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Mercer’s 25th Annual Cost Of Living Survey Ranks South Africa As One Of The Least Expensive Cities In The World

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  • 5 min read
  • The world’s least expensive cities are Tunis, Tashkent and Karachi
  • Cities in Asia most expensive locations for employees working abroad

Mercer, a global consulting leader in advancing health, wealth and careers, and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), has released the results of its 2019 Cost of Living survey, ranking cities around the world. Mercer’s 25th annual Cost of Living Survey finds 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.

According to the report, South Africa’s Cape Town and Johannesburg both dropped from 170 to 180 and 177 to 185 respectively. Thus making these cities some of the least expensive in Africa. N’Djamena, Chad takes the lead as the highest-ranking city in Africa. Kinshasa, Dem. Rep. of Congo (22) is in second place, rising fifteen places. Libreville, Gabon (24) is the next African city on the list, followed by Lagos, Nigeria (25), which moved up seventeen places. And despite dropping about 20 places, Luanda, Angola (26) still remains in fifth place.

However, cities like Banjul in Gambia (204) and Windhoek, Namibia (204) are among the bottom 10 cities on the ranking.

“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. Let’s look at it this way, while a city like N’Djamena in Chad has been listed as the 11th most expensive city in the world, whereas Mali comes in at the 124th position in terms of cost of living,” said Yolanda Sedlmaier, Principal Leader – Africa Mobility at Mercer.

Global ranking

In a rapidly changing world, mobility programs have become a core component of multinational organizations’ global talent strategy. Organizations realize that to thrive they must embrace change, adapt to new technologies, and build emerging skills to attract, motivate, and enhance talent.

“In a skill-focused economy driven by digital disruption and the need for a globally connected workforce, deploying expatriate employees is an increasingly important aspect of a competitive business strategy for global companies,” said Ilya Bonic, President of Mercer’s Career business. “There are numerous personal and organizational advantages for sending employees overseas, including career development, global experience, new skillsets, and re-allocation of resources. By offering fair and competitive compensation packages, organizations can facilitate moves that drive business results.”

Mercer’s 2019 Cost of Living Survey finds that eight out of the top ten of the world’s most expensive cities for expatriates are Asian cities, resulting from high costs for expatriate consumer goods and a dynamic housing market. Tokyo (2), Singapore (3) and Seoul (4) top the list, while the costliest city in the world for the second consecutive year is Hong Kong (1). Other cities appearing in the top ten are Zurich (5), Shanghai (6), Ashgabat (7), Beijing (8), New York City (9), and Shenzhen (10). The world’s least expensive cities for expatriates are Tunis (209), Tashkent (208), and Karachi (207).

Mercer’s widely recognized survey is one of the world’s most comprehensive, and 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 survey includes over 500 cities throughout the world; this year’s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.

Mercer produces individual cost of living and rental accommodation cost reports for each city surveyed. For more information on city rankings, visit https://mobilityexchange.mercer.com/Insights/cost-of-living-rankings.

Notes for Editors

The figures for Mercer’s cost of living and rental accommodation cost comparisons are derived from a survey conducted in March 2019. Exchange rates from that time and Mercer’s international basket of goods and services from its Cost of Living Survey have been used as base measurements.

Governments and major companies use data from this survey to protect the purchasing power of their employees when transferred abroad; rental accommodation costs data is used to assess local expatriate housing allowances. The choice of cities surveyed is based on demand for data.
https://mobilityexchange.mercer.com/Insights/cost-of-living-rankings

