THE Angolan capital Luanda, is Africa’s most expensive location for expatriates and the 2nd most expensive in the world, according to latest Cost of Living report.
The survey by ECA International compares the global cost of living for expatriates. Globally, Tokyo regained its top spot among the world’s most expensive cities for expatriates for the first time since 2012.
London dropped out of the top 100 priciest after the pound fell dramatically following the Brexit vote in June.
Luanda has risen from 5th position last year to 2nd place this year. For the past four years, Luanda has been positioned in the top five most expensive locations in the world.
The cost of goods typically purchased by international assignees in Luanda, which were already high due to poor infrastructure and high oil-fuelled demand, have been pushed much higher in the last year as the weak kwanza has pushed up import costs, the report said.
The Angolan capital is followed by the DR Congo’s Kinshasa, which sits at 10th in the global rankings and is the second most expensive African location.
Khartoum, in Sudan, has seen one of Africa’s largest rises in the global rankings this year, up 32 places to 21st position. It has seen the most significant rise in our global rankings out of any African location over a five-year period, rising 164 places.
Nigerian locations have seen the largest fall in the September 2016 survey, tumbling 137 places on average.
Earlier this year, the Nigerian Central Bank abandoned the fixed rate for the naira against the U.S. dollar, leading to a significant currency depreciation.
However, many more African cities are positioned towards the bottom of the ranking.
Maseru in Lesotho, ranked 262nd globally, is the cheapest location not only in Africa but worldwide. The significant depreciation of the rand in the past five years has contributed to the lower positions of South African cities and locations where the currency is tied to the rand, including Lesotho.
Pretoria is 249th in the world while Johannesburg has fallen 34 places over the period and is now in 250th position followed by Cape Town (252nd) and Durban (253rd).
Kenya’s capital, Nairobi, sits in 165th position.