Despite this ranking, the country stands as the 3rd highest in terms of cost of living within the West African region.
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Ghana Ranks 20th in Africa for lowest cost of living amidst regional disparity
Ghana has secured the 20th position among 24 African nations with the lowest cost of living, according to recent data released by Numbeo.
Ghana Ranks 20th in Africa for lowest cost of living
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Numbeo's Cost of Living Index, which takes into account factors like rent, groceries, restaurant purchases, and local purchasing power, placed Ghana's overall score at 26.0.
Specifically, Ghana scored 11.0 for the Rent Index, 18.8 for the Cost of Living Plus Rent Index, 27.2 for the Groceries Index, and 22.9 for the Restaurant Purchase Index. However, the Local Purchasing Power Index for Ghana was 14.8.
While Ghana's cost of living remains relatively low compared to some African countries, neighboring Cote d'Ivoire emerged as the highest in both Africa and West Africa with a score of 44.7, followed closely by Senegal at 44.0%. Ethiopia secured the third position with a score of 43.1, while Mozambique and Mauritius followed closely with scores of 43.0 and 39.8, respectively.
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Ghana's ranking was attributed largely to reduced inflation in 2023 and a slowdown in the depreciation of the Ghana cedi. Despite this, the cost of living in Ivory Coast remains significantly higher, with costs averaging 72.3% more than in Ghana. Rent in Ivory Coast is also approximately 53.6% higher than in Ghana.
On the other hand, the cost of living in Nigeria is notably lower, averaging 53.5% less than in Ghana, with rent also being 8.5% lower on average.
However, despite these figures, Ghana's end-of-year inflation stood at 23.2% in December 2023, with food inflation at 28.7% and non-food inflation at 18.7%.
The Ghana cedi also experienced a year-to-date depreciation of 15.57% against the US dollar in the retail market.
As Ghana navigates its economic landscape, the need to improve revenue outlook has led to the introduction of new taxes, potentially impacting businesses and investor confidence in the medium to long term.
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