Mercer Cost of Living Survey – Worldwide Rankings 2019

Mercer Cost of Living Survey – Worldwide Rankings 2019(Mercer international basket, including rental accommodation costs)
Rank as of MarchCityCountry/ Region
20182019
11HONG KONGHong Kong (SAR)
22TOKYOJapan
43SINGAPORESingapore
54SEOULSouth Korea
35ZURICHSwitzerland
76SHANGHAIChina
437ASHGABATTurkmenistan
98BEIJINGChina
139NEW YORK CITYUnited States
1210SHENZHENChina
811NDJAMENAChad
1012BERNSwitzerland
1113GENEVASwitzerland
2114VICTORIASeychelles
1615TEL AVIVIsrael
2816SAN FRANCISCOUnited States
1517GUANGZHOUChina
3518LOS ANGELESUnited States
2319OSAKAJapan
1420COPENHAGENDenmark
2621DUBAIUnited Arab Emirates
3722KINSHASADem. Rep. of the Congo
1923LONDONUnited Kingdom
1824LIBREVILLEGabon
4225LAGOSNigeria
626LUANDAAngola
1727MOSCOWRussia
2527NANJINGChina
2229NOUMEANew Caledonia
2430ABIDJANCôte d’Ivoire
3130CHENGDUChina
2932TIANJINChina
4033ABU DHABIUnited Arab Emirates
4133NAGOYAJapan
2735TAIPEITaiwan
4535RIYADHSaudi Arabia
5137CHICAGOUnited States
5438HONOLULUUnited States
1939BRAZZAVILLECongo
5240BANGKOKThailand
3641QINGDAOChina
5642WASHINGTONUnited States
3243DUBLINIreland
6044MIAMIUnited States
3345MILANItaly
3845SHENYANGChina
3447PARISFrance
6647DHAKABangladesh
7049BOSTONUnited States
2950SYDNEYAustralia
3951VIENNAAustria
4352YAOUNDECameroon
6553BEIRUTLebanon
4854BANGUICentral African Republic
4655ROMEItaly
7956WHITE PLAINSUnited States
7757MANAMABahrain
5058AMSTERDAMNetherlands
7359DJIBOUTIDjibouti
8659HOUSTONUnited States
4761OSLONorway
8562DALLASUnited States
6363ACCRAGhana
9064SEATTLEUnited States
5365HELSINKIFinland
7366DOUALACameroon
5567MUMBAIIndia
5767MUNICHGermany
9569ATLANTAUnited States
7570MONTEVIDEOUruguay
9770MORRISTOWNUnited States
6272DAKARSenegal
9572SAN JUANPuerto Rico
6874FRANKFURTGermany
4975ST. PETERSBURGRussia
9475AMMANJordan
6777BRUSSELSBelgium
10278MINNEAPOLISUnited States
5879MELBOURNEAustralia
6979SANTIAGOChile
7181BERLINGermany
6482MADRIDSpain
9783PORT OF SPAINTrinidad & Tobago
7184LUXEMBOURGLuxembourg
9985ABUJANigeria
5886SAO PAULOBrazil
6187PERTHAustralia
10688CONAKRYGuinea
8189AUCKLANDNew Zealand
11690DETROITUnited States
7991BARCELONASpain
8292DUSSELDORFGermany
11493PANAMA CITYPanama
12294ST. LOUISUnited States
9395LISBONPortugal
7796CANBERRAAustralia
8397PRAGUECzech Republic
12397NAIROBIKenya
12597PITTSBURGHUnited States
88100HAMBURGGermany
117100JEDDAHSaudi Arabia
106102BANDAR SERI BEGAWANBrunei
84103BRISBANEAustralia
117103MUSCATOman
117105JAKARTAIndonesia
125106CLEVELANDUnited States
130107PORTLANDUnited States
142108PHNOM PENHCambodia
87109ADELAIDEAustralia
138109MANILAPhilippines
92111RIGALatvia
109112VANCOUVERCanada
137112HANOIVietnam
101114WELLINGTONNew Zealand
109115TORONTOCanada
115115DOHAQatar
91117YANGONMyanmar
103118NEW DELHIIndia
121119KUWAIT CITYKuwait
124120HO CHI MINH CITYVietnam
99121RIO DE JANEIROBrazil
132121LIMAPeru
105123LYONFrance
120124BAMAKOMali
104125POINTE A PITREGuadeloupe
108126STUTTGARTGermany
89127STOCKHOLMSweden
111128COTONOUBenin
112128ATHENSGreece
128128CASABLANCAMorocco
113131BRATISLAVASlovakia
141131SAN JOSECosta Rica
76133BUENOS AIRESArgentina
165133HAVANACuba
128135BIRMINGHAMUnited Kingdom
130136GUATEMALA CITYGuatemala
134137ABERDEENUnited Kingdom
161138WINSTON SALEMUnited States
147139MONTREALCanada
140140TALLINNEstonia
145141KUALA LUMPURMalaysia
132142LJUBLJANASlovenia
138143ZAGREBCroatia
157144MEXICO CITYMexico
134145LOMETogo
134145OUAGADOUGOUBurkina Faso
148145GLASGOWUnited Kingdom
156148QUITOEcuador
143149NIAMEYNiger
173150KIEVUkraine
145151NUREMBERGGermany
148152VILNIUSLithuania
154153CALGARYCanada
144154CHENNAIIndia
163154ISTANBULTurkey
150156LEIPZIGGermany
164157KINGSTONJamaica
152158BELFASTUnited Kingdom
179159MAPUTOMozambique
165160RABATMorocco
153161LIMASSOLCyprus
160161OTTAWACanada
161161PORT LOUISMauritius
151164BUDAPESTHungary
125165PORT AU PRINCEHaiti
172166TIRANAAlbania
174166SAN SALVADOREl Salvador
188166CAIROEgypt
178169SANTO DOMINGODominican Republic
168170BOGOTAColombia
180171DAR ES SALAAMTanzania
183171ADDIS ABABAEthiopia
154173WARSAWPoland
158174BRASILIABrazil
169175KIGALIRwanda
176176BUCHARESTRomania
175177SOFIABulgaria
186178BAKUAzerbaijan
170179BENGALURUIndia
170180CAPE TOWNSouth Africa
181181BELGRADESerbia
158182COLOMBOSri Lanka
192183KAMPALAUganda
195184ALGIERSAlgeria
177185JOHANNESBURGSouth Africa
183186ASUNCIONParaguay
193187MONTERREYMexico
165188HARAREZimbabwe
182189KOLKATAIndia
189189GABORONEBotswana
187191ALMATYKazakhstan
194192NOUAKCHOTTMauritania
204193BLANTYREMalawi
191194SARAJEVOBosnia and Herzegovina
199195LA PAZBolivia
185196LUSAKAZambia
198197YEREVANArmenia
202198MINSKBelarus
201199TEGUCIGALPAHonduras
200200MANAGUANicaragua
197201SKOPJEMacedonia
203202TBILISIGeorgia
190203ISLAMABADPakistan
196204WINDHOEKNamibia
206204BANJULGambia
207206BISHKEKKyrgyzstan
205207KARACHIPakistan
209208TASHKENTUzbekistan
208209TUNISTunisia

Source: Mercer’s 2019 Cost of Living Survey

Distributed by African Media Agency (AMA) on behalf of Mercer.

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