Crippling budget cuts have left Africa’s public sector workers underpaid, overworked and struggling to make ends meet, ActionAid study finds

  • Teachers across Africa are buckling under the weight of brutal austerity measures, losing up to half of their income over five years
  • Nearly all health workers (97%) surveyed by ActionAid said their wages aren’t enough to cover food, electricity and household expenses.
  • 87% of teachers reported shortages of basic classroom materials, with three quarters of staff (73%) paying for equipment out of their own pockets
  • This compounded by a global debt crisis where 3.3 billion people live in countries that spend more on interest than education or health
A new study by ActionAid reveals that deep cuts to public spending in education and health across six African countries have seen workers struggling to afford essentials like food and resulted in overcrowded classrooms and failing healthcare.

Published today, The Human Cost of Public Sector Cuts in Africa surveyed over 600 healthcare workers, teachers and community members in Ethiopia, Ghana, Kenya, Liberia, Malawi, and Nigeria. The study highlights that teachers’ salaries have plummeted by between 10% and 50% over the past 5 years, with an alarming 97% of health workers reporting insufficient wages for basic needs like rent, food and household expenses.

The study paints a bleak picture of failing public systems – especially for women and girls. It shows how governments’ inadequate investments in education and health sectors have left workers struggling to make ends meet and communities failing to access quality public services.

Karol Balfe, ActionAid Ireland CEO, said:

“In Ireland, people are feeling the cost of living crisis and inflation- putting pressure on families and households. In the Global South, people are also feeling pressure and this is compounded by a debt crisis and drive for austerity by bodies such as the International Monetary Fund (IMF). People in these countries are bearing the brunt of an unfair global economic system held in place by outdated institutions.”

“This means the burden of debt falls on those most marginalised – once again. This must end.”

ActionAid Ireland says the IMF is to blame for its advice to governments to cut spending on public services in order to service foreign debts. With the accelerating debt crisis in the Global South, 75% of all low-income countries in the world are spending more on debt servicing than they spend on health.

Andrew Mamedu, the Country Director of ActionAid Nigeria, said:

“The debt crisis and the IMF’s insistence on cuts to public services in favour of foreign debt repayments have severely hindered investments in healthcare and education across Africa. For example, in 2024, Nigeria allocated only 4% of its national revenue to health, while a staggering 20.1% went toward repaying foreign debt.

“This is not only absurd but unsustainable in the long run..”

The research highlights how insufficient budgets in the healthcare system have led to chronic shortages and a decline in service quality. Community members in all six countries revealed deep dissatisfaction with the public healthcare system and noted rising costs of services, shortage of healthcare workers, and poor infrastructure. What’s also clear is the disproportionate impact on women, as Maria*, a healthcare worker from Kenya, explains:

“In the past month, I have witnessed four women giving birth at home due to unaffordable hospital fees. The community is forced to seek vaccines and immunisation in private hospitals since they are not available in public hospitals. Our [local] health services are limited in terms of catering for pregnant and lactating women, as a result, most women must seek services in Mombasa, which is expensive.”

Medicines for malaria are now ten times more expensive at private facilities. Long travel distances, rising fees and a dwindling medical workforce are leaving millions without healthcare as Marym*, a community member from Muyakela Kebele, Ethiopia, reveals:

“Now malaria is an epidemic in our area [because medication is now beyond the reach of many]. Five years ago, we could buy [antimalarial medication] for 50 birrs (USD 0.4), but now it costs more than 500 birr (USD 4) in private health centres.”

Rose*, a community member from Taita Taveta in Kenya, said:

“We are referred for diagnosis tests 40 km away from the [local] dispensary. Doctor’s consultation has [doubled] at the referral hospital, making it difficult for the community to access services.”

In education, the toll is equally severe. Budget cuts have resulted in failing public education systems crippled by rising costs, a dire shortage of learning materials and overcrowded classrooms. Some 87% of teachers said they lacked basic classroom materials, with 73% shelling out for equipment themselves. Meanwhile, teachers’ incomes are falling: 84% of teachers surveyed reported a drop in real income of between 10 and 50% over the past five years.

“I now believe teaching is the least valued profession. With over 200 students in my class and inadequate teaching and learning materials, delivering quality education is nearly impossible. Monitoring individual performance and supporting struggling students has become a daunting task,” said Maluwa*, a primary school teacher in Malawi’s Rumphi District.

Four of the six countries covered by the research are spending less than the recommended one-fifth of the national budget on education and exceed the ratio of one teacher per 30 pupils, as reported by the UNESCO Institute for Statistics.

Kasor, a teacher from Liberia, with 80 pupils in his class, said: “The ministry doesn’t provide teaching aids or textbooks. I feel stressed and hopeless. We need better infrastructure and resources to cope with these changes.”

On a personal level, due to reduced income, Kasor said, “I often struggle to put enough food on the table.”

Ms Balfe said: “It’s crucial that governments agree on new international rules on global economic governance that shift important decisions away from the IMF and towards democratic institutions, such as the United Nations, to shape a fair and inclusive global economy for all.”

