Top 10 African countries with the highest cost of living in mid-2025

Business Insider

2 days ago

The cost of living has progressively risen in many African countries, with some seeing alarming increases in food, transportation, utilities, healthcare, and education.
Business Insider Africa presents the top 10 African countries with the highest cost of living in mid-2025.
This list is courtesy of Numbeo.
Ethiopia ranks number 1 on the list.
While inflation and global market changes have contributed, bad economic management, currency devaluation, subsidy elimination, and an overreliance on imports have exacerbated the problem.
A high cost of living is more than simply an annoyance; it is a long-standing economic problem that exacerbates poverty, decreases the middle class, reduces productivity, and, eventually, jeopardizes national stability.
As African nations strive for development and inclusive growth, tackling this serious issue must take precedence.
The cost of living is the amount of money required to meet a basic standard of living, which includes housing, food, healthcare, education, and transportation.
When costs rise faster than income levels, citizens' real purchasing power declines, making daily life more difficult.
In recent years, the cost of living in Nigeria, Ghana, Kenya, and Zimbabwe has skyrocketed.
In Nigeria, fuel prices increased from ₦180 to over ₦1,000 per liter after subsidy reductions, affecting food and transportation expenses.
When the cost of living rises, it typically disproportionately impacts low-income and disadvantaged groups.
Items such as food, housing, and transportation become pricey, more families slip into poverty. Meanwhile, the rich may protect themselves against inflation, exacerbating the wealth gap and social injustice.
Ultimately, this lowers people's quality of life, pushes them to make difficult trade-offs, and decreases their capacity to save or invest for the future.
For entrepreneurs and small enterprises, a high cost of living entails greater operating costs (utilities, transportation, and salaries) and decreased consumer expenditure.
This reduces business margins, inhibits investment, and impedes employment growth.
History has proven that when necessities become costly, unrest increases.
From food and gasoline price demonstrations to labor strikes, a high cost of living may quickly spark widespread discontent, putting governments under enormous strain.
With that said, here are the African countries with the highest cost of living mid-way into the year, as per data from Numbeo.
Top 10 African countries with the highest cost of living in mid-2025
Rank Country Cost of living index mid-2025 Global rank
1. Ethiopia 43.2 53rd
2. Botswana 39.5 65th
3. Mozambique 38.9 66th
4. Ivory Coast 38.8 69th
5. Somalia 38.7 70th
6. Cameroon 36.2 76th
7. Mauritius 35.6 80th
8. Zimbabwe 34.7 83rd
9. Rwanda 34.6 85th
10. Zambia 33.8 91st