High Healthcare Costs Push 150m Africans Into Poverty–WHO

A new report by the World Health Organisation (WHO) regional office for Africa has revealed that high healthcare costs are driving millions into poverty across the continent.

The report, released yesterday in commemoration of the Universal Health Coverage (UHC) Day, underscored the heavy reliance on out-of-pocket payments to fund health services in Africa, which continues to be a significant barrier to achieving UHC.

The data shows that over 200 million people in Africa face financial strain due to out-of-pocket health payments, with more than 150 million individuals being pushed deeper into poverty as a result.
Half of the people impoverished globally by such payments live in Africa, highlighting a growing crisis in the region, the report stated.

WHO regional director for Africa, Dr. Matshidiso Moeti, explained the ripple effect of these costs, stating, “Having to pay for medicines and other health-care costs out of their own pocket can instantly bend the trajectory of someone’s life toward financial hardship and ill health. Such payments force many to spend less on other basic needs such as food and housing, worsening their conditions.”
The report found that between 2000 and 2019, the number of people making catastrophic out-of-pocket payments, spending more than 10 percent of their household income on health, rose from 52 million to 95 million.

According to the report, while some progress has been made in reducing the number of people pushed into poverty by such payments, the rate of improvement in Africa lags far behind global trends.
Highlighting the key findings, the report shows that in 2019, out-of-pocket payments accounted for over 25 percent of health spending in 31 African countries, exceeding 50 percent in 11 countries and 70, percent in three others.
While the global number of people impoverished due to health costs dropped by over 75 percent between 2000 and 2019, Africa saw only a 50 percent decrease.
Medicines and outpatient care were identified as the primary drivers of financial hardship while vulnerable populations, such as rural households, older adults, and those living in multigenerational homes, were most affected.

Despite these challenges, the report revealed that countries with greater government investment in health services reported lower rates of financial hardship from out-of-pocket payments.
It called for urgent action to protect populations from financial hardship, including exempting poor people from healthcare fees, expanding government-funded health services, and introducing health insurance schemes.