BIG STORY

Top 5 African countries with the lowest purchasing power mid-2024

Posted on

September 13, 2024

Many African countries are becoming major competitors in the global marketplace owing to their youthful, rapidly expanding populations and growing middle classes. Any country’s purchasing power is a crucial indicator of its economic health and future prospects. A high purchasing power indicator denotes stability in the economy, while a low one typically signals an economic crisis.

When individuals have the financial resources to buy products and services, companies thrive and industries grow. This, in turn, increases GDP and helps the country’s economy expand.

The increase in consumer spending benefits local companies, provides jobs, and fosters entrepreneurship.

Furthermore, countries in Africa with great purchasing power allow for a robust domestic market that supports the growth of regional players. This lessens reliance on exports and increases the economy’s ability to withstand changes in the world economy, as well as service its own market.

In countries with higher purchasing power, individuals have greater access to basic needs such as food, healthcare, education, and housing, and as suggested, countries with a lower purchasing power do not properly enjoy some of these amenities.

Unfortunately, some African countries boast purchasing powers that do very little to address their challenges. Their low purchasing power affects the quality of life for the people in these nations as well as the industries and economic growth.

With that said, here are the 5 African countries with the lowest purchasing power according to Numbeo.