2024 IIAG blog – Bridging the financing gap in Health and Education: a key challenge for Africa's development

Recent improvements in health and education outcomes reflect increased investment in these sectors across Africa. Countries like Namibia, Botswana, South Africa, Cabo Verde, and Lesotho stand out, each allocating over 10% of their GDP to health and education. This level of commitment is essential for progress, yet significant challenges persist, particularly in bridging the financing gap.

According to UNESCO estimates, in 2021, total education spending in Africa rose by 2%, primarily driven by government contributions, which account for 69% of the total. However, governments spent an average of 3.7% of GDP on education, still below the recommended 4%. Aid to education in sub-Saharan Africa dropped by 23%, returning to pre-COVID levels, further straining resources. Aid now makes up just 5% of education spending, while households contribute 27%, with families paying 1.5 to 5 times more for private education than for public schooling.

Achieving education goals will require an additional $77 billion annually, but international aid to the sector has stagnated. On health, catastrophic out-of-pocket expenditures remain a major burden in countries like Uganda, Burundi, Kenya, and Tanzania, where over 20% of health expenses are paid by citizens directly. Reducing this figure to below 15% is critical for achieving Universal Health Coverage and shielding households from financial hardship.