The Capital City of Chad Ranks as the 2nd Most Expensive City in Africa

N’Djamena is the capital of one of the poorest countries in the World and is the second most expensive expat destination in the region and 19th most expensive worldwide.

The April quarterly update from Xpatulator.com show both N’Djamena and Shanghai, China reached the top 20 for the first time.

While Shanghai has experienced double-digit economic growth in the last 21 years, a metropolis of 24 million people with the world's busiest container port, the 3rd largest stock market in the world and home to China's largest industrial companies. N'Djamena in contrast suffers from an almost non-existent infrastructure, growing shortages of imported goods and regular inflows of refugees from its border with the Central African Republic. However, it has moved up the rankings as expats flow into the country to develop its oil fields.

What makes both of these cities expensive for foreign workers is the increasing demand for imported goods and first world accommodation expectations.

N’Djamena has moved from 181st in April 2013 to 19th in the Xpatulator.com rankings. The most expensive city in the World is Luanda, Angola, another developing oil producer on the African continent.

Xpatulator.com provides up-to-date cost of living data for over 700 locations worldwide.

Top Ten City Rankings for Africa

1. Luanda
2. N'Djamena
3. Abuja
4. Lagos
5. Kano
6. Ibadan
7. Maputo
8. Bangu
9. Bissau
10. Conakry

For the full list of city rankings for the African Region go here.

Singapore - Asia’s Most Expensive City - Is the Cost of Success is Too High

Singapore moves up from third in the first quarter of 2014 to the top spot in the Asia Pacific region and fourth overall most expensive cities in the world for foreign workers. 

Singapore reached the top 20 most expensive in the October 2010 Xpatulator rankings rising to 18th in 2011, 20th in 2012 and 14th in 2013 in the same period. It has climbed to reach fourth most expensive in April 2014.

What has fueled this rise in costs? The influx of foreign workers who have been attracted by high paying jobs at one of the more than 7,000 multinational companies located in Singapore. These expats have until now enjoyed a relatively high standard of living.

However, the rising cost of education, transportation and housing are increasing the cost of living for expatriates and threatening the high standard of living with many economists predicting that the pressure for increased wages will push costs even higher. Even though costs are on the rise for foreign workers, the total percentage of expats has risen from 25% in 2000 to 38% in 2013.

Topping the list for the Asia Pacific region are Hong Kong, China - second, Tokyo, Japan - third, Sydney, Australia - fourth and Shanghai, China - fifth.

Xpatulator.com provides up-to-date cost of living data for over 700 locations worldwide.

Top Ten City Rankings for Asia Pacific

1. Singapore
2. Hong Kong
3. Tokyo
4. Sydney
5. Shanghai
6. Canberra
7. Yokohama
8. Melbourne
9. Osaka
10. Perth

For the full cost of living rankings for Asia Pacific go here.

International Cost of Living Rankings for April 2014

Luanda, Angola retains its #1 ranking making it the most expensive destination in Africa and in the world for expats.  This is due to its costly accommodation where expatriate housing is extremely expensive, and imported produce and international private schooling excessively costly. 

Caracas comes in at #2, this once sort after expat destination has experienced rampant inflation, produce shortages and tight government controls on foreign exchange have pushed it up the rankings. As the World’s fifth largest exporter of oil, Venezuela was once a top destination for skilled foreign oil and gas workers. However Calgary, Canada is now benefiting with an influx of those expats leaving Caracas due to strict government regulations which are limiting the hiring and compensation of these workers, as well as by the soaring cost of living.

Oslo which ranks #3, in contrast to Luanda and Caracas enjoys low inflation, low unemployment, and one the highest GDPs per capita in the World. An expat haven?

