Luanda, Angola – the world’s second most expensive for expatriates

The main promenade in the capital of Luanda in Angola. PHOTO/Alamy

This year Luanda, the capital of Africa’s second largest oil producer Angola, has been named the second most expensive city to live in across the globe. Angola has become the third-largest economy in Africa after South African and Nigeria owing to an ‘oil boom’. Crude oil sales account for over 95 percent of its export revenue, and the government expects GDP growth of 12.8 percent in 2012.

The study, conducted by Mercer Consulting analysed more than 200 cities across the globe. New York City was set as the benchmark. Mercer’s annual survey, which looks into the cost of living, is used by multinational companies to determine compensation for expatriate employees around the world. The results are based on more than 200 individual factors including housing, transportation, food, clothing and entertainment.

According to the report, the most costly expense in Luanda is renting property. Despite the average monthly cost of renting a luxury two-bedroom apartment falling by US$500 compared to last year, it still remains incredibly high at US$6,500.

Angola ranks as one of the largest recipients of foreign direct investment in Africa with inflows of nearly US$10 billion in 2010. Its main overseas investors include China, Portugal, Brazil and the U.S.

The breakdown:

Monthly rent, luxury two bedroom apartment: US$6,500

Cup of coffee: US$3.90

One gallon of gasoline: US$2.38