The High Cost Of Living In Angola

Angola is a relatively expensive place to live, with costs for a family of four estimated to be around 3,005,364 Kz or 2,826.1$ per month, excluding rent. Luanda, the country's capital, was once ranked alongside global economic giants like Singapore and Tokyo in terms of the cost of living, but it has since dropped to 158th place out of 226 cities in the 2024 Mercer Cost of Living City Ranking. While this indicates that Luanda is now more affordable than it used to be, it is still a pricey city to reside in, with high costs for accommodation, transport, groceries, and entertainment.

The average salary after tax is $2804

Angola has one of the fastest-growing economies in the world, with an 11% annual GDP growth between 2001 and 2012. The country has vast oil and gas resources, hydro-electrical potential, and agricultural potential. Despite this, Angola remains a poor country, with a GDP per capita of just $7,700 per year.

The average salary after tax in Angola is $2804, which is 1.19 times less than the global average. This equates to around 3.2 months' worth of living expenses. The average monthly salary before tax is 262,000 AOA, with salaries ranging from 66,100 AOA to 1,170,000 AOA. The median salary is 237,000 AOA, meaning that 50% of the population earns less than this amount.

The cost of living in Angola is relatively high compared to other countries. Luanda, the capital city, was previously ranked as the most expensive city in the world by Mercer's "cost of living" ranking. However, it has since dropped to 158th place out of 226 cities surveyed in 2024. The high cost of living in Luanda is due to a gulf between supply and demand, with low supply and a lack of secure housing driving up rental prices.

Accommodation and private schooling are likely to be the highest expenses for anyone moving to Angola. The cost of transport, groceries, and healthcare can also be high, especially for expats who may require private healthcare and imported goods. Eating out and entertainment costs vary, with high-end restaurants and bars in Luanda being expensive, while local eateries offer more affordable options.

Luanda is the world's most expensive city

Luanda: The World's Most Expensive City

Luanda, the capital of Angola, has been dubbed the world's most expensive city for expats, according to the advisory firm Mercer. In 2017, it topped Mercer's annual cost-of-living survey, beating out other notoriously pricey cities like Hong Kong, London, and Singapore. While it has since dropped in the rankings, it still held the 158th spot out of 226 cities surveyed in 2024. So, what makes Luanda so expensive?

Housing Costs

One of the primary factors contributing to Luanda's high cost of living is the cost of housing, particularly for expats. The supply of high-quality, secure housing falls short of meeting the demand, driving up rental prices. The limited supply is partly due to the country's history of civil war, which destroyed much of its infrastructure. As a result, expats can expect to pay a premium for accommodation, with prices for a three-bedroom house in an appropriate neighbourhood reaching up to $13,000 per month.

Transportation

Transportation costs in Angola can vary significantly. While public transportation is affordable, it is often unreliable due to overcrowding and irregular service. Many expats opt for private taxis or hire personal drivers, which can be more comfortable but come at a higher price. Additionally, due to road conditions, those who choose to drive their own vehicles must contend with high fuel prices and maintenance costs.

Groceries and Entertainment

Groceries in Angola, especially imported goods, can be surprisingly expensive. Local markets offer reasonably priced fresh produce and locally sourced meats, but Western-brand products can be significantly costlier due to import taxes and logistical challenges. Eating out in Luanda also offers a range of options, from budget-friendly local eateries serving traditional Angolan cuisine to high-end restaurants and bars that rival those in major Western cities.

Education and Healthcare

Education and healthcare are two areas where the cost of living in Angola can rise significantly. The standard of local public and private schools is often considered inadequate, leaving only expensive international schools as an option. Healthcare in Angola also presents challenges, with the public system being under-resourced and understaffed, leading many expats to turn to costly private medical facilities.

In conclusion, while Luanda may not be the most expensive city in the world for locals, the high demand for luxurious housing among expats, coupled with a limited supply, drives up the cost of living. Additionally, the recovery of the oil economy and the country's dependence on oil exports further contribute to the high expenses incurred by expatriates.

The high cost of accommodation is due to a notable gulf between supply and demand

Angola's capital, Luanda, was once ranked as the most expensive city in the world. Although it has since dropped to 158th place out of 226 cities in the 2024 Mercer Cost of Living City Ranking, the cost of living in Angola is still notably high. This is particularly true for expats, who typically require luxurious, high-end accommodation with high-quality amenities and robust security measures.

