Wealth

Cost of living: South African cities vs the world

Staff Writer

 ·21 Jun 2015

A weakening rand has seen South Africa’s two largest cities rank among the cheapest in the world when it comes to cost of living for expatriates.

This is according to a new report conducted by US consulting and financial services company, Mercer, based on a basket of 200 goods and services including housing, entertainment, food, transport and education.

The 2015 Cost of Living Rankings identifies 207 global cities where multinational companies can assess how much to pay their employees.

New York is used as the base city, and all cities are compared against it. Currency movements are measured against the US dollar.

While both Joburg (17th) and Cape Town (8th) are ranked among the cheapest cities in the world for expats, both have climbed the list from 2014.

The rand, during that time has weakened substantially against the dollar, from R10.61 in June 2014, to a high of R12.57 so far in June 2015.

In South America, Buenos Aires (19) climbed 67 places to rank as the costliest city this year due to a strong price increase for goods and services. The Argentina capital and financial hub is followed by São Paolo (40) and Rio de Janeiro (67).

Cities in the United States climbed dramatically in the cost of living ranking due to the strengthening of the US dollar against other major currencies.

While New York (16), the highest-ranked city in the region, remained the same as last year, cities on the West Coast, including Los Angeles (36) and Seattle (106) climbed 26 and 47 places, respectively.

London (12) remained steady, while Paris (46), Vienna (56), and Rome (59) fell in the ranking by 19, 24, and 28 spots, respectively.

Tel Aviv (18) continues to be the most expensive city in the Middle East for expatriates, followed by Dubai (23), Abu Dhabi (33), and Beirut (44), which have all climbed the 2015 ranking.

Several cities in Africa continue to rank among the most expensive, reflecting high living costs and high prices of goods for expatriates.

Luanda (1) remains the most costly city in Africa and globally, followed by N’Djamena (10), Victoria (17), and Libreville (30).

The 10 most expensive cities in the world

The 10 cheapest cities in the world

In March, Mercer’s annual Quality of Living survey revealed, perhaps surprisingly, that Durban ranks above the country’s traditional economic powerhouse of Johannesburg, and Cape Town.

In the global ranking, Durban was listed 85th out of 230 cities, with Cape Town (91st) placing just above Johannesburg (94th).

More on cost of living in SA

Cost of living: South Africa vs the world

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