The amount workers take home must stretch across essentials such as food, housing, transport, utilities and other everyday expenses, with the cost of these goods and services varying significantly from one country to another.
A 2026 mid-year comparison by Numbeo examines this gap by measuring how much the average net salary can buy after accounting for local living costs.
Rather than ranking countries by the size of their economies or the salaries workers receive, the Local Purchasing Power Index seeks to show what those earnings can actually afford, using New York City as its benchmark.
South Africa leads the African countries in the comparison with a score of 105.5, followed by Botswana at 80 and Namibia at 69. Mauritius ranks fourth at 54.1, while Morocco, Libya, Algeria, Tunisia, Kenya and Seychelles complete the top 10.
Why richer economies do not always have stronger purchasing power
The contrast becomes clearer when the scores are compared with GDP per capita, which measures economic output per person rather than the income an average worker takes home.
The International Monetary Fund’s October 2026 estimates put Seychelles’ GDP per capita at about $19,160, the highest in Africa. Mauritius follows at approximately $13,670, while Botswana stands at $8,560 and South Africa at $7,660.
Yet Seychelles scores just 31.5 on the purchasing power index, compared with 105.5 for South Africa and 80 for Botswana.
The difference reflects the cost of living and how national income translates into wages. Seychelles’ relatively high income per person does not mean that its average worker earns enough to match the country’s economic standing. The cost of goods and services, housing and the distribution of income all influence how much a salary can buy.
The ranking also places Libya at 37.8 despite GDP per capita of about $7,560, while Kenya scores 33.4 against approximately $2,790. These comparisons show why GDP per capita alone cannot explain household living standards.
Source: africa.businessinsider.com
