ITUC-Africa decries impacts of inflation, rising debt

With an average of 15 per cent inflation rate and 20 per cent food inflation across Africa, citizens including workers are on the edge, the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) has said.

In its New Year message, the General Secretary of the Continental Trade Union, Joel Odigie, pointed out that inflation has become a defining feature of Africa’s economic environment in 2024, driven by global supply chain disruptions, currency devaluations and domestic mismanagement.

“Average inflation rates across the continent hover around 15 per cent, with food prices increasing by as much as 20 per cent in some regions.

“In Ghana, for example, the cost of staple foods such as maize and rice has doubled within the past year, pushing millions into hunger and poverty. Women and children are disproportionately affected as feminine poverty continues to rise.

“In Nigeria, the number of out-of-school children has reached alarming levels, with an estimated 10.5 million children not receiving formal education – a trend directly linked to the economic pressures on households,” he said.

Worryingly, he stated that austerity measures imposed by international financial institutions have compounded the challenges as governments slashed budgets for healthcare, education and public infrastructure by prioritising debt repayment over social investments, which disproportionately harm the poor and working class.

Odigie lauded the African organised trade unions for standing for the hapless populace by opposing oppressive economic policies by continually advocating for progressive taxation, increased public spending and social investments to stimulate economic growth and alleviate poverty.

The ’ITUC-Africa lamented that the debt burden of African nations grew astronomically in 2024 with total public debt exceeding $1.5 trillion.
Indeed, debt servicing now consumes over 50 per cent of government revenues in many countries, leaving little room for investment in essential public services.

The trade union noted that while the labour movement has been vocal in calling for rethinking the global financial architecture perpetuating this crisis, it will continue to push for debt forgiveness, responsible lending practices, and inclusive national debt management processes.

He added: “These efforts ensure that resources are redirected from debt servicing to critical areas such as education, healthcare, job creation and infrastructure development.”

It welcomed the growing recognition of the need for transparency and accountability in debt management, saying: “Civil society organisations and trade unions call for inclusive stakeholder consultations in national debt planning and restructuring processes.”

The regional trade union also expressed worry about the impact of illicit financial flows (IFFs) on Africa’s economy. Africa loses an estimated $88.6 billion annually to illicit financial flows, equivalent to 3.7 per cent of the continent’s GDP.