Top 5 cities in Africa with highest cost of living in 2025

As 2025 continues to unfold, rising living costs remain a major concern in several African cities, including Lagos, Johannesburg, Nairobi, and Accra. In 2024, high expenses for housing, food, transportation, healthcare, and utilities affected residents, and this trend is expected to persist.

The increased cost of living has reduced household purchasing power, pushing many into financial instability. SMEs are also struggling with higher operational costs, hindering their growth. These challenges reflect broader inflationary trends that are impacting local economies and slowing growth.

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According to Numbeo’s updated data, Lagos now ranks 9th, up from outside the top 10 last year. Douala, Addis Ababa, and Durban have fallen off the list, while Nairobi and Accra remain.

Here are the top five cities in Africa with the highest cost of living in 2025

1. Harare, Zimbabwe — Cost of living index: 36.6

Harare, the capital of Zimbabwe, ranks as the city with the highest cost of living in Africa in 2025. The city’s cost of living index stands at 36.6, ranking 210th globally. Zimbabwe’s economic challenges, including inflation, have made everyday essentials more expensive for residents. Despite this, the city remains a cultural hub with a mix of modern and traditional influences.

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2. Johannesburg, South Africa — Cost of living index: 33.2

Johannesburg, South Africa’s largest city, follows closely with a cost of living index of 33.2, ranked 232nd globally. Johannesburg is an economic powerhouse in Southern Africa, attracting people for both business and leisure. However, the city’s high cost of living is influenced by factors such as housing demand, transportation costs, and utilities.

3. Accra, Ghana — Cost of living index: 31.8

Accra, the capital of Ghana, ranks third on the list with a cost of living index of 31.8, placing it 243rd globally. Ghana’s economy has been growing in recent years, but it has also seen rising inflation and demand for goods and services. As a result, the cost of living in Accra has increased, affecting many residents.

4. Casablanca, Morocco — Cost of living index: 31.4

Casablanca, a major economic and business centre in Morocco, has a cost of living index of 31.4, making it the fourth most expensive city in Africa. Ranking 245th globally, Casablanca has experienced rising prices in housing and transportation. As the country’s largest city, it plays a key role in Morocco’s economy and attracts many international businesses.

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5. Cape Town, South Africa — Cost of living index: 31.3

Cape Town, another city in South Africa, ties with Pretoria for the fifth spot with a cost of living index of 31.3, ranked 248th globally. Known for its stunning landscapes, Cape Town also faces significant living costs due to the high demand for accommodation and limited affordable housing options.