13 Cities In Africa With The Lowest Cost Of Living
By Dana Sanchez Published: April 27, 2016, 9:10 pm
Nelson Mandela Square, Johannesburg. Photo: Dana Sanchez
Multinational companies frequently send employees to Africa so they can better compete in markets where skills are in short supply.
“As the global economy has become increasingly interconnected, close to 75 percent of multinational organizations are expecting long-term expatriate assignments to remain stable or increase over the next two years to address business needs,” said Ilya Bonic, senior partner and president of Mercer’s Talent business.
The world’s largest human resources consulting firm, New York City-based Mercer Mercer is a subsidiary of global professional services firm Marsh & McLennan.
Mercer’s Cost of Living survey helps multinational companies and governments determine how much they should pay their expat employees, the company said.
The survey includes 207 cities in five continents and measures the comparative cost of more than 200 items in each location including housing, transportation, food, clothing, household goods, and entertainment.
“Aligning workforce and mobility strategies by ensuring the right employees are in the right places is more critical than ever to manage globalization,” Bionic said. “Properly compensating employees on international assignments is as important as it is costly.”
Several cities in Africa rank among the most expensive, reflecting high living costs and high prices of goods for expats. Luanda (No. 1) remains the most costly city in Africa and the world, followed by N’Djamena (No. 10), Victoria (No. 17), and Libreville (No. 30).
The figures for Mercer’s cost of living and rental accommodation costs comparisons are derived from a survey conducted in March 2015.
Governments and companies use data from the survey to protect the purchasing power of their employees when transferred abroad; rental accommodation costs data is used to assess local expat housing allowances. The choice of cities surveyed is based on the demand for data.
Below we’ve ranked 13 cities in Africa with the lowest cost of living. No. 1 on this list — the city in Africa with the lowest cost of living — ranked 206th out of 207 countries, only slightly more expensive than Bishkek, Kyrgyzstan. Below we’ve also shown whether each city rose or fell in the rankings compared to the previous year.
13. Nouakchott, Mauritania
Rank 2015: No. 173 out of 207 countries
Rank 2014: No. 191 out of 207 countries
12. Port Louis Mauritius
Rank 2015: No. 174 out of 207 countries
Rank 2014: No. 165 out of 207 countries
11. Rabat Morocco
Rank 2015: No. 175 out of 207 countries
Rank 2014: No. 163 out of 207 countries
10. Dar es Salaam Tanzania
Rank 2015: No. 179 out of 207 countries
Rank 2014: No. 178 out of 207 countries
9. Lusaka Zambia
Rank 2015: No. 180 out of 207 countries
Rank 2014: No. 174 out of 207 countries
8. Algiers Algeria
Rank 2015: No. 181 out of 207 countries
Rank 2014: No. 124 out of 207 countries
7. Kampala Uganda
Rank 2015: No. 184 out of 207 countries
Rank 2014: No. 194 out of 207 countries
6. Blantyre Malawi
Rank 2015: No. 186 out of 207 countries
Rank 2014: No. 201 out of 207 countries
5. Gaborone Botswana
Rank 2015: No. 188 out of 207 countries
Rank 2014: No. 197 out of 207 countries
4. Johannesburg South Africa
Rank 2015: No. 191 out of 207 countries
Rank 2014: No. 203 out of 207 countries
3. Cape Town South Africa
Rank 2015: No. 200 out of 207 countries
Rank 2014: No. 205 out of 207 countries
2. Banjul Gambia
Rank 2015: No. 202 out of 207 countries
Rank 2014: No. 199 out of 207 countries
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