Mercer’s has released its 23rd annual Cost of Living Survey 2017, with African, Asian, and European cities dominating the list of most expensive locations for working abroad.
Out of over 400 cities surveyed, Kampala (Uganda) ranks 186 from 187 in 2016 among the most expensive cities in the world. This implies that it is the most affordable city in the East Africa Community (EAC) considering the fact that Nairobi (Kenya) ranks 111 from 116 in 2016, while Kigali, Rwanda ranks 147 from 139 in 2016.
Dar es Salaam (Tanzania) ranks 164 from 174 in 2016.
According to Mercer’s report, factors like instability of housing markets and inflation for goods and services contribute to the overall cost of doing business in today’s global environment.
“Globalization of the marketplace is well documented with many companies operating in multiple locations around the world and promoting international assignments to enhance the experience of future managers,” said Ilya Bonic, Senior Partner and President of Mercer’s Career business in a statement dated June21, 2017.
“There are numerous personal and organizational advantages for sending employees overseas, whether for long- or short-term assignments, including career development by obtaining global experience, the creation and transfer of skills, and the re-allocation of resources.”
Mercer’s 2017 Cost of Living Survey finds Asian and European cities – particularly Hong Kong (2), Tokyo (3), Zurich (4), and Singapore (5) – top the list of most expensive cities for expatriates.
The costliest city, driven by cost of goods and security, is Luanda (1), the capital of Angola.
Other cities appearing in the top 10 of Mercer’s costliest cities for expatriates are Seoul (6), Geneva (7), Shanghai (8), New York City (9), and Bern (10). The world’s least expensive cities for expatriates, according to Mercer’s survey, are Tunis (209), Bishkek (208), and Skopje (206).
Mercer’s authoritative survey is one of the world’s most comprehensive, and is designed to help multinational companies and governments determine compensation allowances for their expatriate employees.
New York is used as the base city and all cities are compared against it. Currency movements are measured against the US dollar.
The survey includes over 400 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.
“While historically mobility, talent management, and rewards have been managed independently of one another, organizations are now using a more holistic approach to enhance their mobility strategies. Compensation is important to be competitive and must be determined appropriately based on the cost of living, currency, and location,” said Mr. Bonic.
View the African Cities Ranking here; http://APO.af/pCXLBW). You can also view the Top 15 Cities Ranking here: http://APO.af/hrS2vG)
