By Abiodun Abdullai
The International Labour Organization (ILO) has ranked African countries by their minimum wage levels for 2025, with Seychelles, Mauritius, and Morocco emerging at the top.
Seychelles leads with a monthly minimum wage of $404, supported by a low unemployment rate of 3% and a strong tourism-driven economy.
Mauritius follows at $377, reflecting consistent wage reforms alongside a diversified economy.
Morocco is third with $362, with the government already planning a further 20% increase by 2026.
Other countries in the top 10 include:
South Africa – $273.15
Equatorial Guinea – $231
Libya – $185
Tunisia – $181
Algeria – $154
Egypt – $145
Mauritania – $112.64
Read also;
Business and Economic Impact
While higher minimum wages are designed to protect workers, the reality is mixed. South Africa, despite higher wages, continues to battle a 32.8% unemployment rate. Egypt faces rising inflation, which offsets wage gains.
For SMEs, wage increases often bring pressure on operating costs, particularly in labour-intensive sectors such as agriculture, manufacturing, and retail. Countries like Mauritius and Morocco have attempted to ease this impact by pairing wage adjustments with business-friendly reforms.
Nigeria's Position
Nigeria, which recently reviewed its minimum wage, does not feature in Africa's top 10. With inflation hovering above 20% and SMEs under pressure from rising costs, the debate on wage sustainability continues. Analysts warn that without parallel reforms in energy, infrastructure, and credit access, higher wages could squeeze smaller businesses while offering limited relief to workers.
The ILO ranking highlights the ongoing policy challenge across Africa: how to raise living standards without stifling businesses that drive economic growth.
