Friday, 20th May, 2022

Page 10
Accommodation is
one of mankind's
most essential needs.
However, it doesn't
come cheap. This
reality is most problematic in
Africa where millions of people
often resort to shanties/ghettos,
due to their inability to afford
decent living conditions.
In this article, we shall be
looking at the 9 most expensive
countries to rent a one-bedroom
apartment in Africa.
This is based on the property
Business
Ghana among 9 most
expensive African countries to
rent a one-bedroom apartment
Governor of the Bank
of Ghana, Dr. Ernest
Addison has revealed
that Ghana is seeking
to buy gold from local
sources to help raise the gold
component of the country’s gold
reserves.
According to him, this is
to strengthen the Ghana cedi
without causing an increase in
inflation.
“We have started a bulk
purchase program, domestic,
where we buy gold locally and
try to raise the gold component
in our level of reserves. This is
where the current focus is.”
Ghana’s inflation has
recorded an all-time high of
23.6% in April 2022, the highest
since 2004.
The Ghana Cedi also saw
increases from the beginning
of the year due to the Russia-
Ukraine conflict.
Governor of the Bank of
Ghana, Dr. Ernest Addison, has
noted that the country’s current
inflation comes as a surprise
to his team as food, transport,
and imports have pushed the
country’s inflation to 23.6%.
The Governor noted that the
monetary policy is in a huge fix
even as it begins meeting today,
May 18, 2022, to make decisions
price to income ratio, which
Investopedia defines as the ratio
between a median home price
compared to the median annual
household income within a
particular region.
While compiling the list, we
also considered the affordability
index, which basically measures
"an average person's ability to
purchase a particular item, such
as a house in a particular region,
or to afford the general cost of
living in the region."
Also note that the statistics
Ghana starts local gold
purchase to strengthen
currency - BoG
on the nearly 24% inflation rate
as well as the monetary policy
rate of 17%.
Speaking to Bloomberg, Dr.
Addison noted that even though
issues are complicated currently,
a major decision will be taken.
“It’s an issue which in a
sense is baffling to all of us. A
year ago, inflation in Ghana was
near single digit, particularly
we were at 7.5% and then we
find ourselves a year later in
high double digits. It’s a very
complicated environment, as
you yourself are aware we have
come out of COVID-19. But
Ghana, fortunately, was able to
weather the impact of COVD
well without recording highinterest
rates.”
“And it seems as if the
economy has picked up
significantly with a positive
growth rate of 5.4%. At
the Central Bank, we have
anticipated this. In November
last year, we raised the policy
rate by 100 basis points [2.0%],
and then we were rather
surprised by the inflation
rate which came out later on.
After that in February [2022]
in particular which triggered
the 250 basis points [2.5%]
adjustment in the policy rate”,
he explained.
DAILY ANALYST Friday, 20th May, 2022
used in compiling this listicle
are courtesy of Numbeo, the
leading global provider of
perceived consumer prices and
other statistics.
Below are the 9 most
expensive African countries to
rent a one-bedroom apartment
Ghana: This West African
country has a property price to
income ratio of 87.65%, as well as
an affordability index of 0.04%.
A one-bedroom apartment in
Accra's city centre could cost as
much as $884.46 per month. And
the average monthly net salary
after tax is $344.84.
Kenya: Kenya's property
price to income ratio is 24.24%,
even as the affordability index
stands at 0.29%. A one-bedroom
accommodation in Nairobi's
city centre goes for an average
of $389.62 per month. And the
average monthly net salary is
$493.38.
Algeria: Next we have this
Northern African country which
has a property to income ratio
of 18.25% and an affordability
index of 0.61%. A one-bedroom
apartment in the centre of
Algiers, Algeria's capital city,
goes for an average price of
$211.85 per month. Meanwhile,
the average monthly salary is
$250.09.