ActionAid Ireland is calling on education and health ministries to work with finance ministries to allocate sufficient resources to meet global benchmarks, ensure fair remuneration for workers, and improve infrastructure to deliver quality services.

Protesters holding End Fossil Fuels banner at a climate demonstration, advocating for renewable energy solutions.

Protestors at COP 28 in Dubai. Photo: Konrad Skotnicki.

Climate protest with diverse crowd holding signs about environmental action in a city square.

Belfast Climate Change March, 2019. Photo: Trócaire.

The Profit Driving the Crisis

Despite their overwhelming contribution to global emissions, fossil fuel companies continue to attract significant financial backing—driven by their enduring profitability. This is starkly illustrated by the case of ExxonMobil, the top fossil fuel investment held by asset managers based in Ireland. In 2023, ExxonMobil reported €33.63 billion ($36 billion) in profit. That is almost twice the GDP of Botswana (€18.1 billion) and nearly three times Namibia’s GDP (€11.5 billion).

Ireland plays a hugely disproportionate role in facilitating investments into fossil fuel companies like ExxonMobil. In 2023, the investments made into fossil fuel companies by investment managers based in Ireland generated an estimated 72.5 million tons of CO2e. This is more than the CO2e emissions for the entire country of Ireland—and more than ten times that generated by Sierra Leone.

The Global Human Impact

The climate crisis is here, now, and it is causing disproportionate harm in the Global South. In Bangladesh, rising sea levels and increasingly severe cyclones are displacing coastal communities, with projections indicating that 17% of the entire country could be underwater by 2050. The legally binding Paris Agreement on climate change explicitly acknowledges the importance of tackling private finance. Its three overarching goals are: keeping below 1.5C of warming; increasing adaptation and making finance flows consistent with low emissions and resilience.

This gives a clear mandate for action:  both tax reform and corporate regulation are needed to tackle financial flows, and both nationally in Ireland and at EU level, ‘polluter pays’ taxes are lacking and regulation of the financial sector remains weak and fragmented. While EU regulation exists, it is designed more to nudge investors toward more sustainable investment practices by increasing transparency and reporting levels than to enforce strict standards. And it is moving in the wrong direction: the recently passed EU Corporate Sustainability Due Diligence Directive excluded investments; and now the EU Commission’s Omnibus legislative proposal threatens to undo the limited gains made on climate plans, as well as blocking future attempts for stronger action at national level.

The Risk of Inaction

Fossil fuel investment is too profitable to remain weakly regulated. If Ireland continues with its current strategy of encouraging FDI at all costs, and relying on weak EU regulation, we are headed for catastrophe. The Inter-governmental Panel on Climate Change has repeatedly warned that every fraction of a degree beyond 1.5°C brings irreversible consequences: collapsed ice sheets, vanishing coral reefs, and extreme weather events that will make vast regions of the planet uninhabitable. And yet, companies are developing oil and gas fields that could push global warming beyond 2°C.

Our research found that 91% of the investments made into fossil fuel companies by investment managers based in Ireland were to companies that have plans for fossil fuel expansion like these. Ireland cannot afford inaction on this issue.

About This Research

The figures in this report regarding investment from Ireland are based on new research commissioned by ActionAid Ireland and Trócaire. In the paper, we uncover the scale of fossil fuel investment through Ireland, who the investors are, and in which fossil fuel companies they are investing.  We analyse the current regulatory framework and explain why it is inadequate—and moving in the wrong direction. And we make specific recommendations for change, which are summarised below.

Summary of Recommendations

Regulate the private financial sector
Ireland must end its outsized role as an enabler of destructive fossil fuel investment. Ireland should introduce a strong gender-responsive national human rights and environmental due diligence framework which includes the regulation of investors with respect to human rights and the environment and climate. The transposition of the EU Corporate Sustainability Due Diligence Directive could achieve this if downstream activities are included and the Omnibus proposal is rejected. Ireland should prohibit investments in fossil fuel expansion and require investors to implement climate transition plans consistent with a 1.5°C climate limit.

Endorse the Fossil Fuel Non-Proliferation Treaty
Ireland should endorse developing a Fossil Fuel Non-Proliferation Treaty to curb fossil fuel expansion and commit to a fair and funded phase out of fossil fuels.

Support tax justice
Ireland should support bold and fair new global tax rules through the UN Framework Convention on Tax, should adopt all OECD BEPS measures, and should conduct an updated and comprehensive spillover analysis of its tax policy. Ireland should take coordinated action globally, at the EU level and domestically to introduce a range of new taxes to mobilise finance needed for climate justice, based on ‘polluter pays’ and social equity principles such as wealth taxes for the highest earners, climate damages tax on investors, fossil fuel production taxes and levies on aviation and shipping.

Finance a just transition
Ireland must also meet its fair share climate finance obligations under Article 9.1 of the Paris Agreement, and pay our ecological debt to the Global South. Ireland should support conditionality-free debt cancellation for countries on the front lines of the climate crisis, commit to a new UN Framework Convention on Sovereign Debt, moving debt negotiations from the IMF to the UN, and to a debt workout mechanism that is fully representative and fair.

Further reading