Top Ten International Cost of Living - Cities - April 2014

Rank	Country and city	Region	Previous Quarter Rankings
1	Angola, Luanda	Africa	1
2	Venezuela, Caracas	Americas	5
3	Norway, Oslo	Europe	7
4	Singapore, Singapore	Asia-Pacific	13
5	China, Hong Kong	Asia-Pacific	6
6	Switzerland, Zurich	Europe	2
7	Switzerland, Geneva	Europe	4
8	Monaco, Monaco	Europe	11
9	Japan, Tokyo	Asia-Pacific	12
10	Australia, Sydney	Asia-Pacific	17

Top Twenty International Cost of Living Rankings Incl. Countries - April 2014

Rank	All Areas, Country and City	Region	Previous Quarter Rankings
1	Angola, Luanda	Africa	1
2	Venezuela, Caracas	Americas	5
3	Angola, All Areas	Africa	3
4	Norway, Oslo	Europe	7
5	Norway, All Areas	Europe	9
6	Singapore, Singapore	Asia-Pacific	13
7	China, Hong Kong	Asia-Pacific	6
8	Switzerland, Zurich	Europe	2
9	Switzerland, Geneva	Europe	4
10	Venezuela, All Areas	Americas	10
11	Monaco, Monaco	Europe	11
12	Switzerland, All Areas	Europe	8
13	Japan, Tokyo	Asia-Pacific	12
14	Australia, Sydney	Asia-Pacific	17
15	USA, New York (Manhattan) NY	Americas	15
16	Russia, Moscow	Europe	14
17	Bermuda, Hamilton	Americas	18
18	Denmark, Copenhagen	Europe	19
19	United Kingdom, London	Europe	20
20	Liechtenstein, Vaduz	Europe	16

For the full cost of living and regional rankings go here

Understanding Relocation and Cost of Living

Today I spoke to a friend who returned home from an expat assignment, it was his choice to return to his home country and is now battling to adjust to the new standard of living that he finds himself in.

I asked him the fundamental question, did you calculate what you would need to earn on your return?  He said that he had done some basic internet research and got a basic idea but admitted that his calculations were based on on free cost of living websites, his trips back home while on his assignment, his previous costs while living in his home country and what he expected to earn on his return.  He had not considered the extra costs that had arisen during his time away.

It is so important when considering a relocation whether as an expat or moving within your own country, to know that the cost of living will differ from place to place.   The salary you are going to earn is the most important part of the move and how much the change in costs will affect you on a monthly basis.

Use this table to help fill in some of the typical expenses you will experience and include your own list:

Expenditure
Household Expeniditure
Rent / Bond
Utilities (Power, Water, Garbage & Local Tax)
Groceries
Alcohol and Tobacco
Insurance
Security
Communication
Home phone rental
Internet rental
Mobile phones
Transport
Car Repayments
Petrol / Diesel
Insurance
Car Tracking devices
Public Transport Costs
Maintenance for car
Healthcare
Medical Costs
Education
School Costs
Entertainment / Holidays
Monthly entertainment Costs
Holiday savings
Gym Membership
Personal Care
Toiletries
Haircare
Make-up
Miscellaneous Basket
Domesitc / Other Household Help
Newspapers
Dry Cleaning

The figures will vary from person to person for each of these budgeted amounts.  Whether you can stay within your budget and save, or if you exceed these costs depends on the salary offered and the standard of living you select to pursue, which are made through personal purchase choices.  However, what is important to remember is that you will want to maintain the standard of living that you are used to, so the correct calculation for the above budget outline will be of vital importance.

Contrary to common belief, the cheapest places do not always promise the cheapest living costs.

If you compare your salary with the basic cost of living then you could fall into the trap of believing that you will be compensated adequately to cover your budget and still have enough to save. What is cheap and affordable for one person may not be for another. It is for this reason that you need to ensure that you budget correctly and make the right financial decisions before you become an expat or return to your home location.

My friend is still battling to cover his monthly budget and has had to resort to finding extra income.

Xpatulator.com provides four calculators, find the right one for you:
1. Cost of Living Allowance Calculator (COLA): The COLA report calculates how much additional allowance (over and above your current salary) you need to earn in another location to compensate for a higher cost of living, hardship and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location.

2. Cost of Living Index Calculator (COLI): The COLI report calculates cost of living indexes for the locations you select using the home location you specify. You can select between 1 and all host locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location.

