Numbeo, a provider of crowd-sourced global data on quality of life indicators, recently released its cost of living index for Africa, positioning Namibia in second place for Southern Africa, with South Africa and Botswana ranking first and third respectively.

The cost of living index, compiled by Numbeo, takes into account various factors such as housing indicators, perceived crime rates, healthcare quality, and transport quality.

According to Numbeo's latest report, the cost of living index for South Africa is 33.4%, while Namibia and Botswana follow closely at 30.8% and 30.1% respectively.

These figures represent a slight decrease from the previous year, where the cost of living indices was slightly higher at 37.8%, 35.8%, and 34.4% for South Africa, Namibia, and Botswana respectively.

Examining specific factors, the rent index in 2024 saw a slight decrease in all three countries, with South Africa at 14.0%, Namibia at 11.8%, and Botswana at 7.5%. Similarly, the cost of living plus rent decreased from 26.4%, 24.3%, and 21.5% in 2023 to 23.4%, 21.1%, and 18.7% in 2024 for South Africa, Namibia, and Botswana respectively.

Looking at grocery prices, Namibia recorded a slight increase from 30% in 2023 to 30.1% in 2024, while South Africa and Botswana experienced a decrease. Similarly, restaurant prices showed a decrease across all three countries, with Namibia having the lowest index at 27.4% in 2024.

In terms of local purchasing power, South Africa saw growth in 2024 with an index of 84.7%, while Namibia and Botswana recorded indices of 51.4% and 56.5% respectively, indicating an improvement compared to the previous year.

It's worth noting that the cost of living indices provided by Numbeo are relative to New York City, with a baseline index of 100% for New York City.

This data provides valuable insights into the cost of living dynamics in Southern Africa, assisting individuals and policymakers in making informed decisions regarding economic planning and expenditure management.