- Harare, Zimbabwe, has the highest cost of living 2025, followed by Johannesburg, South Africa.
- The cost of living report by city, 2025, is courtesy of NUMBEO.
- Factors such as inflation, global tensions, and government policies, including subsidies and monetary policy challenges, affect the cost of living.
Several African countries are facing the highest cost of living due to a combination of economic factors that affect both prices and purchasing power.
The growing gap between the developed world and Africa is a clear indication of poor economic policies and deep-rooted corruption, leading to inequality and deplorable living conditions. However, factors such as high inflation rates and government policies have pushed the cost of living to other levels.
Some of the key reasons leading to the never-ending high cost of living in Africa are economic instability and inflation, supply chain disruptions occasioned by the ogoing global conflicts, particularly in Eastern Europe, leading to shortages and increased cost for basic commodities.
According to the International Monetary Fund (IMF), an estimated 12% of sub-Saharan Africa’s population were to experience food insecurity by the end of 2024. The scarcity drives up food prices, thus contributing to the overall cost of living.
Additionally, Africans have the lowest nominal minimum wages in the world, which remain relatively the same, especially given the rising cost of living. While nominal wages in urban areas may be high, they often do not pace up with the rising cost of living. This creates a situation whereby a significant portion of households spend their income on necessities, leaving little room for savings.
Government policies, including the removal of subsidies and monetary policy challenges, have had a ripple effect on the cost of living in Africa. For instance, in Kenya, the current president removed subsidies upon assuming office on essentials like fuel and food as part of economic reform. This pushed the cost of living to another level, especially in Nairobi, leaving households with little disposable income.
The removal of subsidies could mean long-term sustainability; they often lead to immediate price increases that negatively affect low-income households. Similarly, banks across different Afircna countries have put measures in place to manage inflation, including increasing interest rates, which also leads to economic activity slowing down.
Harare, Zimbabwe, is the most expensive city in Africa, according to the recent cost of living report by NUMBEO. Zimabbwe experienced a flactuating inflation in late 2024, with the December rate reported at 3.7%, a notable decrease from 11.7% in the previous month.
This is a huge decline compared to October 2024, when inflation soared to 37.2% due to a sharp devaultion of the newly introduced gold-backed currency, the Zimabwe Gold (ZiG).
Zimbabwe faced extreme inflation in 2022, with the highest peak reaching as high as 285% in mid-2022. This was driven by factors such as currency depreciation and external shocks like global commodity price increases.
Harare’s cost of living index is at 36.6, the highest in Africa, and is ranked 210th globally. Johannesburg, South Africa, is the second-most expensive city in Africa in 2025 and 232nd globally, with the cost of living indexed at 33.2. Accra, Ghana, is ranked at position three and 243rd globally. Accra’s cost of living index is at 31.8.
