City living comes with its perks, but it also entails a variety of costs. For residents and those contemplating a move, understanding these costs is crucial. Numbeo, a leading data and research platform, has ranked Accra as the 7th most expensive city to live in, with a score of 32 out of 100. This ranking considers several indicators, including rent, groceries, restaurant prices, overall cost of living, local purchasing power, transportation, and market prices.
Accra’s Cost of Living
Ranking and Score
Accra’s position as the 7th most expensive city in Africa reflects its relatively high cost of living compared to other cities on the continent. With a score of 32 out of 100, Accra is marked by substantial expenses across various essential categories.
Key Indicators
- Rent: Rent prices in Accra are a significant contributor to its high cost of living, affecting both locals and expatriates.
- Groceries: The cost of groceries in Accra is notably high, adding to the overall monthly expenses for families and individuals.
- Restaurant Prices: Dining out in Accra comes at a premium, with restaurant prices being one of the highest in Africa.
- Overall Cost of Living: The combined costs of housing, food, transportation, and other necessities place Accra among the top expensive cities.
- Local Purchasing Power: Despite the high costs, Accra has a relatively stronger local purchasing power compared to some other African cities.
- Transportation: Public and private transportation costs add to the financial burden of living in Accra.
- Market Prices: The general market prices for goods and services are higher, influenced by various economic factors.
Detailed Cost Estimates
Family of Four
For a family of four living in Accra, the estimated monthly cost of living, excluding rent, is approximately $2,124.5 or GH¢32,625.74. This includes expenses such as groceries, transportation, utilities, and other necessary expenditures.
Single Person
A single person in Accra can expect to spend around $590.4 or GH¢9,068.85 per month, excluding rent. This estimate covers basic living expenses like food, transportation, and personal care.
Comparison with Other African Cities
South African Cities
South Africa dominates the list of expensive cities in Africa, with Johannesburg being the most expensive, followed by Pretoria, Cape Town, and Durban. These cities have high living costs due to factors like advanced infrastructure, higher wages, and economic activities.
Lagos, Nigeria
Lagos, Nigeria’s largest city, ranks as the 4th most expensive city in Africa. Despite the high cost of living, Lagos has a lower local purchasing power compared to Accra, affecting residents’ ability to afford goods and services.
Casablanca, Morocco
Casablanca, Morocco, ranks 6th on the list, with a cost of living influenced by factors such as housing prices, food costs, and transportation expenses.
Factors Influencing Rising Costs
The rising cost of living in many African cities, including Accra, can be attributed to several factors:
- Currency Fluctuations: Changes in currency value impact import costs and overall price levels.
- Inflation: Persistent inflation drives up the cost of goods and services.
- Removal of Subsidies: The removal of subsidies on essential commodities like fuel leads to higher prices.
- Increased Taxes: Higher taxes on goods and services contribute to the overall cost of living.
Comparison Between Accra and Lagos
Restaurant Prices
When comparing restaurant prices between Accra and Lagos, it is noted that prices in Lagos are 9.0% lower than in Accra. This difference can make dining out more affordable for residents of Lagos.
Local Purchasing Power
Local purchasing power in Lagos is 17.4% lower than in Accra. This means that despite lower prices, the average income and ability to purchase goods and services in Lagos are less compared to Accra.
The cost of living in Accra, as highlighted by Numbeo’s ranking, underscores the economic dynamics at play in many African cities. Understanding these costs is essential for residents, expatriates, and policymakers. As economic policies and global trends continue to evolve, the cost of living in African cities will remain a critical area of focus. Continued efforts to manage inflation, stabilize currencies, and provide economic support can help mitigate the rising costs and enhance the quality of life for urban dwellers across the continent.