The Ultimate Price Of Buying A Country: Angola

Angola is a country in Middle Africa with a population of 13,068,161 and a land area of 1,246,700 square kilometres. The country has a gross domestic product (GDP) of $124 billion and a cost of living that is 1.19 times less expensive than the world average. The average monthly cost for a single person without rent is 726.0€ (807.3$) and the average salary after tax is $2804. The capital, Luanda, was previously ranked as the most expensive city in the world to rent a two-bedroom apartment, with an average cost of $6,800 per month.

Cost of living in Angola

The cost of living in Angola varies depending on location and lifestyle choices. Here is a breakdown of the cost of living for different family compositions, excluding rent:

Family of Four:

Monthly costs are estimated to be around 1,765,037 Kz (Kwanza), or approximately 2,541.7€ (2,826.1$).

Single Person:

Monthly costs are estimated to be around 746,779 Kz, or approximately 726.0€ (807.3$).

Utilities:

Monthly utility costs for an 85m2 apartment, including electricity, heating, cooling, water, and garbage disposal, are expected to be high due to the country's reliance on imported fuel and electricity.

Transportation:

• Angola offers various transportation options, including buses, taxis, car rentals, bush-taxis, domestic flights, and trains.
• Local transport tickets and monthly passes are available, with taxis being unmetered and requiring negotiation for fares.

Food:

• Angola offers a range of dining options, from local street food to high-end restaurants serving international cuisines.
• A meal for one person at an inexpensive restaurant is estimated to cost around 500 Kz to 2,400 Kz.
• A meal at McDonald's or a similar fast-food restaurant is estimated to cost around 2,400 Kz.
• A bottle of mid-range wine is estimated to cost 5,000 Kz.

Housing:

• The cost of renting or buying an apartment in Angola varies depending on location and size.
• Renting a one-bedroom apartment in the city centre or outside of it can range from 20,000 Kz to 60,000 Kz per month.
• The price per square meter to buy an apartment in the city centre is estimated to be around 125,000 Kz, while outside the city centre, it is around 80,000 Kz.

Other Expenses:

• Leisure activities include sports clubs, tennis court rentals, cinemas, and international schools, with varying costs.
• Clothing and shoes can be purchased from high-end designer brands to more affordable options in street markets.
• Healthcare costs, such as doctor's visits and medication, should also be considered.
• Childcare expenses, such as private preschool or kindergarten, can be quite expensive due to high operating costs and limited competition.

It is important to note that market prices in Angola can be high compared to other countries in the region due to limited local production, high transportation costs, and a reliance on imports. The cost of living in Angola's capital, Luanda, has previously been ranked as the most expensive in the world for expats, mainly due to the high demand for luxurious housing among expats and a limited supply.

Cost of living in Luanda

Luanda, the capital of Angola, has been ranked as one of the most expensive cities in the world for expatriates, even outranking cities like Hong Kong, Zurich, and Singapore. This is mainly due to the high cost of housing, which can be attributed to limited supply and high demand. The cost of renting a two-bedroom apartment in Luanda can reach up to $6,800 per month, and a house can be as expensive as $10,000 per month. The high cost of living in Luanda is surprising given that Angola's GDP per capita is only $7,700 per year, and an estimated half of Angolans live on less than $2 a day.

The high cost of living in Luanda is mainly driven by the city's status as an emerging market and its recent history of civil war. From 1975 to 2002, Angola was embroiled in a civil war that destroyed much of its infrastructure and local production capabilities. This limited supply dynamic, coupled with high demand from expatriates working in the booming oil industry, has led to inflated prices, especially in the housing market.

In addition to housing, other costs in Luanda can be quite high. A basic meal for two at a restaurant can cost $50 or more, and a hotel room can cost up to $400 per night. Transportation costs are also high, with car rentals ranging from $90 to $200 per day, depending on the vehicle type. Even groceries can be expensive, with items like meat and vegetables costing significantly more than in other countries.

However, there are some signs that property prices in Luanda may have peaked and could be on a downward trend. Increased construction has led to a larger supply of accommodation, causing prices to drop. Additionally, the Angolan government has implemented economic reforms to address high market prices, including efforts to increase local production and reduce import taxes on certain goods.

Despite these challenges, Luanda offers a diverse range of dining options, from local street food stands to high-end restaurants serving international cuisine. The city also boasts beautiful landscapes and a rich cultural heritage, making it an appealing destination for adventurous travellers.

Cost of living for expats vs locals

Cost of Living in Angola for Expats vs Locals

The cost of living in Angola varies significantly between expats and locals. While Luanda, the capital, was once the most expensive city in the world, it now ranks as the 158th most expensive city out of 226 cities surveyed in the 2024 Mercer Cost of Living City Index. This change is due to the country's post-civil war economic growth, which has seen an increase in the supply of quality housing and a subsequent decrease in housing costs. However, the cost of living in Angola is still relatively high, and there is a notable gulf between the expenses incurred by expats and locals.

