live out of 209 cities around the world if you’re an expat, according to Mercer.