Still few African cities meet world quality standards

> Thandisizwe Mgudlwa

African government's and their stakeholders must be very concerned and bothered by the fact that only a hand full of African countries have made it to the top 100 city's with a high standard of living global  survey.

At least five African cities which are also economic hives in their countries have made it to the list of the 100 Mercer's top 100 world’s highest quality of living destinations.

This is Mercer's 19th Quality of Living ranking. Mercer produces worldwide quality-of-living rankings annually from its Worldwide Quality of Living Surveys and individual reports are produced for each city surveyed.

The three South African cities that have made the top 100 are Durban (87) ranked the highest for quality of living within South Africa, which followed by Cape Town (94) and Johannesburg (96).

While the other two African countries in the top 100 include Port Louis, in Mauritius, which tops Africa chart at 84th spot and Port Louis is also the only Africa city which made it to top 100 rankings within the category of highest for infrastructure in 94th place.

The study further notes that despite increased political and financial volatility in South Africa. "Its cities fell within the top 100 of the world’s highest quality of living and remain attractive destinations for expanding business operations and sending expatriates on assignment, according to Mercer’s19th annual."

Ilya Bonic, senior partner and president of Mercer’s Career business, commented “Economic instability, social unrest, and growing political upheaval all add to the complex challenge multinational companies face when analysing quality of living for their expatriate workforce,” said Bonic,“For multinationals and governments it is vital to have quality of living information that is accurate, detailed, and reliable. It not only enables these employers to compensate employees appropriately, but it also provides a planning benchmark and insights into the often-sensitive operational environment that surrounds their workforce.

“In uncertain times, organisations that plan to establish themselves and send staff to a new location should ensure they get a complete picture of the city, including its viability as a business location and its attractiveness to key talent,” Mr Bonic added.

Meanwhile, Vienna occupies first place for overall quality of living for the 8th year running, with the rest of the top-ten list mostly filled by European cities: Zurich is in second place, with Munich (4), Dusseldorf (6), Frankfurt (7), Geneva (8), Copenhagen (9), and Basel, a newcomer to the list, in 10th place. The only non-European cities in the top ten are Auckland (3) and Vancouver (5). The highest ranking cities in Asia and Latin America are Singapore (25) and Montevideo (79), respectively.

Mercer’s survey also includes a city infrastructure ranking that assesses each city’s supply of electricity, drinking water, telephone and mail services, and public transportation as well as traffic congestion and the range of international flights available from local airports. Singapore tops the city infrastructure ranking, followed by Frankfurt and Munich both in 2nd place. Baghdad (230) and Port au Prince (231) rank last for city infrastructure.

Mercer’s authoritative survey is one of the world’s most comprehensive and is conducted annually to enable multinational companies and other organisations to compensate employees fairly when placing them on international assignments. In addition to valuable data, Mercer’s Quality of Living surveys provide hardship premium recommendations for over 450 cities throughout the world; this year’s ranking includes 231 of these cities, revealed the survey.

Slagin Parakatil, Principal at Mercer and responsible for its quality of living research said, “The success of foreign assignments is influenced by issues such as ease of travel and communication, sanitation standards, personal safety, and access to public services,” notes Parakatil,  “Multinational companies need accurate and timely information to help calculate fair and consistent expatriate compensation – a real challenge in locations with a compromised quality of living.”

Parakatil added, “A city’s infrastructure, or rather the lack thereof, can considerably affect the quality of living that expatriates and their families experience on a daily basis. Access to a variety of transport options, being connected locally and internationally, and access to electricity and drinkable water are among the essential needs of expatriates arriving in a new location on assignment. A well-developed infrastructure can also be a key competitive advantage for cities and municipalities trying to attract multinational companies, talent, and foreign investments.”

Dubai (74) continues to rank highest for quality of living across the Middle East, rising one position in this year’s ranking, followed closely by Abu Dhabi (79), which climbed three spots. Damascus (225) in Syria, Sana’a (229) in Yemen and Baghdad (231) in Iraq are the region’s three lowest-ranked cities for quality of living.

“Cities that rank high in the city infrastructure list provide a combination of top-notch local and international airport facilities, varied and extended coverage through their local transportation networks, and innovative solutions such as smart technology and alternative energy,” added Parakatil. “Most cities now align variety, reliability, technology, and sustainability when designing infrastructure for the future.”

In North America, Canadian cities took the top positions in the ranking. Vancouver (5) is again the region’s highest ranking city for quality of living. Toronto and Ottawa follow in 16th and 18th place respectively, whereas San Francisco (29) is the highest ranking US city, followed by Boston (35), Honolulu (36), New York (44), and Seattle (45). High crime rates in Los Angeles (58) and Chicago (47) resulted in these cities dropping nine and four places respectively. Monterrey (110) is the highest ranking city in Mexico, while the country’s capital, Mexico City, stands in 128th position. In South America, Montevideo (79) ranks highest for quality of living, followed by Buenos Aires (93) and Santiago (95). La Paz (157) and Caracas (189) are the lowest ranking cities in the region, according to the report.

Moreover, the study reports, "comparative quality-of-living indexes between a base city and host city are available, as are multiple-city comparisons.
The data was largely analysed between September and November 2016, and it will be updated regularly to account for changing circumstances. In particular, the assessments will be revised to reflect significant political, economic, and environmental developments.The list of rankings is provided to media for reference, and should not be published in full. The top 10 and bottom 10 cities in either list may be reproduced in a table.

The information and data obtained through the Quality of Living reports are for information purposes only and are intended for use by multinational organisations, government agencies, and municipalities. They are not designed or intended for use as the basis for foreign investment or tourism. In no event will Mercer be liable for any decision made or action taken in reliance of the results obtained through the use of, or the information or data contained in, the reports. While the reports have been prepared based upon sources, information, and systems believed to be reliable and accurate, they are provided on an “as-is” basis, and Mercer accepts no responsibility/liability for the validity/accuracy (or otherwise) of the resources/data used to compile the reports. Mercer and its affiliates make no representations or warranties with respect to the reports, and disclaim all express, implied and statutory warranties of any kind, including, representations and implied warranties of quality, accuracy, timeliness, completeness, merchantability, and fitness for a particular purpose.

Companies need to determine expatriate compensation packages rationally, consistently, and systematically using reliable data. Providing incentives to reward and recognise the effort that employees and their families make when taking on international assignments remains a typical practice, particularly for difficult locations.

Two common incentives include a quality-of-living allowance and a mobility premium, a quality-of-living or “hardship” allowance compensates for a decrease in the quality of living between home and host locations; a mobility premium simply compensates for the inconvenience of being uprooted and having to work in another country.

A quality-of-living allowance is typically location-related, while a mobility premium is usually independent of the host location. Some multinational companies combine these premiums, but the vast majority provides them separately."

More broadly, "Mercer also helps municipalities to assess factors that can improve their quality of living rankings. In a global environment, employers have many choices about where to deploy their mobile employees and set up new business. A city’s quality of living can be an important variable for employers to consider.

Leaders in many cities want to understand the specific factors that affect their residents’ quality of living and address those issues that lower a city’s overall quality-of-living ranking. Mercer advises municipalities by using a holistic approach that addresses the goals of progressing towards excellence and attracting both multinational companies and globally mobile talent by improving the elements that are measured in its Quality of Living survey, " Mercer further reveals.