With the grim state of the economy in many African countries, the cost of living has skyrocketed, plunging the standard of living.
According to the International Monetary Funds (IMF), in Sub-Saharan Africa, food makes up around 40% of consumption data, which is a yardstick for calculating the consumer price index (CPI). Although there is a difference between inflation and the cost of living, it is also part of the factors contributing to the high inflation in African countries.
Though there are different types of cost of living indexes that employ multiple factors and metrics, the majority of them start with a basic cost of living, which is usually represented by 100. The base can be either a single region’s cost of living. For example, Lagos’ cost of living might be set as 100 or an average of numerous locations’ costs of living. Other regions are compared to the base region and given a cost of living figure based on the comparison. If living in Nairobi is 20% more costly than in the base city, Nairobi’s cost of living number is 120.
The cost of living index contrasts a large city’s cost of living to another region. The index combines the prices of different living expenditures to provide an overall gauge that newcomers to the workforce may use as a standard.
According to these analysts, here is a list of African countries with the highest cost of living.
According to the data, Seychelles tops the board of African countries with the highest cost of living at 65.93, representing a drop from its 2021 position, when it had 74.07.
Senegal is a country in West Africa formally known as the Republic of Senegal. Coupled with the fact that it is not part of the countries with the highest inflation, the living cost is high at 50.25. The country also experienced a shift as it was 51.54 last year, thus ranking at the second position this year from its third position.
Formally the State of Libya, Libya is a nation in North Africa’s Maghreb area. In 2021, the country ranked at the second position at 53.59. It, however, reduced to 48.35% with an inflation level of 8%.
The cost of living in Ethiopia dropped from 48.89 in 2021 to 47.49 in 2022, changing its position from the fifth to fourth. Late last year, the country’s inflation rose to 35.1% from 33%. According to Ethiopia’s Central Statistical Agency, the increase was attributable primarily to food costs. Food costs, in particular, jumped to 41.6% in December, up from 28.9% in November the previous year.
Also known as Côte d’Ivoire, it is a West African country known for its beaches, rainforests, and French colonial history. In 2021, it was at the fourth position at 50.95. This year, it is at 47.03 and ranked fifth.