South Africa is rich in many things: culture, diversity, wildlife, nature, history, and more. It’s this tremendous wealth that attracts tourists to visit or, in many cases, even relocate permanently (Is South Africa Good Place to live). 

But whether you’re planning a trip or moving into this beautiful country, one of the first things you’d need to consider is affordability.  

In this article, we’ll explore the factors that influence the cost of living and visiting South Africa, and provide insights to help you decide whether this country is an affordable destination for you.

Is South Africa cheap?

South Africa is a relatively affordable country to visit or live in compared to other countries and popular tourist destinations.

This is based on several factors, such as the cost of living, monetary exchange rates, accommodations and housing, transportation, and the cost of tourist-related activities.

Let’s take a closer look at each of these factors. Read on!

Cost of Living in South Africa

The overall cost of living in South Africa is lower compared to many other countries. As cited in a report by Numbeo in 2022, South Africa ranked 78th most expensive out of 139 countries listed.

For comparison, here are the cost of living scores of other countries included in the world’s most visited by tourists compared to that of South Africa. 

The table below shows each country’s cost of living index, cost of living plus rent index, and groceries index:

The country’s diverse agricultural sector plays a big part in the country’s affordable groceries. They produce various crops, livestock, and fruits and vegetables, leading to a continuous supply of local produce and meat, which keeps prices affordable. 

In addition, South Africa has low taxes on alcohol, which makes beer, wine, and spirits affordable. The World Health Organization reports that South Africa has the second-lowest tax on beer globally, after Namibia. 

However, it’s worth noting that the overall cost of living in South Africa can vary widely depending on multiple factors, including the location and lifestyle of an individual.

Here are some cities in South Africa where it’s generally considered cheaper living in, based on factors such as the cost of housing, transportation, and food:

Property Prices in South Africa

The good news about property prices in South Africa is, compared to many other developed countries, properties here are generally more affordable. Of course, this still depends on the location, type, and condition of the property.

To give you an idea, here’s a simple comparison between property prices inside and outside the city centre in South Africa and the United States:

We mentioned in the previous section the cities in South Africa where the cost of living is cheaper. Below you’ll find the average property prices for one and two-bedroom homes in the following South African cities:

Take note, though, that these are just estimates and these figures can easily change depending on various market factors.

Exchange Rates in South Africa

In comparison to other nations, South Africa’s exchange rates are often considered appealing, especially for tourists and work travellers coming from countries with stronger currencies like the US and the UK.

The South African rand (ZAR) to US dollar (USD) conversion rate as of April 2023 is roughly 14.29 ZAR to 1 USD while the ZAR to Euro (EUR) conversion rate is around 16.41 ZAR to 1 EUR.

Accommodation Costs in South Africa

South Africa has a wide range of economical lodging alternatives for travellers and expats, including budget hostels, serviced flats, and long-term rentals. Some examples are:

Transportation Costs in South Africa

Oh, you’re in luck! South Africa is one of the most affordable destinations when it comes to transportation costs. You won’t have to break the bank to get around this beautiful country. 

A one-way ticket on local public transportation in Cape Town and Johannesburg is so cheap, you’ll think it’s a typo.

And don’t even get me started on the taxis – taking a ride for 5 miles in Johannesburg will cost you a fraction of what you’d pay in New York City or London.

To paint you a picture, here’s a little comparison:

Fuel prices in South Africa are also relatively low compared to many other countries. Here’s how we fair compared to other countries:

All in all, South Africa’s transportation costs won’t leave you penniless, especially for those coming from countries with higher living costs. 

Of course, prices will depend on the location and type of transportation, but you can expect to get around South Africa relatively cheaply.

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