Faith Nyasuguta
The rising cost of living in African cities has become a pressing concern for residents as 2025 begins. Urban hubs like Lagos, Nairobi, Johannesburg, and Accra face challenges with escalating prices for housing, food, healthcare, transportation, and utilities. This persistent trend reflects broader economic struggles, affecting millions of lives and shaping the development trajectories of these cities.
The financial strain caused by high living costs is particularly evident among low- and middle-income households. Many families are forced to allocate the majority of their earnings to essentials, leaving little room for savings or discretionary spending. This has deepened financial instability, reducing overall quality of life and pushing many into economic hardship.
Businesses, especially small and medium-sized enterprises (SMEs), are not immune to these challenges. Rising operational costs for utilities, office spaces, and employee compensation have stifled growth and profitability. For many entrepreneurs, surviving in such expensive environments has become increasingly difficult, creating a ripple effect on job creation and local economies.
Inflationary pressures are a major driver of the high cost of living, eroding purchasing power and consumer confidence. Persistent inflation undermines economic stability, slows growth, and deepens social inequalities. Urban centers that were once seen as hubs of opportunity are now grappling with the reality of their residents’ financial struggles.
In 2025, cities like Lagos have climbed higher on the cost of living index, reflecting Nigeria’s ongoing economic challenges. Meanwhile, Nairobi and Accra continue to face rising inflation, making basic goods and services increasingly unaffordable.
Addressing the cost of living crisis will require targeted interventions from governments, including policies to stabilize inflation, promote affordable housing, and reduce the financial burden on households and businesses. Without these measures, the economic divide is likely to widen, jeopardizing the growth and prosperity of African cities.
The struggle with affordability highlights the need for innovative solutions to support residents while fostering sustainable urban growth in these high-cost areas.
Top 10 African cities with the highest cost of living in 2025
| Rank | City | Cost of living index | Global rank | Country |
| 1. | Harare | 36.6 | 210th | Zimbabwe |
| 2. | Johannesburg | 33.2 | 232nd | South Africa |
| 3. | Accra | 31.8 | 243rd | Ghana |
| 4. | Casablanca | 31.4 | 245th | Morocco |
| 5. | Cape Town | 31.3 | 248th | South Africa |
| 6. | Pretoria | 31.3 | 249th | South Africa |
| 7. | Nairobi | 30.7 | 251st | Kenya |
| 8. | Lagos | 30.5 | 254th | Nigeria |
| 9. | Rabat | 29.9 | 256th | Morocco |
| 10. | Marrakech | 29.4 | 258th | Morocco |
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