Living costs in South Africa are continuously on the rise, but is the grass greener abroad? We investigate to determine whether living expenses in the United Kingdom (UK), the United States (USA), Germany and the Netherlands is less expensive than here in South Africa.

One should remember that, apart from living costs, purchasing power, average salaries and the quality of live must also be considered.  

With climbing fuel costs and almost unaffordable food prices, a myriad of South Africans crave the greener pastures abroad. Is it in fact worth the trouble to find your salvation elsewhere? Let’s compare the cost of living in South Africa with that of these four countries to determine whether a move makes any sense from this point of view.  

For a family of four, the average cost of living in South Africa is about R31 934 (excluding rent). A single person will most probably pay about R9 183 (rental also excluded).^[1] On average, the cost of living in South Africa is about 50% compared to the USA; rent is about 70% lower.[2] We dig a little deeper to get to the bottom of it all.

Does your food cost you an arm and a leg?

These days an outing to the shops can cost you very easily an arm and a leg, but is this the case everywhere? While prices in South Africa may climb a little too quickly if you ask its citizens, you may wonder of people abroad suffer the same fate. Below we set out the differences in food process to show how South African food prices compare to those of the other four countries.[3]

Table 1: Comparison between food prices in South Africa and other countries

	Average price in ZAR
	South Africa	UK	USA	Germany	Netherlands
1 ℓ milk	16,28	19,35	13,37	15,72	17,31
White bread	14,28	20,49	42,72	24,18	33,99
12 eggs	30,06	40,59	35,51	41,83	32,64
1 kg apples	23,49	38,43	70,17	41,78	42,74
1 kg potatoes	18,59	22,56	39,75	23,43	19,59
1 kg chicken fillets	72,76	113,03	143,50	121,95	135,86
1 kg steak	111,92	170,93	199,12	184,48	410,49
1 kg onions	17,53	20,35	39,46	22,56	17,35
Lettuce	16,15	14,78	25,58	17,82	12,88
Total cost	321,06	460,51	609,18	493,75	722,85

Shopping in South Africa may be expensive, but it is less expensive than abroad.

What does healthcare cost aboard?

In South Africa, basic medical costs are determined based on the patient’s income and number of dependants. The con of the public healthcare system is that it is often inadequate in dealing with the large number of people, which means people have to stand in long queues at public hospitals. For this reason, South Africans who can afford it, decide on private healthcare. A basic hospital care plan for three people starts at about R5 700.[4]^{, [5]}

In the UK the National Health Service offers all citizens access to free healthcare, which is funded through tax money. However, the UK’s health services are notorious for its long waiting periods, which may be to the detriment of people with serious health problems.[6]^{, [7]} The USA have no universal healthcare, which means that the government only pays part of its citizens’ medical costs; for the rest, people are dependent on private medical funds.[8]

Although all Germans have access to basic healthcare, it is a requirement for them also belong to a medical fund.[9] A similar systems as in Germany dictates that Dutch citizens must also belong to a medical fund, which may cost between €100 and €120 per person per month.[10]

The children must go to school: What now?

It is easier to bend the twig through quality education. Although South Africa has a number of quality public schools, it makes better sense to compare South African private schools to their piers abroad.[11]

Table 2: Private school education costs in South Africa and in other countries

	Average cost in ZAR
	South Africa	UK	USA	Germany	Netherlands
Preschool costs (per child per month)	3 269,93	19 773,40	14 480,75	5 716,31	25 830,33
Primary school costs (per child per year)	74 360,59	273 644,47	240 643,20	212 380,09	124 579,17

From this we can see that education in South Africa is much more affordable than abroad. This is all good and well to have your children educated, but what a place to live in?

Renting is expensive!

