- Business Insider Africa presents the top 5 African countries with the lowest cost of living in mid-2024.
- This list is courtesy of Numbeo.
- Libya ranks number 1 on the list.
One of the primary advantages of having a low cost of living is that it encourages investment. When people, resources, and general living expenses are lowered, enterprises find it more cost-effective to start operations. This, in turn, encourages foreign direct investment (FDI), which promotes economic growth and job creation.
Furthermore, a low cost of living helps local companies by decreasing entry barriers to a variety of sectors. This creates an ideal environment for small and medium-sized enterprises (SMEs) to grow. As the cost of doing business declines, individuals become more ready to take chances, start firms, and contribute to the diversification of the economy.
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In real terms, the low cost of living fosters a welcoming business environment in addition to the significant benefit of being in an area where everyone can afford basic goods and amenities.
With that said, below are the 5 African countries with the lowest cost of living mid-way into 2024. The data below is courtesy of the Numbeo, one of the world’s most profound data and research platforms, which recently updated its Cost of Living Index.
Since the last time the list was updated, see list here, Nigeria has been removed from the top spot. 11 countries currently have a lower cost of living than Nigeria, which had the lowest cost of living when the year began.
Top 5 African countries with the lowest cost of living mid-2024
| Rank | Country | Cost of living index | Global rank |
|---|---|---|---|
| 1. | Libya | 20.4 | 120th |
| 2. | Egypt | 21.0 | 119th |
| 3. | Tanzania | 23.8 | 116th |
| 4. | Madagascar | 24.5 | 114th |
| 5. | Tunisia | 28.1 | 104th |
Methodology
To collect data, Numbeo relies on user inputs and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, newspaper articles, other surveys, etc.). Manually collected data from established sources are entered twice per year. A more comprehensive breakdown of the methodology is available on Numbeo’s website.