Life on $1.90: Creative Budgeting in Africa’s Hardest-Hit Communities

In some of Africa’s poorest communities, where over 413 million people live on less than $1.90 a day, inflation is making life even harder. Prices for everyday needs like maize, cooking oil, and transport are rising fast, putting a heavy strain on low-income families.

In 2024, average inflation across Sub-Saharan Africa reached 9%, and food prices are expected to rise by 3–5% in 2025. With global trade tensions and climate disasters adding pressure, many families are struggling just to afford the basics.

For the poor, every price increase is a crisis

In Sub-Saharan Africa, families spend about half of their income on food and energy, so when prices rise, it hits them hardest. The World Bank reports that 12% of people in the region are facing food insecurity, a problem made worse by a 20% rise in food prices since 2020.

For example in Nigeria, inflation reached 33% in 2024, with food prices rising by 200%, making basic meals unaffordable for many.

Kenya’s inflation hit 16.5%, and experts warn that it could push two million more people into poverty—especially after new tax increases.

Experts are encouraging simple but effective ways for people to stretch their money:

• Community budgeting: Families can save by pooling money and buying food like rice or sorghum in bulk.
• Barter systems: In rural areas, people are going back to trading items or labor instead of using cash.
• Urban budgeting: People are being advised to buy locally grown vegetables instead of expensive imported food and to skip non-essential items like processed snacks.
• Prioritize Needs Over Wants, Identify essential expenses and cut back on non-essential spending.