Top 5 African cities with the highest purchasing power in 2025

Purchasing power is an important economic indicator that affects the affordability of products and services in a community, including within African cities, compared to income levels.

Business Insider Africa presents the top 5 African cities with the highest purchasing power in 2025.
This list is courtesy of Numbeo.
Pretoria, South Africa, ranks number 1 on the list.

In African cities, strong purchasing power means that inhabitants may spend more of their average net pay, improving their quality of life and promoting economic activity.

Given that buying power is tested against global standards, a score of 40 means locals can purchase 60% less goods and services than those in New York City, a higher score indicates citizens’ financial well-being.

When African cities have strong purchasing power, inhabitants can purchase basic goods and services including housing, healthcare, education, and transportation without breaking the bank.

This provides a higher standard of living, lowers poverty, and improves general societal well-being.

As people’s disposable income grows, local businesses prosper as demand for products and services rises.

This promotes economic growth, supports entrepreneurship, and develops a thriving commercial environment that benefits both small and large businesses.

Households with increased purchasing power can save and invest more, which promotes wealth-building and financial stability.

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Families may invest in their children’s education, pay for better healthcare, and save for the future without becoming overly dependent on debt.

Governments profit from more tax revenue from value-added tax (VAT), income tax, and corporation tax when citizens earn and spend more.

The city’s economy may be strengthened even more by reinvesting this extra money in public welfare initiatives, social services, and infrastructure.

African cities with strong buying power can help stimulate intra-African trade by serving as commercial and industrial hubs. With more financially secure consumers, local industries may prosper, lowering reliance on imports and promoting regional economic integration.

With that said, here are the top 5 African cities with the highest purchasing power in 2025, according to Numbeo’s index, which shows the relative purchasing power in a certain city based on the average net pay.

“A domestic purchasing power of 40 means that residents with an average salary can afford, on average, 60% less goods and services compared to residents of New York City with an average salary.”