Luanda Angola’s capital is world’s most expensive city

Part of Luanda city

Luanda Angola’s capital has for the second time in three years been proclaimed the most expensive city world over for expats according to Mercer a renown human resources consulting firm. Luanda takes the lead from Tokyo which topped all cities last year.

The high cost of leaving in the South African country is attributed to Hotels which are said to be the visitor's biggest expense. Despite the booming construction in the city coupled with an increasing number of hotel construction, prices have generally remained high. For instance at about $500 one can spend a night for a five-star hotel, $370 for an average four-star and $325 for a medium level guesthouse. A meal in a good restaurant may go for $100 per person.

The exorbitantly high cost of leaving is however, not commensurate with peoples’ incomes. There is a colossal disparity between income levels. For instance, were as a mid-level expat professional might earn $ between $8,000-10,000 a month, a low income earning housemaid parts home with $300-500. In fact majority of the citizens cannot afford such services and basically stay in the suburbs of Luanda.  Angola relies mainly on the oil sectors with little domestic production. The former war ravaged country, had its economy crippled by the 27 year insurgency. The population was significantly annihilated during the rebellion leading to low domestic production. As a result most of the commodities used are imported from outside and the government heavily taxes them making survival very expensive.

There are however, a few affluent isolated populations in and around Luanda who can afford Escalades and Range Rovers. However, going by the number of people who can afford such expensive services, one would wonder where the demand for such expensive services comes from.