Access to basic necessities—such as food, housing, transport, and healthcare, is a key factor not only in people’s standard of living but also in a country’s overall economic health.
To assess the situation as of mid-2025, the specialized platform Numbeo released its latest update ranking countries with the lowest cost of living.
This ranking is based on several detailed indicators, including the average prices of food products, housing costs (rent or purchase), transportation expenses, utilities, and healthcare costs. It also considers local purchasing power, comparing average salaries to the cost of these essential goods and services.
As of mid-2025, Tunisia ranked 8th out of 24 African countries analyzed, with a cost of living index of 27.5.
Globally, it stands at 111th out of 139 countries surveyed.
The top 5 cheapest countries in Africa are: Libya with an index of 17.2, Egypt (19.6), Madagascar (22.2), Tanzania (21.1) and Uganda (25.4).
These rankings are largely due to low local prices, particularly for food, housing, and transport, and to weaker purchasing power, which tends to keep overall costs down.
Just ahead of Tunisia, Algeria is 7th in Africa with an index of 26.8, while Morocco ranks 11th at 30.
On the opposite end, the most expensive African country as of mid-2025 is the Democratic Republic of Congo, with a cost of living index of 46.5.
Globally, Libya also ranks as the cheapest country in the world, ahead of Pakistan (17.7), India (19), Afghanistan (19.1), and Egypt. These countries typically have emerging economies where general prices remain low, especially for essential goods.
In contrast, the most expensive country in the world at mid-2025 is the Cayman Islands, with a record index of 108.2.
Known for its tax haven status and high standard of living, it is followed by Switzerland (106.8), Iceland (94.5), the Bahamas (85.4), and Singapore (85.3), all developed economies with very high prices and living standards.
