Ad image

Top 10 countries with the lowest cost of living for Q2 in 2025

Moritus Peters
7 Min Read
Top 10 countries with the lowest cost of living for Q2 in 2025

Africa, a continent of breathtaking landscapes, rich cultures, and vibrant economies, is also home to some of the most affordable places to live in the world. Whether you’re a digital nomad, expatriate, or budget-conscious traveller, these ten African nations offer an unbeatable combination of low living costs, unique experiences, and economic accessibility.

From North Africa’s Mediterranean charm to East Africa’s lush highlands and West Africa’s bustling cities, each country on this list provides a distinct lifestyle at a fraction of the cost found in many Western nations.

According to NUMBEO, here are the Top 10 countries with the lowest cost of living in 2025

1. Libya

Topping the list is Libya, where the cost of living is astonishingly low. With a Cost of Living Index of just 18.6 and an ultra-cheap Rent Index of 3.9, daily expenses and housing are among the most budget-friendly in the world. The combined Cost of Living Plus Rent Index is 12.1, making it ideal for long-term stays. Groceries are reasonably priced (22.8), and dining out is a steal (13.9). Despite these low costs, Libyans enjoy a relatively strong Local Purchasing Power Index of 51.6, meaning salaries stretch further here than in many neighbouring countries.

Read Also: Here are African countries with the lowest cost of living in 2024

2. Egypt

Famous for its pyramids and the Nile River, Egypt is also a haven for budget-conscious expats. With a Cost of Living Index of 19.0 and an almost negligible Rent Index of 3.5, living here is incredibly economical. The combined living and rent index is just 12.2, ensuring affordability across the board. Groceries (19.7) and restaurant meals (18.2) are wallet-friendly, though the Local Purchasing Power Index (21.1) suggests that wages are modest compared to living costs. Still, Egypt remains a top pick for history lovers and budget travellers alike.

Read Also: Top 10 African countries with high personal income tax

3. Madagascar

Known for its unique wildlife and stunning landscapes, Madagascar offers a Cost of Living Index of 20.7 and a Rent Index of 4.5, resulting in a combined living and rent index of 13.5. Groceries (21.6) and dining out (14.3) are remarkably cheap, though the Local Purchasing Power Index (15.0) is low, meaning locals may find expenses tighter than expats with foreign income. For those seeking adventure in an exotic yet affordable setting, Madagascar is a dream destination.

Read Also: Top 10 fastest-growing economic sectors in Africa 

4. Algeria

With a Cost of Living Index of 24.5 and one of the lowest Rent Indexes (3.4) in Africa, Algeria balances affordability with urban convenience. The combined index is 15.2, while groceries (33.2) and restaurant prices (14.5) remain reasonable. The Local Purchasing Power Index (34.5) is solid, making Algeria a great choice for those who want city comforts without the high costs.

5. Tunisia

Tunisia blends European influences with North African affordability. Its Cost of Living Index (25.5) and Rent Index (4.6) lead to a combined index of 16.3, keeping life affordable. Groceries (31.0) and dining out (16.1) are accessible, while the Local Purchasing Power Index (34.7) ensures decent financial flexibility. Whether you prefer coastal towns or historic medinas, Tunisia delivers value at every turn.

6. Uganda

With a Cost of Living Index of 26.0 and a Rent Index of 8.5, Uganda offers an overall index of 18.2, making it one of the most affordable East African nations. Groceries (28.3) and restaurant meals (24.7) are inexpensive, though the Local Purchasing Power Index (16.4) suggests modest earnings. For nature lovers and expats seeking low-cost living near stunning national parks, Uganda is a prime choice.

7. Nigeria

Africa’s largest economy, Nigeria, has a Cost of Living Index of 26.0, but its Rent Index (21.8) is higher due to urban demand. The combined index (24.4) is still reasonable, with groceries (31.8) and dining (21.6) remaining budget-friendly. However, the Local Purchasing Power Index (10.6) is the lowest on this list, meaning locals may struggle more than expats with foreign income. For those drawn to vibrant cities like Lagos, Nigeria offers excitement at a fraction of global prices.

8. Morocco

From the Sahara to the Atlas Mountains, Morocco is as affordable as it is stunning. With a Cost of Living Index of 27.2 and a Rent Index of 7.1, the combined index is 18.3. Groceries (28.8) and restaurant meals (22.2) are reasonably priced, and the Local Purchasing Power Index (41.7) is strong, giving residents good financial flexibility. Whether in Marrakech or coastal Essaouira, Morocco offers an unbeatable mix of culture and cost-efficiency.

9. Kenya

Kenya’s Cost of Living Index (28.2) and Rent Index (7.6) result in a combined index of 19.1, keeping life affordable. Groceries (30.2) and dining (25.0) are manageable, while the Local Purchasing Power Index (35.1) ensures decent financial comfort. With Nairobi’s urban energy and Mombasa’s coastal charm, Kenya is ideal for those seeking a balanced, budget-friendly lifestyle.

10. Namibia

Closing the list is Namibia, with a Cost of Living Index of 29.3 and a Rent Index of 11.4, leading to a combined index of 21.4—still affordable globally. Groceries (31.3) and dining (28.9) are pricier than others here, but the Local Purchasing Power Index (62.2) is Africa’s highest, meaning residents enjoy strong financial leverage. For those seeking stability and stunning desert landscapes, Namibia is a top contender.

Share This Article
Mortius Peters is a result driven data scientist, data analyst, journalist, and writer at BusinessDay Media Limited, where he works in the Audience Engagement department. He holds a degree in Chemical Engineering from the Federal University of Technology, Owerri, Imo State, Nigeria. Mortius combines data science, journalism, and storytelling to gently guide readers toward solving real-world challenges through insightful and engaging content. He currently specializes in crafting listicles that illuminate economic and financial issues, making complex data accessible and actionable. As a passionate researcher and financial analyst, he sees data as the cornerstone of sustainable development and economic growth.