A new report by ActionAid has revealed the devastating impact of austerity-driven budget cuts on health and education systems across six African countries, including Ethiopia. The study, titled “The Human Cost of Public Sector Cuts in Africa,” highlights a significant decline in public investment and the consequences it brings for both workers and communities.

Surveying more than 600 healthcare workers, teachers, and community members in Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria, the report found stark indicators of crisis. Teachers’ salaries have dropped by up to 50% over the past five years, and 97% of healthcare workers reported that their income no longer covers basic needs such as food and rent.

In Ethiopia, the situation has grown particularly severe. There is a dire shortage of affordable medical supplies, with residents forced to seek care at high-cost private clinics. “Five years ago, we could buy antimalarial drugs for 50 birr. Now it costs over 500 birr in private centers,” said Marym, a resident of Muyakela Kebele.

The education sector is also under immense pressure. Across the surveyed countries, 87% of teachers reported a lack of basic teaching materials, often having to cover these costs out of their own pockets. “With over 200 students and no resources, delivering quality education is nearly impossible,” said Maluwa, a primary school teacher from Malawi.

ActionAid attributes these widespread challenges to austerity policies promoted by the International Monetary Fund (IMF). The organization argues that IMF-driven fiscal frameworks encourage governments to prioritize debt repayments over essential public spending. For instance, in 2024, Nigeria allocated just 4% of national revenue to health, while over 20% was directed to servicing foreign debt.

“The IMF’s push for austerity is forcing countries to sacrifice essential services,” said Andrew Mamedu, ActionAid Nigeria’s Country Director. “Governments must prioritize people, not debt.”

In response, ActionAid is calling for increased investment in public services through fair and progressive taxation, and a shift away from harmful economic policies that deepen inequality and weaken public institutions.