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Public finance

Public Spending Cuts in Africa Leave Health and Education Workers in Crisis

Strategic Insights

— 2 min read

Public spending cuts across six African countries have severely impacted the incomes of health and education workers, leaving them struggling to make ends meet. According to the ActionAid report, 97 percent of healthcare workers surveyed in Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria could not cover their basic needs with their wages. The report blames the International Monetary Fund (IMF) for advising governments to cut public spending to pay back foreign debt, which has resulted in deteriorating healthcare and education systems.

Key Takeaways:

  • The incomes of health and education workers in six African countries have fallen by up to 50 percent in five years, with healthcare workers unable to cover their basic needs.
  • 97 percent of surveyed healthcare workers in Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria could not cover their basic needs with their wages.
  • The International Monetary Fund (IMF) is to blame for advising governments to cut public spending to pay back foreign debt.
  • More than three-quarters of all low-income countries in the world are spending more on debt servicing than healthcare.
  • In 2024, Nigeria allocated only 4% of its national revenue to health, while 20.1% went towards repaying foreign debt.
  • Women are disproportionately affected, with 4 women giving birth at home in Kenya due to unaffordable hospital fees.
  • Medicines for malaria are now 10 times more expensive at private facilities, making them unaffordable for many.
  • Millions lack access to lifesaving healthcare due to long travel distances, rising fees, and a medical workforce shortage.
  • Budget cuts have led to failing public education systems, with teachers struggling to deliver quality education due to overcrowded classrooms, lack of materials, and low wages.

Statistics:

  • 97% of surveyed healthcare workers in six African countries could not cover their basic needs with their wages.
  • 50% income decline for health and education workers in five years.
  • 4% of Nigeria's national revenue was allocated to health in 2024.
  • 20.1% of Nigeria's national revenue was spent on repaying foreign debt in 2024.
  • 10-fold increase in the cost of malaria medication at private facilities.
  • 87% of teachers lacked basic classroom materials.
  • 73% of teachers paid for materials themselves.
  • 84% of teachers experienced a 10-15% decline in income over the past five years.
  • Over 200 students in some classes.
  • Less than one-fifth of the national budget is spent on education in four of the six countries.
  • 4 women gave birth at home in Kenya due to unaffordable hospital fees.

Sources:

  • ActionAid report: "The Human Cost of Public Sector Cuts in Africa"
  • International Monetary Fund (IMF)
  • UNESCO Institute for Statistics
  • ActionAid Nigeria's Country Director Andrew Mamedu
  • ActionAid International's global economic justice lead Roos Saalbrink
  • Community member from Muyakela Kebele in Ethiopia, identified as Marym
  • Healthcare worker from Kenya, identified as Maria
  • Teacher from Liberia, identified as Kasor
  • Teacher from Malawi, identified as Maluwa

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