Luanda, capital of Angola, is the most expensive expensive city to live in the world.
Hong Kong was knocked of the list by the African city in Mercer’s annual Cost of Living survey, which is “designed to help multinational companies and governments determine compensation allowances for their expatriate employees”. The survey measures the comparative cost of more than 200 items in 209 cities in five continents, whether that is housing, transportation, food, clothing, or entertainment. In Luanda, security and goods are especially expensive.
To rent a two bedroom apartment in Luanda, you might end up paying about US$6,800 per month – according to the newspaper the Financial Times. This is in stark contrast to Angola’s GDP per head – which is just $7,700 per year. So would the average Angolan only be able to rent a two bed flat one month a year? It’s not quite as simple as that.
The survey is based on expat living. To entice employees to relocate to the country, companies offer generous packages. There isn’t much high quality housing. So businesses know they can charge expats more for products and services.
If you’re looking for a cheaper place to live, then Africa could be the place for you. Lagos came 29th while Tunis, capital of Tunisia, was named the least expensive city in the world. Blantyre in Malawi and Windhoek, Namibia, were also in the bottom ten.