A new report has shed light on the top 10 African countries with the most affordable rent in 2025, with Algeria ranking number one on the list. According to data from Numbeo, these countries offer the most affordable housing options, which can have a significant impact on economic growth, business development, and talent retention.

The importance of affordable housing cannot be overstated. It frees up household funds, allowing families to devote more of their income to necessities like food, healthcare, and education, as well as other expenditures and investments. This, in turn, increases consumer spending, a key engine of economic growth, driving demand in a variety of industries and promoting business growth, employment creation, and general economic development.

For young professionals and skilled workers, affordable housing makes cities and metropolitan centers more appealing, allowing countries to retain their talents and even draw in more skilled individuals from other regions. This boosts regional economies and guarantees companies a consistent flow of highly qualified workers.

Entrepreneurs, too, benefit from low rent, as it lessens the financial strain of starting or growing a business, allowing them to focus more of their resources on expansion rather than accommodation. This encourages medium-sized businesses (SMEs) to expand, which are essential for job creation and economic diversification.

In essence, affordable housing helps cut the total cost of living and running a business, making any given country more competitive and appealing to both foreign and local investors. With that in mind, here are the top 10 African countries with the most affordable rent in 2025, according to Numbeo:

1. Algeria - Rent index: 3.4, Global rank: 5th

2. Somalia - Rent index: 3.5, Global rank: 6th

3. Egypt - Rent index: 3.5, Global rank: 8th

4. Libya - Rent index: 3.9, Global rank: 9th

5. Madagascar - Rent index: 4.5, Global rank: 10th

6. Tunisia - Rent index: 4.6, Global rank: 11th

7. Botswana - Rent index: 5.6, Global rank: 13th

8. Morocco - Rent index: 7.1, Global rank: 21st

9. Kenya - Rent index: 7.6, Global rank: 25th

10. Rwanda - Rent index: 8.2, Global rank: 33rd

The implications of this report are far-reaching, and it will be interesting to see how these countries leverage their affordable housing options to drive economic growth and attract talent and investment.

For more information on the top 10 African countries with the most affordable rent in 2025, visit Business Insider Africa.