Top 5 African cities with the lowest purchasing power in 2025

One important economic metric that emphasizes how affordable products and services are in a community, in this example, African cities, in relation to income levels is purchasing power.

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

People in low-income African cities find it difficult to pay for necessities, which drastically reduces their standard of living and stymies economic growth.

Greater financial difficulty for residents is indicated by a lower score, which raises poverty levels and causes economic stagnation.

It is frequently difficult for city dwellers with little purchasing power to pay for necessities including housing, healthcare, education, and transportation.

Many are compelled to reduce necessities as a result, endangering their health and general quality of life.

Aside from households, even local companies suffer from a shortage of disposable, cash, as demand for products and services remains low.

Small businesses struggle to stay afloat, entrepreneurship falls, and economic development slows. This sets off a vicious cycle in which firms shut, employment becomes scarce, and financial instability increases.

Households with restricted purchasing power are unable to save or invest, making wealth-building almost impossible. Many families find themselves in debt, unable to afford proper education for their children, adequate healthcare, or emergency bills.

This exacerbates economic inequality and weakens long-term financial stability.

Governments also suffer from decreased tax revenues, since fewer wages and expenditures result in lower collections from value-added tax (VAT), income tax, and corporation tax.

Cities with limited financial resources struggle to invest in public services, infrastructure, and social welfare programs, causing people’s living circumstances to deteriorate even worse.

Furthermore, African cities with little purchasing power struggle to function as commercial or industrial hubs. Local industries remain undeveloped, and reliance on imports grows, reducing regional economic integration and making these cities less appealing to investors.

In essence, poor buying power in African cities causes an economic downturn, making it harder for individuals, businesses, and governments to grow.

With that said, here are the top 5 African cities with the lowest 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.”

PS: Numbeo primarily ranks major cities in Africa that serves as economic hubs.