Ghana has made it to the list of the top 10 African countries with a lower cost of living, according to a report by Numbeo.
Despite the difficulties facing the West African country, from harsh economic conditions to relatively high inflation, amongst other indicators, the country ranked number seven on the list.
Ghana, however, ranked 135th on the global scale using the same benchmarks.
Due to its proximity to some of the most significant natural resources on Earth, Africa enjoys the advantage of financial resources.
These resources are then distributed to improve the quality of life for its people. Although this hasn’t always been the case, there are nations on the continent that are ideal examples.
Impact of low cost of living on the bigger economic picture
Low living costs draw foreign investment, which is one of their main advantages.
Businesses find it more cost-effective to launch operations when they can cut back on labour, resources, and general living costs.
Thus, economic growth and job creation are encouraged, and foreign direct investment (FDI) is raised as a result.
More on Ghana’s economy:
Additionally, a cheap cost of living helps local businesses by reducing obstacles to entry for a wide range of industries.
This provides an environment that is conducive to the success of small and medium-sized enterprises (SMEs).
People are more inclined to take chances, launch their enterprises, and add to the economy’s diversification when the cost of doing business declines.
In actuality, a cheap cost of living fosters a welcoming business environment in addition to the significant benefit of being in an area where the typical person can afford goods and services.
Methodology:
To collect data, Numbeo relies on user input and manually collected data from authoritative sources (websites of supermarkets, taxi company websites, governmental institutions, newspaper articles, other surveys, etc.). Manually collected data from established sources is entered twice per year.
