The Top 5 African Nations with the Lowest Living Expenses in 2024 (Excluding Rent)

While the high cost of living often dominates economic discussions, a low cost (excluding rent) can offer unique opportunities and advantages for African nations. Business Insider Africa has compiled a list of the top five African countries with the lowest living expenses in 2024, excluding rent, based on data from Numbeo.

1. Libya

Libya tops the list, offering a relatively low cost of living compared to other African nations. This is attributed to factors such as government subsidies on essential goods and services, including food, fuel, and healthcare. The country’s reliance on oil exports, which provide a significant portion of the national income, allows for a relatively low domestic cost of living. While infrastructure in major cities like Tripoli is more developed, smaller towns and rural areas tend to have even lower costs for food, transportation, and entertainment. However, Libya's political instability in recent years has caused occasional disruptions, which may affect the prices and availability of goods in certain areas. Despite these challenges, Libya remains one of the most affordable countries for residents and expats alike.

2. Egypt

Egypt, a popular tourist destination, also ranks high on the list. The country's diverse economy, large agricultural sector, and rich history contribute to its affordability. Costs for local goods such as food, public transport, and utilities are relatively low compared to global standards, making it a great option for those seeking a budget-friendly lifestyle. Cairo, Egypt's bustling capital, is home to millions, but even there, everyday expenses like groceries, transportation, and eating out remain affordable. In addition, the Egyptian government provides subsidies for basic goods, which helps keep living costs down. However, inflation has been a concern in recent years, affecting the cost of imported goods, particularly in cities where international brands are more prevalent.

3. Morocco

Morocco, known for its stunning landscapes, vibrant culture, and rich history, offers a relatively low cost of living, particularly in smaller cities and towns. While the popular tourist cities like Marrakesh or Casablanca may be more expensive due to demand, Morocco's less developed areas remain significantly more affordable. The cost of food, transport, and healthcare in Morocco is considerably low, and many Moroccan locals rely on agriculture as a source of income, which further lowers the cost of locally produced food. In addition, the Moroccan government has implemented various initiatives to support economic growth, particularly in sectors such as renewable energy and infrastructure, which could offer new opportunities for business ventures at relatively low costs. However, the country's proximity to Europe does mean that international goods can be a bit pricier than in other African nations.

4. Tunisia

Tunisia, a North African country with beautiful beaches and historical sites, is another affordable option. Tunisia has a relatively low cost of living, thanks to its strong agricultural sector and ongoing efforts to develop infrastructure and tourism. The government has invested heavily in programs aimed at improving healthcare, education, and transportation, making daily life in Tunisia affordable for residents. Cities like Tunis, the capital, offer a high standard of living at a fraction of the cost of larger metropolitan areas in Europe or North America. In addition, Tunisia’s Mediterranean climate offers a great quality of life for those looking to experience mild winters and warm summers at a low cost. However, like many African nations, Tunisia faces challenges related to political stability and economic reforms that could impact future living costs.

5. Algeria

Algeria, a large North African country with vast natural resources, offers a relatively low cost of living. Government subsidies on essential goods and services, as well as affordable housing, contribute to its affordability. Algerians enjoy low prices on food, transportation, and utilities, making it a viable option for those looking to stretch their budget. The country's rich natural gas and oil resources allow the government to maintain these subsidies, although the economy has been somewhat dependent on oil prices, which can lead to fluctuations in national spending. In larger cities like Algiers, the cost of living can be slightly higher, particularly for imported goods, but smaller towns offer significantly more affordable living conditions. Algeria's cultural heritage, rich history, and beautiful natural landscapes add to the appeal of living there.

Key Considerations for Living in These Countries

It’s important to note that while these countries offer a low cost of living, factors such as income levels, exchange rates, and individual lifestyle choices can significantly impact the overall cost of living. For example, a person’s income relative to the local economy can make a substantial difference in how far their money will go. Additionally, exchange rates between local currencies and stronger international currencies (such as the US dollar or euro) can affect purchasing power, especially for expatriates.

Another key factor is the region within each country. While urban centers often offer more job opportunities and amenities, the cost of living in these areas tends to be higher than in rural or less-developed regions. For instance, a person living in a major city like Cairo or Casablanca might face higher prices for goods and services, compared to those living in smaller towns or villages. Local economic conditions and availability of resources also play a significant role in shaping the overall cost of living.

In conclusion, the top five African countries with the lowest living expenses in 2024 (excluding rent) offer a combination of government subsidies, local resource availability, and economic conditions that contribute to their affordability. These nations provide attractive opportunities for those seeking a budget-friendly lifestyle without sacrificing quality of life. However, it is important to consider factors such as local economic conditions, exchange rates, and the region of residence when assessing the true cost of living in each of these countries.