But just how much cheaper is it?
That’s the question we’re looking to answer today. We’ll do this by comparing South Africa’s cost of living to four other nations – the UK, the USA, Germany, and the Netherlands.
How does the comparison work?
We’ll give you a realistic idea of how South Africa’s cost of living compares to the countries on our list by looking at seven standard living costs:
We’ve pulled all the costs from Numbeo, the “world’s largest cost of living database”. The costs are crowdsourced, so keep in mind that costs are averages.
Let’s dive into the comparison
On average, consumer prices in South Africa are lower than in the UK, USA, Germany, and the Netherlands.
The most significant difference is between South Africa and the Netherlands. South Africa’s consumer prices are 43.13% lower.
Rent in South Africa is significantly more affordable than in the comparison countries. According to Numbeo, on average:
- Rent in the UK is 90.45% higher than in South Africa.
- Rent in the USA is 151.73% higher than in South Africa.
- Rent in Germany is 65.10% higher than in South Africa.
- Rent in the Netherlands is 114.81% higher than in South Africa.
Let’s break it down by looking at the rental prices of 1-bedroom and 3-bedroom apartments both in the city and in the suburbs:
|Apartment (1 bedroom) in City Centre||6,872.13||15,840.59||20,875.89||12,873.01||18,818.48|
|Apartment (1 bedroom) Outside of Centre||5,971.67||13,068.18||16,952.54||9,657.63||14,785.97|
|Apartment (3 bedrooms) in City Centre||14,690.99||25,890.57||34,274.51||24,400.56||28,992.54|
|Apartment (3 bedrooms) Outside of Centre||12,022.99||20,709.75||27,725.42||18,437.32||22,578.61|
Also read our article on everything you need to know about renting and buying property in South Africa.
Whether you rent or own, you’ll have to include utilities like water, electricity and internet in your budget.
|Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment||1,729.17||3,254.94||2,589.19||3,983.15||2,884.09|
|Internet (60 Mbps or More, Unlimited Data, Cable/ADSL)||878.05||643.69||1,026.05||579.56||705.03|
As you can see from the information above, South Africa’s internet costs are high. South Africans can tell you that our mobile data costs are high too. It’s not cheap staying connected in SA, unfortunately.
Please note: Fuel prices change often. You can get the latest price on the AA’s website.
Let’s start by looking at the average cost of a basket of groceries in SA and our comparison countries:
As you can see, South Africa is the most affordable place to shop for your family. Now let’s look at the prices of the individual items we put in our basket:
|Loaf of Fresh White Bread||14.28||20.49||42.72||24.18||33.99|
|1kg White Rice||22.37||23.27||60.84||33.60||34.07|
|1kg Local Cheese||111.77||116.85||170.85||172.67||194.25|
|1kg Chicken Fillets||72.76||113.03||143.50||121.95||135.86|
|1kg Beef Round||111.92||170.93||199.12||184.48||410.49|
Parents immigrating from the UK, USA or the Netherlands will spend significantly less on preschool fees. While not as much, German parents will also spend less on preschools in SA – roughly 40% each month.
|Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child||3,269.93||19,773.40||14,480.75||5,716.31||25,830.33|
|International Primary School, Yearly for 1 Child||74,360.59||273,644.47||240,643.20||212,380.09||124,579.17|
The picture looks similar for primary school, although German parents don’t save as much in this instance. German families will save more than families from the Netherlands, though.
While these costs are for international schools, you’ll also pay to send your children to public schools in South Africa. Public schools are much more affordable than private schools, though.
When filling up your closet in South Africa, you’ll spend more or less the same as in the UK, USA, Germany, and the Netherlands.
Not a fan of chain stores? You’ll find many fantastic locally-made options, but you can expect to pay more for these brands.
|1 Pair of Jeans (Levis 501 Or Similar)||753.07||1,229.34||678.74||1,345.62||1,428.09|
|1 Summer Dress in a Chain Store (Zara, H&M, Etc)||506.69||611.26||545.72||626.47||626.97|
|1 Pair of Nike Running Shoes (Mid-Range)||1,348.59||1,303.58||1,182.62||1,397.37||1,516.65|
|1 Pair of Men Leather Business Shoes||1,270.38||1,288.61||1,498.44||1,884.45||1,964.71|
It’s common in South Africa to own a car. While taxis and e-hailing operators like Uber are common, our public transport system is not nearly as refined as in Europe or the UK.
You’ll see from the table below that cars in South Africa are competitively priced against vehicles in the UK, USA, Germany, and the Netherlands.
|Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car)||300,000.00||419,231.26||359,824.84||408,724.92||436,205.89|
|Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car)||342,906.93||437,245.84||338,467.94||403,631.15||450,061.32|
|Petrol (1 liter)||18.22||29.62||11.15||26.78||31.86|
Most South Africans finance their cars, and many South Africans opt for used vehicles as they’re more affordable. Prepare for car repayments to make up a significant portion of your monthly salary!
South Africa is well known for its food and wine. Our restaurants are world-class, and our wines often win awards. Our craft beer scene has also exploded over the past couple of years!
The cherry on top? You get to wine and dine at fantastic prices, too.
|Lunch at Inexpensive Restaurant||150.00||272.50||230.66||174.48||261.72|
|3-Course Dinner for Two at a Mid-Range Restaurant||600.00||1,048.08||922.63||872.41||1,046.89|
|500ml Domestic Beer||30.00||79.65||76.89||62.81||78.52|
|330ml Imported Beer||40.00||83.85||92.26||61.07||69.79|
|330ml Coke or Pepsi||14.80||28.49||29.96||41.80||44.22|
But what about purchasing power?
You can’t make a cost-of-living comparison without looking at purchasing power.
Purchasing power is important because, all else being equal, inflation decreases the number of goods or services you would be able to purchase.
According to Investopedia, purchasing power is “the value of a currency expressed in terms of the number of goods or services that one unit of money can buy.”
In other words, purchasing power is “the financial ability to buy products and services”.
On average, South Africa’s local purchasing power is:
- 12.12% lower than in the UK
- 26.33% than in the USA
- 23.82% lower than in Germany
- 11.29% lower than in the Netherlands
Expert tip – Find out how much you could earn in South Africa to see if you can afford the lifestyle
Knowing how much you’ll earn is a big part of deciding whether or not you can afford South Africa’s cost of living.
Someone earning R50,000 a month can live more comfortably than someone making R25,000 a month.
To get an idea of how much you can earn, go to PayScale. You’ll get averages for a wide range of industries.
It’s also advisable to speak with a recruiter. Recruiters can give you salary expectations based on your skills and experience.
South Africa’s rent, groceries, schooling, and restaurant prices are the most affordable compared to the UK, the USA, Germany and the Netherlands.
However, South Africa’s internet costs are high. It’s only Americans that spend more on staying connected. Buying clothing or a car in South Africa also isn’t much cheaper than in the other four countries.
These higher costs might not make a difference if you’re only visiting or earning in foreign currency, but if you’re earning rands, it most likely will. South Africa’s purchasing power is the lowest of all the countries. That’s why it’s essential to look at how much you could earn in South Africa to understand the impact of South African prices on your pocket.