3. International Assignment Management Calculator (IAM): The IAM report sets out clear guidelines to make an international assignee/expatriate’s transfer fair and financially viable, taking cognisance of the reward structure and market dynamics of the home and host country. The calculations use the build-up / balance sheet / home based approach and include hypothetical tax, cost of living index, hardship premium, exchange rate, expatriation premium, benchmark housing allowance and benchmark transport allowance. The objective is to ensure consistent equitable treatment and benefits for all expatriate assignees and have a user friendly reward structure to provide seamless coverage for different family scenarios. Recommended for the calculation of the remuneration and benefits for a typical expatriate assignment of a 6 month up to a 5 year duration using your choice of home and host location.

4. Salary Purchasing Power Parity Calculator (SPPP): The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location.

Global Mobility Costs -- Do You Need The Answers?

The days are gone when people remain in one job their entire lives, let alone the same city, people want to move where the work will take them and moving from one country to another is now more common than ever.  These expats are also readily taking up positions in places known for being medium to high hardship locations.

What exactly is Hardship? This is the relative difference an expatriate and their family are likely to experience and the relative impact on their lifestyle when moving between different locations. Measuring the relative quality of living in each location, and assessing the level of difficulty that will be experienced in adapting to each location.
These can include: Economic, Political, Religious, Public Service, Environment/Climate, Personal Safety, Health, Education and Transportation Factors.

The latest Xpatulator.com cost of living survey results out for 2014 show that the countries that are the  cheapest on the global markets are not actually cheap for expats. 

With more and more companies looking at emerging markets, relocation is becoming more prevalent in most multinational firms and more projects are being set up across harsher environments or not so comfortable socio-political zones. There is also the appeal of cities such as LA, New York or Switzerland which will always attract people, no matter how high the cost of living.  Salaries and compensation differ between companies and from one region to another.

If a company wants to retain its talent and curb attrition rates in these trying times, then it has to ensure ongoing career opportunities and growth as well as the right employment benefits. It is the responsibility of the HR department to keep itself updated on changes in the locations under their purview, offer appropriate salaries and benefits that will make for a comfortable expat transition. 

Some of the key benefits include –

• Attractive salary packages
• Medical and other insurance coverage
• Guidance on family, education and social life
• Information on the socio-political and economic situation of the location
• Growth opportunities within the region and company

The Internet and advances in technology have opened up opportunities and markets to global competition. Therefore, it has become even more imperative for companies to attract and retain the best talent in their fields. In order to do so, they need to offer competitive packages to their employees who are the face of the company across the globe.

Luanda in Angola is the most expensive expat destination internationally and although it shows a fall in its currency and an apparent low cost of living, in reality rising inflation and the high cost of imported goods have ensured that it is the most expensive expat destination worldwide. Caracas in Venezuela, is the fourth most expensive for expats due mainly to the massive increase in the inflation rate (between 30 and 40%) in 2013 and severe shortages of imported goods. 

The cities of Zurich and Geneva are still within the top five most expensive expat destinations,  this is mainly due to the high living expenses for expats with a strong and stable currency and lower rentals than last year. 

Asian markets are booming and attracting talent however places such as Tokyo and Singapore still rank high due to their high rental costs.

Companies have to ensure that they offer good compensation for these cities and maintain a healthy bottom line at all times. This means, ideally every zone should work as a profit center for them.
and salary packages that are offered should not compromise their financial stability or their employees’ ability to maintain their standard of living in their new location.

The cost of living variances can be determined by using the correct mobility calculator -- Salary Purchasing Power Parity, Cost of Living Index, Cost of Living Allowance or International Assignment Management.

To know more about the cost of living calculators visit http://www.xpatulator.com/calculators

and to obtain a comprehensive review for each city visit http://www.xpatulator.com/cost-of-living-reviews.

Steven McManus is a Remuneration and Benefits Consultant and founder of  http://www.xpatulator.com where employers and employees can calculate how much they need to earn in another location to have a similar spending power.

Calculators include Salary Purchasing Power Parity (recommended if you are an organization planning to relocate an employee to an international location, or an individual with a job offer in another country), 

International Assignment Management (recommended for the calculation of the compensation and benefits for a typical expatriate assignment of six months up to five years duration using your choice of home and host location), 

Cost of Living Allowance (recommended for calculating a cost of living allowance for short-term assignments and a detailed cost of living comparison basket by basket) and 

Cost of Living Index (recommended for the calculation of 3 or more host location cost of living indexes using your choice of home base city).