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

In Africa, the cost of living is a key factor for individuals and businesses when choosing where to settle.

While cities with lower living costs attract budget-conscious residents, they often struggle to draw high-end projects due to a smaller affluent consumer base. Larger, economically vibrant cities drive up costs for essentials like housing and transportation due to high demand.

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However, some cities manage to balance affordability with economic potential, offering lower living costs while providing promising business opportunities, and allowing residents to invest and save more. The challenge remains to blend affordability with economic growth in African urban areas.

According to Numbeo, here are the 5 cities in Africa with the lowest cost of living in 2025

1. Alexandria, Egypt — Cost of living index: 17.9

Alexandria, a port city located on the Mediterranean coast of Egypt, ranks as the most affordable city in Africa in 2025. Its low cost of living index positions it as an attractive destination for both residents and expatriates. The city’s housing, food, and transportation expenses are among the most reasonable on the continent, making it an ideal choice for those seeking affordability without sacrificing access to services and opportunities.

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2. Cairo, Egypt — Cost of living index: 19.6

Cairo, the capital city of Egypt, comes in second in Africa. Known for its rich history and cultural significance, Cairo provides affordable living options across different sectors. The city is home to millions of people, and its affordability is reflected in its lower-than-average housing and utility costs, along with budget-friendly food prices. It remains one of the top destinations for people looking to live in a major city without the high expenses seen in many other global capitals.

3. Tripoli, Libya — Cost of living index: 20.6

Tripoli, the capital and largest city of Libya, ranks third among African cities with the lowest cost of living. Despite the country’s complex political history, Tripoli has managed to keep its living costs low, particularly in housing, transportation, and daily necessities. Its affordability presents an opportunity for those seeking to experience life in a historic city without facing high living expenses.

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4. Algiers, Algeria — Cost of living index: 26.1

Algiers, the capital of Algeria, offers a relatively low cost of living compared to other major cities in Africa. Its cost of living index of 26.1 places it among the more affordable cities, with housing and food prices remaining accessible to residents. While Algiers offers many of the conveniences of urban life, its affordability allows individuals and families to live comfortably while exploring the city’s unique blend of Arab, Berber, and French influences.

5. Kampala, Uganda — Cost of living index: 26.4

Kampala, the capital city of Uganda, rounds out the top five cities with the lowest cost of living in Africa. Known for its vibrant culture and warm hospitality, Kampala offers a relatively inexpensive lifestyle, especially in terms of housing, food, and transport. For anyone seeking an affordable urban environment in East Africa, Kampala presents a compelling option.