10 African countries with the lowest purchasing power in 2025

Many African nations struggle with low purchasing power due to factors such as high poverty, weak industrialization, political instability, and limited global market access.

According to Numbeo’s Purchasing Power Index, this metric evaluates relative purchasing power based on average net salaries.

A score of 40 indicates that residents earn, on average, 60% less purchasing power than those in New York City, highlighting significant disparities in affordability and living standards.

African nations with low purchasing power often have weak economies, but this is not always absolute.

Purchasing power, reflecting citizens’ ability to afford goods, is closely linked to GDP, economic diversification, and income distribution.

Many nations, like Nigeria, Cameroon, and Ivory Coast, rely on raw material exports, but price volatility, limited job creation, and wealth inequality prevent widespread benefits.

Currency depreciation and inflation further weaken purchasing power, as seen in Nigeria’s declining naira and Ghana’s inflation crisis, making essentials more expensive.

Economic instability, worsened by high debt and fiscal mismanagement, reduces investor confidence, limiting long-term growth.

A key benefit of high purchasing power is poverty reduction and better quality of life. Higher wages relative to living costs allow citizens access to healthcare, education, housing, and nutrition, improving overall well-being.

According to Numbeo’s Purchasing Power Index, the table below highlights African nations with the lowest purchasing power in 2025;

The table highlights African nations with the lowest purchasing power as of January 2025, indicating that residents in these countries can afford fewer goods and services compared to global standards..

For instance, Cameroon (9.7) and Nigeria (10.6) experience significant inflation and currency instability, reducing the real value of earnings.

Similarly, Ivory Coast (13.3) and Ethiopia (13.3) face structural economic constraints, including reliance on primary commodities and limited industrialization.

Overall, low purchasing power limits economic growth by restricting domestic consumption, reducing savings, and discouraging investment, which in turn slows development and living standards.

If African nations achieve high purchasing power, their economies will grow, living standards will improve, and investment will increase. Greater affordability boosts domestic demand, driving economic expansion.