New report, on Wednesday, rated Lagos as the fourth Most Expensive Cities in Africa, moving up 17 places from last year’s ranking by research firm, Mercer.
Mercer said the rating was influenced by a number of factors, including currency fluctuations, cost of inflation for goods and services, and volatility in accommodation prices.
N’Djamena, Chad, had the highest ranking in Africa, followed by Kinshasa in the Democratic Republic of Congo and Libreville, Gabon in second and third places, respectively.
The survey has ranked Hong Kong as the world’s most expensive city for expatriates for the second year running, with eight of the top 10 cities being from Asia, including Tokyo (2), Singapore (3), Seoul (4), Shanghai (6), Ashgabat (7), Beijing (8) and Shenzhen. Ashgabat is the capital of Turkmenistan.
According to the report, in comparison with other cities in the world, Lagos, Nigeria, continues to remain attractive for foreign investments despite being one of the most expensive in Africa.
“Having moved up 17 places from last year’s ranking, Nigeria’s commercial hub is one of Mercer’s top five costliest cities in Africa,” the report said.
The Principal Leader, Africa Mobility at Mercer, Yolanda Sedlmaier, said each African country had its own unique economy.
Mercer’s 2019 Cost of Living Survey also found that eight out of the top 10 of the world’s most expensive cities for expatriates were Asian cities, resulting from high costs for expatriate consumer goods and a dynamic housing market.
It stated that Tokyo, Singapore, and Seoul were top on the list, while the costliest city in the world for the second consecutive year was Hong Kong.
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,” Sedlmaier said.
Hong Kong has been named the world’s most expensive city for expatriates for the second year running, according to an annual report by consulting firm Mercer.
Eight of the top 10 cities named in the Cost of Living survey are in Asia, up from six entries in 2018. Hong Kong’s red-hot housing market and fluctuations in its currency—which is pegged to the strong U.S. dollar—kept the city at the top of the list. Tokyo came in second, followed by Singapore, Seoul, Zurich and Shanghai.
Several cities in the United States climbed in the rankings due to the dollar’s strength. New York jumped four places to break into the top 10, while San Francisco and Los Angeles took 16th and 18th place respectively. Many European cities dropped down the rankings as local currencies weakened against the dollar, not helped by concerns over economic outlook, the escalating trade war and Brexit unease.
London slipped four spots to take 23rd place, Paris came in 47th, and the German cities Berlin, Dusseldorf and Stuttgart all fell significantly.
The ranking looks at 209 cities around the world, measuring the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
It’s aimed at helping multinational companies and governments determine compensation packages for the skilled foreign workers they send or hire overseas. New York City is used as the base for all comparisons, and currency movements are measured against the U.S. dollar.