The high cost of accommodation in Angola is due to a notable gulf between supply and demand. The limited supply of housing is a result of the country's history of civil war, which ended in 2002, and the subsequent slow pace of construction. The civil war resulted in the destruction of much of Angola's infrastructure, and while the country experienced rapid economic growth post-war, driven by its oil industry, the construction of quality housing has been a longer-term development.

The demand for housing in Angola, especially in Luanda, comes primarily from expats working for large oil corporations. These companies often provide accommodation for their expatriate employees, recognising the high rental rates and the challenge of securing housing independently. The demand for housing by expats is further fuelled by the generous wages and benefits offered by these companies, which enable their employees to afford high-end accommodations.

The high cost of accommodation in Angola is, therefore, a result of the limited supply of quality housing, driven by the country's history of civil war and slow construction, coupled with the high demand from expats working in the oil industry, who are often provided with luxurious accommodations by their employers.

The cost of transport can vary considerably

The Cost of Transport in Angola

The cost of transport in Angola varies depending on the mode of transport, distance travelled, and your location. Here is a breakdown of the costs associated with different modes of transportation:

Public Transport

Public transportation in Angola is generally affordable, with a one-way ticket costing around 0.35 USD (0.35-0.84 USD) or 0.32 EUR (0.32-0.76 EUR). However, the system has its challenges, including overcrowding and irregular service, which can make it unreliable. The monthly pass for regular users is approximately 0.36 USD (0.27-0.39 USD) or 0.33 EUR.

Taxis

Using taxis or hiring a personal driver is a more comfortable but more expensive option. Taxi fares in Angola depend on several factors, with the starting price at about 1.70 USD. Additionally, you can expect to pay around 1.70 USD per kilometre travelled.

Private Vehicles

Purchasing a private vehicle can be costly in Angola. A car can easily cost twice as much as it would in the United States. On top of the high vehicle cost, you must also consider the added expenses of fuel and maintenance. The poor road conditions across the country contribute to higher fuel consumption and vehicle maintenance requirements.

Alternative Options

For those living in Luanda Sul, south of the capital, getting around in a private vehicle is easier due to less congested traffic compared to the city centre. However, the city centre experiences extreme congestion due to the high volume of vehicles.

Another alternative is to use a ride-hailing service like Kubinga, which operates similarly to Uber, which is not available in Angola.

In summary, the cost of transport in Angola varies significantly depending on your chosen mode of transportation and the specific circumstances of your journey. Public transport is the most affordable option, while private vehicles and taxis can be more expensive, especially when factoring in fuel and maintenance costs for personal cars.

The cost of healthcare can escalate quickly

The Cost of Living in Angola

According to a 2024 report, Angola is the 99th most expensive country out of 197 to live in. The average monthly living cost is $878, which is 1.19 times less expensive than the world average. The average salary after taxes is $2804, which is enough to cover living expenses for 3.2 months.

Luanda, the capital of Angola, was once the most expensive city in the world. However, it has dropped to 158th place out of 226 cities in the 2024 Mercer Cost of Living City Ranking.

The Cost of Healthcare in Angola

Healthcare in Angola is an area where costs can escalate quickly. The country has a dual-sector healthcare system, with public and private services available. While treatment at state hospitals and clinics is free, the public healthcare system is often under-resourced and understaffed, with low standards of care. As a result, many locals and expats opt for private healthcare, which can be extremely costly.

Public Healthcare in Angola

The public healthcare system in Angola is free of charge and serves almost 60% of the population. However, it is severely underfunded, understaffed, and difficult to access. The quality of care is generally perceived as poor, and the system suffers from outdated medical technology and infrastructure.

Private Healthcare in Angola

Expats and locals who can afford it usually opt for private healthcare in Angola. Private medical facilities typically charge high fees for their services, and comprehensive health insurance is essential for expats, adding significantly to monthly expenses. Private health insurance often includes coverage for emergency evacuation to better healthcare facilities in neighbouring countries like South Africa.

Health Insurance and Employer Coverage

It is recommended that expats secure a health allowance or comprehensive health insurance coverage from their employer as part of their relocation package. Employers typically provide expats with international health insurance, which can cover the high costs of private healthcare in Angola.

Medication and Pharmacies

Pharmacies in Angola, called "farmácias", are mostly found in Luanda and are often understocked. It is advised that expats bring a supply of any chronic medication they may need during their stay, along with proof of prescription for inspection. Due to medication shortages, hospitals cannot always provide prescribed medication, and patients may need to purchase it privately.

Frequently asked questions