By Wanangwa Mtwali
Africa-Press – Malawi. In a blistering new report, global justice group ActionAid has laid bare the devastating toll of International Monetary Fund (IMF)-backed austerity policies on African workers, accusing the institution of effectively gutting public services to feed a never-ending appetite for debt repayment.
The report — “The Human Cost of Public Sector Cuts in Africa” — doesn’t mince words. It squarely blames the IMF for pressuring African governments to slash budgets for health and education, pushing already fragile public systems to the brink and forcing frontline workers into extreme poverty.
In six African nations — Malawi, Ghana, Kenya, Liberia, Nigeria, and Ethiopia — teachers and healthcare workers say they are being crushed under the weight of IMF-prescribed cuts. With pay slashed by up to 50% over the past five years, 97% of health workers say their salaries no longer cover basic living costs.
“This is not just about numbers,” the report warns. “This is about millions of people — especially women and girls — being denied basic rights. The IMF’s obsession with debt repayment is turning classrooms and clinics into graveyards of potential.”
The study paints a damning picture of governments bending over backwards to satisfy foreign creditors, while neglecting the very people they serve. Over 75% of low-income countries now spend more on debt servicing than on health — a chilling statistic that underscores a system rigged against the poor.
Malawi: A Case in Point
ActionAid Malawi Executive Director Yandura Chipeta called out the country’s lopsided budget priorities: in 2024 alone, a jaw-dropping 25.4% of Malawi’s national revenue went to debt repayments — compared to a paltry 5.7% for health.
“It’s no mystery why our health system is crumbling,” Chipeta said. “We’re sacrificing our future on the altar of foreign debt.”
In Malawi’s Rumphi District, primary school teacher Mercy Maluwa has 200 pupils crammed into a single classroom, with barely any materials. “Our profession is no longer respected. We are overworked, underpaid, and forgotten,” she said.
The study also found 87% of teachers lacked even basic classroom resources, and nearly three-quarters were forced to buy supplies from their own meagre salaries.
Communities Breaking Under the Strain
The austerity fallout goes beyond the classroom and clinic walls. Tiwonge Gondwe, a grassroots activist, said women and girls are increasingly shouldering the burden of unpaid care work in place of failing public services — fetching water, nursing the sick, and filling gaps in early childhood care.
“This is a crisis of justice,” Gondwe said. “Our government must stop dancing to the IMF’s tune and start prioritizing its people.”
The Call: Cancel the Debt, Rebuild Public Services
ActionAid is demanding that the IMF immediately reverse its damaging policy advice and that African governments, including Malawi’s, push hard for debt cancellation and a new global financial system that puts lives before loans.
As the report makes clear: if nothing changes, Africa’s public sector workers will continue to pay the price — not just in wages lost, but in dignity denied, potential wasted, and lives cut short.
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