It is significantly less expensive in South Africa to rent than abroad. According to Intergate Immigration the average rent costs in the four countries under review is much higher than in our country.[12]

Table 3: Difference in average rent compared to South Africa

	Variance
UK	90,45% higher
USA	151,73% higher
Germany	65,10% higher
The Netherlands	114,81% higher

Although almost unbelievable, it is true that rental expenses in South Africa are much lower as those in the four other countries.[13]

Table 4: Average rental expenses in South Africa compared to other countries

	Average cost in ZAR
	South Africa	UK	USA	Germany	Netherlands
One-bedroom flat in the city centre	6 872,13	15 840,59	20 875,89	12 873,01	18 818,48
One-bedroom flat outside the city	5 971,67	13 068,18	16 952,54	9 657,63	14 785,97

Except for a roof over your head, you should also consider fuel expenses.

Petrol prices in South Africa vs abroad

There is normal headache, and then there is a headache that is the result of increasing fuel costs. All South Africans know this pain! But believe it or not: Currently, the petrol price in the world is so high that is not only South Africans who suffer. Look at the average petrol price per litre for fuel for 22 October 2022:[14]

Table 5: Petrol price in South Africa and in other countries

	Average petrol price per litre in ZAR
South Africa	22,49
UK	34,08
USA	20,01
Germany	35,41
The Netherlands	35,95

The state of things in South Africa is therefore: Live is expensive, yes; but still relatively less expensive than in other countries.

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[1]      Numbeo. 2022. Cost of living in South Africa. Available at https://www.numbeo.com/cost-of-living/country_result.jsp?country=South+Africa. Accessed on 8 November 2022.

[2]      Numbeo, 2022. Cost of living comparison between United States and South Africa. Available at https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+States&country2=South+Africa. Accessed on 8 November 2022.

[3]     Intergate immigration, 2022. The cost of living in South Africa: How does it compare? (2022). Available at https://www.intergate-immigration.com/blog/cost-of-living-in-south-africa-ultimate-guide/. Accessed on 27 October 2022

[4]     Buswell, G. 2022. The healthcare system in South Africa. Expatica, 3 October. Available at https://www.expatica.com/za/healthcare/healthcare-basics/healthcare-in-south-africa-105896/#Overview. Accessed on 27 October 2022.

[5]     Allianz Care, Healthcare in South Africa. Available at https://www.allianzcare.com/en/support/health-and-wellness/national-healthcare-systems/healthcare-in-south-africa.html. Accessed on 27 October 2022.

[6]     Thorlby, R. 2020. International Health Care System Profiles England. The Commonwealth Fund, 5 June. Available at https://www.commonwealthfund.org/international-health-policy-center/countries/england. Accessed on 27 October 2022.

[7]     Suphanida, 2020. An overview of the United Kingdom healthcare system. Pacific Prime UK, 11 June. Available at https://www.pacificprime.co.uk/blog/an-overview-of-the-united-kingdom-healthcaresystem/#:~:text=The%20NHS%20is%20notorious%20for,A%26E%20are%20also%20routinely%20missed. Accessed on 27 October 2022.

[8]     Tikkanen, R., Osborn, R., Mossialos, E., Djordjevic, A., & Wharton, G.A. 2020. International health care system profile: United State. Available at https://www.commonwealthfund.org/international-health-policy-center/countries/united-states. Accessed on 27 October 2022.

[9]     InterNations, Health insurance and healthcare in Germany explained. Available at https://www.internations.org/germany-expats/guide/healthcare. Accessed on 27 October 2022.

[10]   Peratello, G. 2022. Healthcare in the Netherlands: full guide (2022). Wise, 22 February. Available at https://wise.com/us/blog/healthcare-system-in-the-netherlands. Accessed on 27 October 2022.

[11]   Intergate immigration, 2022. The cost of living in South Africa: How does it compare? (2022). Available at https://www.intergate-immigration.com/blog/cost-of-living-in-south-africa-ultimate-guide/. Accessed on 27 October 2022

[12]   Idem.

[13]   Idem.

[14]   Global PetrolPrices.com, 2022. Gasoline prices, litre, 24-Oct-2022. Available at https://www.globalpetrolprices.com/gasoline_prices/. Accessed on 24 October 2022.