Expats

Expats living in Angola can expect to pay higher prices for certain goods and services compared to locals. The cost of accommodation, for instance, is particularly high due to the limited supply of secure housing. Renting a two-bedroom apartment in Luanda can cost up to $6,800 per month, and expats often have to pay for accommodation themselves unless their employer subsidises these costs.

Transportation costs can also be significant for expats, who may opt for private taxis or hire a personal driver due to the issues with public transportation, such as overcrowding and irregular service. Additionally, expats accustomed to Western-brand products may find grocery shopping expensive due to import taxes and logistical challenges.

Healthcare is another area where expenses can quickly escalate. While there is a public healthcare system in Angola, it is often under-resourced and understaffed, leading many expats to seek private healthcare, which can be costly. Comprehensive health insurance is essential for expats, adding further to their monthly expenses.

Locals

For locals, the cost of living in Angola is significantly lower than for expats, with the average salary after taxes being $2,804, which is enough to cover living expenses for 3.2 months. However, it is important to note that around half of Angolans live on less than $2 a day, indicating a significant wealth disparity within the country.

The cost of food and transportation for locals is generally lower than for expats, as they may rely more on local markets for fresh produce and utilise public transportation, which is affordable despite its shortcomings.

However, the cost of education and healthcare for locals can still be challenging. The standard of local public and private schools is often considered inadequate, leaving expensive international schools as the only option for those who can afford it. Similarly, the public healthcare system's shortcomings drive many locals to seek private healthcare, which can be costly and further stretch their finances.

Angola's economic inequality

Angola has a fast-growing economy, with a growth rate of 5.1% in 2013, projected to reach 7.9% in 2014 and 8.8% in 2015. However, Angola also has high economic inequality, with 36% of Angolans living below the poverty line and a 26% unemployment rate. The country is heavily dependent on oil revenue, with oil production contributing about 45% of its GDP and 80% of government revenues. This has led to limited investment and job opportunities and increased inequality. Angola's mineral product exports, including diamonds, make up more than 95% of total exports. The diamond industry, which generates over $650 million annually, has also been associated with human rights abuses and environmental degradation.

The service sector in Angola also exhibits economic inequality. While there are high-end and international dining options, as well as luxurious housing options for expatriates, the cost of living for locals remains high, with market prices for basic goods and services being relatively expensive compared to other countries in the region. This is partly due to limited local production, high transportation costs, and a reliance on imports. The government has attempted to address these issues by increasing local production and reducing import taxes, but these measures have been criticised for causing market distortions and shortages.

Angola's capital, Luanda, has been ranked as the most expensive city in the world for expatriates, with extremely high rent prices. This is partly due to the limited supply of high-quality housing following the country's civil war and the recent economic boom driven by the oil industry. The demand for luxurious housing among expatriates has contributed to the high cost of living in Luanda, which may not reflect the reality for the local population.

Angola's tourism industry

The tourism industry in Angola is relatively new, as the country was ravaged by a post-colonial civil war that ended in 2002. Since then, the country has been peaceful and is now one of the emerging countries in Africa, attracting both businesses and tourists. Angola is located in a subtropical zone and has three distinct climates: tropical and hot in the coast and north, temperate-tropical in the highlands of the center and south, and dry and hot in the southeast. The average mean temperature is around 23º Celsius. The best time to visit is between May and October, with the coolest months being from May to July.

There are several national parks in Angola that attract tourists, such as Cameia National Park, Cangandala National Park, Iona National Park, Mupa National Park, and Bicuar National Park. These parks are known for their unique flora and fauna, including species that are only found in Angola, such as the black palanca antelope. Other popular destinations include the beaches along the Atlantic coastline, such as Ilha do Cabo, Mussulo, and Palmeirinhas in Luanda, and Morena and Restinga in Benguela.

Angola offers a range of transportation options for tourists, including buses, taxis, car rentals, bush-taxis, domestic flights, and trains. However, it is important to note that power outages, car accidents, poor road conditions, and general difficulties associated with a developing country can make traveling in Angola challenging.

The country has a wide variety of food options, from local street food to high-end restaurants serving traditional Angolan, Portuguese, African, and Brazilian cuisine. Popular dishes include Moamba de Galinha, a traditional Angolan chicken stew served with palm oil and vegetables, and Xinxim de Galinha, a savory chicken stew with peanut sauce. Seafood is also readily available, with fresh options like lobster, shrimp, and fish.

Frequently asked questions