“Each African country has its own unique economy and this is why multinationals need not approach their expatriate packages for Africa with one single strategy,” said Yolanda Sedlmaier, Principal Leader – Africa Mobility at Mercer.
Sedlmaier’s comment came on the back of a study from her outfit which helps companies assess the costs of relocating employees abroad.
The cost of living is usually considered as the amount of money one needs to sustain a certain standard of living by affording the basic necessities and expenses such as housing, food, taxes and healthcare. This is often used to compare how expensive it is to live in one city compared to another.
U.S. firm Mercer recently released the results of its 2019 Cost of Living survey, ranking cities around the world. The Mercer Annual Cost of Living Survey measures the most expensive locations for employees working abroad. It price-checks 200 items, including costs like rent, utilities, petrol, food, alcohol, transport and telecommunications.
The survey is designed to help multinational companies and governments determine compensation allowances for their expatriate employees. New York City is used as the base city for all comparisons, and currency movements are measured against the US dollar.
The firm’s 25th annual Cost of Living Survey found that a number of factors, including currency fluctuations, cost of inflation for goods and services, and volatility in accommodation prices, contribute to the overall cost of expatriate packages for employees on international assignments.
Ranking 209 cities, including 42 in Africa, the human resources consulting firm found that Asian cities continue to dominate the list of most expensive locations for working abroad. Hong Kong was named the world’s most expensive city for expatriates for the second year running.
Below are Africa’s top 5 most expensive cities to live in: