The world's most expensive cities, Djibouti on number 44.

[Mukulaalow]

http://www.mercer.com/costoflivingpr#City_rankings

[Abu-Salman]

This is another cliche with irrelevant statistics to some extent, unless you care about daily French yoghurts and fruits ferried by plane or want 24/7 ACs (luxury imports rather than living like middle-class locals).

Bread and cereals are state subsidised and cost pennies, restaurants usually as cheap (around 1 euro for a full, large meal) etc.

Electricity is down 30% and telecoms by almost 100% since April, all that is left is more of better insulated/cheaper housing (some ongoing construction).

Transport needs are minimal and buses fares capped anyway.

With the Ethio hydroelectricity just starting and other schemes, prices are bound to go down even further.

So from $4oo/month, without rent, should be enough for an average family.

 

 

PS: One of the younger cousins confirms me they rent their Prado $150 a day most of the year to those wasteful NGOs, tourists or expats, while getting free fuel vouchers (for Education civil servants etc); seems that mere teachers with big families could live comfortably there over time if not addicted to khat or wasteful (returnees and younger ones are impatient). No real income tax, no parking fees or fines etc.

[Alpha Blondy]

djibouti is very expensive. the local ppl are very poor.

[Abu-Salman]

Things are artificially expensive, in contrast to say Ethiopia, due to foreigners causing inflation but if you live like locals and avoid big stores for expats, life is not much more expensive than in Hargeysa (with much more customer choice, top telecom services in Africa etc if that matters).

 

The Mercer report factor in heavily the cost of secluded compound villas rent for expats that cost $3000/month, one of the ways in which locals milk them (a relative rent two of them to Dubai port exec etc and others are entering this renting niche).

 

The real difference with Hargeysa now that utilities are totally transformed is the rent and some AC expense if staying over the summer (many go to Yemen, Dire-Dawa, Borama etc), but then again there are rent/buy and social schemes not available there, while salaries are much higher ($1000 for starting teachers, $400 for French tutors etc).

 

 

PS: the inequalities (the 40-60% that may struggle) are not yet the priority and a formal safety net would act as a regional magnet but cereals, bread, fares etc are subsidised or capped while public services are free and taxes, transport or hidden costs almost inexistent.

Upgrading health services, social housing, social tariffs are the typical answers but the real struggle for the authorities are Qat and labor intensive industries that would spread the growth.

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