A low cost of living (excluding rent) in African countries offers unique opportunities and advantages that can enhance residents’ quality of life, promote economic development, and foster social equality. This metric takes into account essential expenses such as food, transportation, utilities, and healthcare, allowing families to allocate more funds towards savings, investments, and discretionary spending.
Excluding rent from the cost of living calculation further amplifies the benefits. While rent is a significant portion of household expenses, having a low cost of living without factoring in rent provides substantial relief and financial flexibility.
Moreover, a low cost of living can attract foreign investors and expatriates to African countries. Investors and individuals are more inclined to choose locations where operational and personal costs are manageable, making countries with a low cost of living more appealing for business and residential purposes.
According to Numbeo’s Cost of Living Index (Excl. Rent), several African nations have been recognized for their affordability. This index measures consumer prices for groceries, dining, transportation, and utilities, excluding housing costs. The following are the top five African countries with the lowest cost of living (excluding rent) in 2024:
1. Egypt: Cost of living index 12.7, Global rank 2nd
2. Libya: Cost of living index 12.7, Global rank 3rd
3. Tanzania: Cost of living index 16.4, Global rank 8th
4. Madagascar: Cost of living index 16.5, Global rank 9th
5. Algeria: Cost of living index 16.9, Global rank 10th
It is important to note that Numbeo’s index focuses on the main economic centers of African countries rather than the continent as a whole. The low cost of living in these nations presents promising opportunities for residents, investors, and expatriates looking for affordable and sustainable living environments.
