The top 10 most expensive cities in Africa are listed by Business Insider Africa.
Numbeo is the source of this list.
One of the four indices used to calculate a city’s cost of living is the purchasing power index.
Africa has become a shining example of economic opportunity in recent years, shattering preconceived notions and historical narratives.
The continent’s economy is expanding, which is a credit to its adaptability, inventiveness, and nations’ shared will to bring in a new era of wealth. It also serves as a gauge of its natural and human resources.
Africa’s economic growth and development are still on a trajectory that places a premium on purchasing power.
Companies and people may position themselves to not only tap into a massive market but also contribute to the sustainable economic growth of the continent by taking the time to understand the distinctive elements influencing consumer behavior in Africa.
One of the most comprehensive data and research platforms in the world, Numbeo, claims that the average net pay in each given region serves as the basis for the index of local purchasing power. With a domestic purchasing power of 40, inhabitants’ average wage can buy 60% fewer goods and services than that of average salary holders in New York City.
The total cost of living for cities worldwide is calculated using the local purchasing power index in addition to four additional indices. The rent index, the cost of living plus rent index, the food index, and the restaurant pricing index are further metrics. The complete cost of living index is calculated as the weighted average of these scores.
With that said, below are the 10 African cities with the highest purchasing power.