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

The cost of living index evaluates the affordability of essential goods and services—such as housing, food, transportation, healthcare, and education—within a specific region. This metric directly influences individuals’ quality of life, as higher living costs can strain personal finances, leaving less room for savings or discretionary spending.

In African nations with elevated cost of living indices, low- and middle-income households often face significant challenges in maintaining a comfortable lifestyle. The disparity between affluent and less affluent populations can exacerbate economic inequalities, potentially leading to social unrest and heightened tensions.

For instance, in mid-2024, Nigeria experienced widespread protests driven by young citizens opposing government policies that increased living costs, highlighting the societal impact of economic disparities.

Businesses, particularly small and medium-sized enterprises (SMEs) that are vital to African economies, encounter increased operational expenses due to rising costs in utilities, rent, and wages. These financial pressures can impede business growth and sustainability.

Additionally, countries with high living costs may feel compelled to raise wages to match inflation, which can further drive up prices. Conversely, stagnant wages might prompt skilled workers to seek employment in regions with more favorable economic conditions, leading to a potential brain drain.

High living expenses can also deter foreign investment if investors perceive that profitability will be compromised. However, nations that enhance productivity and develop robust infrastructure may mitigate some of these challenges.

As of early 2025, Numbeo’s data indicates that Ethiopia has ascended to the highest cost of living among African countries, surpassing Mozambique, which experienced a notable decline in its index. New entrants to the top 10 list include Botswana, Somalia, and Rwanda, replacing South Africa, Senegal, and Uganda.

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

These figures underscore the varying economic landscapes across the continent and their implications for residents’ daily lives. Addressing the challenges posed by high living costs requires comprehensive policy measures aimed at reducing economic disparities, controlling inflation, and fostering an environment conducive to both domestic and foreign investment.