Governor of the Bank
of Ghana, Dr. Ernest
Addison has noted that
even though inflation
keeps increasing and
the cedi remains unstable, the
economy is growing strongly.
He noted that the economy is
rebounding from the devastating
effects of the COVID-19 pandemic
according to data gathered by the
Central bank.
Dr. Addison was speaking
to Bloomberg ahead of the
Monetary Policy Committee
(MPC) meeting, which began on
18th May 2022 to 20th May 2022.
“The Ghanaian situation
in a sense also reflects what
happened in 2020 where
the government took a very
expansionary stance on policy.
Therefore, there were many
interventions that were put into
place in order to protect lives and
livelihoods.”
“The impact of that was real
sector being more resilient than
we see in other places. As I said,
we are beginning to see a pick-up
in growth in 2021”, Dr. Addison
emphasized.”
Reports have indicated that
sectors such as Information,
Communications, and
Technology; Tourism and
Hospitality; Manufacturing have
recorded strong growth rates and
are growing steadily.
“Some of the data that has
come in 2022 does not suggest
that we are slowing down. I
Nigeria: Africa's most
populous country has a property
to income ratio of 16.11%, even
an affordability index 0.31%. In
the commercial capital of Lagos,
a one-bedroom apartment in the
city centre could go for as high
as $1,567 per month. Meanwhile,
the average net salary in the city
is $232.93.
Morocco: Morocco has a
property price to income ratio
of 12.60% and an affordability
index of 0.98. In the centre of the
country's capital city of Rabat, a
one-bedroom apartment goes for
an average of $469.49 per month.
Meanwhile, the average net
salary in the city is $429.62.
Egypt: Egypt has a property
price to income ratio of 12.04%
and an affordability index of
0.61%. A one-bedroom apartment
in Cairo's city centre goes for an
average of $225.40 per month.
Meanwhile, residents in the city
earn an average monthly net
salary of $258.89.
believe, if we were to choose
between growth and inflation,
the policy priority should be
managing the pace at which
prices are increasing”, he added.
The Ghana Statistical
Service (GSS) report on the Gross
Domestic Product for 2020 and
2021 shows that the economy
has expanded more than was
anticipated.
According to the GSS data
released on April 20, 2022, real
GDP expanded by 7 percent in the
fourth quarter of 2021 compared
to the 4.3 percent growth
recorded in the corresponding
period of 2020. Similarly, non-oil
real GDP in the fourth quarter
of 2021 expanded by 7.6 percent
compared to 5.7 percent for the
same period in 2020.
Tunisia: Tunisia has a
property to income ratio of
11.75% as well as an affordability
index of 0.61%. In the centre of
Tunis, a one-bedroom apartment
could go for $228.95 per month.
The average monthly net salary
in the city is $271.59.
Mauritius: This island
nation has a property to income
ratio of 9.71% and a property
affordability index score of
0.61%. At the centre of Port Louis,
the country's capital, a onebedroom
apartment can go for
an average rental price of $393.97
per month. The average salary is
$455.
South Africa: SA has a
property to income ratio of
3.07% and an affordability
index of 2.93%. At the centre of
Johannesburg, a one-bedroom
apartment can go for $422.94 per
month. Meanwhile, the monthly
net salary is $1,535.73.
Ghana's economy growing strongly,
data suggests fast pick-up – Governor
On an annual basis, the
provisional real GDP growth for
2021 showed a positive outturn
of 5.4 percent, exceeding the 4.4
percent 2021 projected outturn by
1 percentage point and the Sub-
Sahara Africa average growth by
0.9 percentage point.
An indication that the
economy is on the rebound post
the COVID-19 pandemic, which
saw a revised growth rate of only
0.5 percent in 2020.
The non-oil real GDP
according to the GSS data has
also expanded from 1.0 percent in
2020 to 6.9 percent in 2021 - the
highest non-oil real GDP growth
rate since the rebasing was done
in 2013 - exceeding the target of
5.9 percent for the period.