Luanda: Luanda, once known for its high cost of living, is no longer counted among the world's most expensive cities, as per a recent report by Mercer. According to Angola Press News Agency, the "Ranking of Cities with the Highest Cost of Living in 2024" indicates a significant shift in Luanda's economic landscape. The Angolan capital, which topped the global charts from 2010 to 2020, has seen a marked decrease in living costs, surpassing cities like New York, London, and Hong Kong in affordability. The report attributes this change primarily to the devaluation of the exchange rate and adjustments in international costs measured in dollars. Analysts also point to structural changes within Angola's economy, such as a more balanced real estate market, increased national production, and a slowdown in inflationary pressures. These developments have positioned Luanda more favorably, potentially boosting Angola's appeal to foreign investors by lowering operational costs for multinational companies and other sect ors. Mercer's findings also highlight other African cities like Bangui, Djibouti, and N'Djamena as new leaders in costliness for expatriates, ranking 14th, 18th, and 21st globally. These cities surpass major global economic hubs such as Paris and Amsterdam due to factors like institutional fragility and high dependency on imports. Conversely, cities like Blantyre, Lagos, Abuja, Windhoek, and Durban have become more accessible, with Abuja now recognized as the world's most affordable city for expatriates. This shift illustrates a broader trend in Africa, where living costs are influenced by currency devaluation and economic shifts, rather than mere economic size. Mercer's study, using New York as a benchmark, evaluates costs across 226 cities globally, considering more than 200 items and services. The data underscores how limited infrastructure can drive up costs for expatriates in certain locations, despite overall economic conditions.
