With early 2025, the cost of living in some African cities is increasing for residents and citizens. Business Insider Africa introduces the top ten cities in Africa with the highest cost of living in 2025. This list is provided by updated data from Numbeo. Harare ranks number one on the list. Cities such as Lagos, Johannesburg, Nairobi and Accra deal with high costs of housing, food, transportation, health care and utilities in 2024.
The high cost of living reduces the purchasing power of the household, making it difficult for many to pay for essential items such as food and transportation, and have little money to spend on savings or discretionary expenses. The gap between income and costs increases low- and middle-income people, reduces their quality of life and puts families into financial instability. In addition, enterprises, especially small and medium-sized companies (small and medium-sized enterprises), are affected by high cost of living.
These businesses are forced to pay more for utilities, office spaces and employee benefits. Therefore, this hinders their expansion and reduces profitability. The high cost of living often reflects a broader inflation trend, which can undermine the stability of the local economy. Continued inflation will undermine consumer confidence and reduce spending, slow down economic development and exacerbate citizens’ suffering. That being said, according to the latest data from Numbeo, this is the most expensive African city in 2025 with the highest cost of living. Compared to the same period last year, Lagos is not in the top 10, but Nigeria’s business hub is now ranked 9th.
