The contrast between the local cost of living and the expatriate experience in Africa is stark. While the continent offers an array of opportunities and experiences, the financial aspect of living here can't be overlooked. Understanding the factors that contribute to the high cost of living in these cities can help expatriates prepare for their African adventure. Whether it's for work or the lure of experiencing life on this diverse continent, navigating the costs wisely can make all the difference.
Despite Africa being home to some of the world's poorest countries with low local living costs, expats face a different reality. The lifestyle international workers are accustomed to comes at a high price here. Why? Well, it's mostly because of the need to import goods, secure safe housing, and access international standard schooling. All these factors drive up living costs significantly.
As at October 2024, the latest global cost of living rankings from Xpatulator.com, Monrovia has the highest expat cost of living in Africa, followed by Libreville and N'Djamena. The prices for over 200 goods and services is collected globally in 780 locations and used for international assignment salary calculations and global mobility compensation planning.
Nigeria continues to experience a sharp decline in global cost of living rankings for October of 2024, particularly in cities like Abuja, Lagos and Kano. The international cost of living index for Abuja has plummeted from 88.5 in October 2023 to 66.7 a year later in October 2024, using the prices for over 200 items, in 13 cost of living baskets, priced in US Dollars for global comparison. The root of this decline can be traced to the volatility of the Nigerian naira, unleashed by the government's decision to ease currency controls in June 2023. This move sent shockwaves through the economy, leading to foreign exchange reserves hitting a six-year low by December 2023. The naira itself ranked as the third worst-performing global currency of 2023. A backlog of unsettled forwards, undelivered promises of dollar inflows, and a two-decade peak in inflation exacerbate the already precarious situation.
No comments:
Post a Comment