Cost of Living in South Africa
While its natural beauty has helped its rise to global prominence, residents also have to live with the ever increasing cost of living in South Africa.
Largely as a result of its weakness against the US Dollar and the Euro, consumers who live in South Africa often have to contend with price increases for petrol, electricity, food and other essential items.
Salaries don't stretch as far for expats who earn in the local currency. According to Mercer's Cost of Living report for 2015, the cost of living in Johannesburg (191) and Cape Town (200) is still far lower than major international destinations like New York, London and Tokyo.
Expats who earn or have savings in a stronger foreign currency are likely to find their financial situation is more flexible than it was back home. Those who can afford it are guaranteed a high quality of life in a country that is known for sunshine, fresh produce and good wine.
As is usually the case, the cost of living in South African cities is higher than in rural towns, and most expats either move to Cape Town or Johannesburg.
Cost of accommodation in South Africa
There's an abundance of accommodation options in South Africa, and it shouldn’t take long for expats to find a home that suits their budget and lifestyle.
Some peripheral suburbs in Cape Town and Johannesburg are an exception, but generally the further away from the city someone finds a home, the less expensive it will be. There are plenty of quieter areas for expats who'd prefer to live outside of city's hustle and bustle. But most expats buy a car and commuting between home, work and school can take hours.
Expats moving to Johannesburg will get more space for their money but a less spacious apartment or house in Cape Town may be within short distance of the beach, vineyards or the mountain.
Given the weakness of the Rand, buying a property in South Africa is an attractive proposition for many expats, especially in upmarket areas like Cape Town’s Atlantic Seaboard.
Cost of food in South Africa
Thanks to ever-increasing prices, groceries in South Africa will dominate a large chunk of an expat family’s budget alongside accommodation, transport and education.
Most families on a budget prefer to buy groceries from supermarkets that stock a wide variety of local produce and imported goods, like Pick ‘n Pay or Checkers. South African brands are usually cheaper than imported goods and many of them are good quality.
Expats with nostalgic taste buds will also be pleased to know that some retailers stock items from overseas, but at increased prices.
Cost of education in South Africa
There many excellent schools to choose from in South Africa, but there's a big difference between private and public school fees. Given that most expats send their children to private or international schools, the cost of education in South Africa is relatively high.
Cost of healthcare in South Africa
Most expats opt for the higher standards and better staff-to-patient ratios of private healthcare in South Africa.
Routine costs are generally affordable, even for people don't have health insurance. Fees quickly become expensive, however, when consulting specialists or heading to the emergency room.
Private care providers may ask for payment up front, which makes it a good idea to take out private health insurance in South Africa.
Cost of living in South Africa ChartPrices may vary depending on product and service provider. The list below shows average prices for March 2016.
|Furnished two bedroom house||ZAR 20,000|
|Unfurnished two bedroom house||ZAR 15,000|
|Furnished two bedroom apartment||ZAR 12,000-15,000|
|Unfurnished two bedroom apartment||ZAR 7,000-12,000|
|Eggs (dozen)||ZAR 23|
|Milk (1 litre)||ZAR 13|
|Rice (1kg)||ZAR 18|
|Loaf of white bread||ZAR 13|
|Chicken breasts (1kg)||ZAR 62|
|Pack of cigarettes (Marlboro)||ZAR 35|
|Big Mac Meal||ZAR 50|
|Coca-Cola (330ml)||ZAR 11|
|Bottle of local beer||ZAR 20|
|Three course meal for two at a mid-range restaurant||ZAR 300|
|Mobile to mobile call rate (per minute)||ZAR 1.80|
|Internet (Uncapped ADSL or cable – average per month)||ZAR 850|
|Basic utilities (per month for small household)||ZAR 1,100|
|Taxi rate (per kilometre)||ZAR 12|
|Bus/train fare in the city centre||ZAR 12|
|Petrol/Gasoline (per litre)||ZAR 13|