Fit for the future? New research reveals the need to shift public spending in Africa to early childhood

How African countries can optimize the impact of their social spending and effectively build human capital that can foster equitable growth by rethinking the distribution of resources for children by age.

January 09, 2025 by Sarah Hague, UNICEF, and Joa Keis, GPE Secretariat
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5 minutes read
Students at St Luke's Pre-primary School in Wilberforce, Sierra Leone. World Bank/Erick Kaglan
Students at St Luke's Pre-primary School in Wilberforce, Sierra Leone.
Credit: World Bank/Erick Kaglan

This blog is based on the recent publication by UNICEF Africa, that was produced in partnership with the Learning for Wellbeing Foundation.

Does public social spending in Africa have less of an impact on building human capital than might be expected? There’s been a striking lack of data to answer this question despite recognition of the need to invest in human capital, until now.

Building on UNICEF Innocenti’s “Too Little Too Late,” a policy note from UNICEF and the Learning for Wellbeing Foundation fills the evidence gap on government spending on children by age.

A glaring imbalance is clear: public spending in Africa overwhelmingly goes to older children, neglecting the youngest children during their most critical developmental years. This imbalance—which is in stark contrast to spending patterns in high- and upper middle-income countries—undermines the very foundation needed to maximize the returns on investments in key sectors such as education, health and social protection.

If Africa is to optimize the impact of its social spending and effectively build human capital that can foster equitable growth, policy makers need to rethink how resources for children are distributed by age.

As advanced by the African Union’s Year of Education and in “Educate Africans Fit for the 21st Century,” investing in education is an essential part of achieving this human capital goal.

Unpacking Africa’s Skewed Spending

The policy note’s analysis of 26 African countries shows that on average, just 6.5% of social spending on children is directed toward those aged 0-5 years despite this age group representing about a third of the continent’s children. In contrast, 55% goes to children ages 12 to 17 (see Figure 1).

For every dollar spent in Africa on a 1-year-old, governments spend almost 16 times as much on a 15-year-old.

 

Fit for the Future: How a Rethink of the Human Capital Model is Needed in Africa to Optimise the Return on Social Spending Policy note, October 2024
Fit for the Future: How a Rethink of the Human Capital Model is Needed in Africa to Optimise the Return on Social Spending. Policy note, p.7, October 2024

This is in contrast to higher income countries (see figure 2 for countries in the G20) that allocate 27% of the same child-related social spending to those aged 0-5 years, with a notable peak of support (largely child grants) from pregnancy to age 2.

Fit for the Future: How a Rethink of the Human Capital Model is Needed in Africa to Optimise the Return on Social Spending Policy note, October 2024
Fit for the Future: How a Rethink of the Human Capital Model is Needed in Africa to Optimise the Return on Social Spending.
Policy note, p.8, October 2024

While investments in older children are essential, this spending pattern ignores a fundamental truth: investments in children in the later years are far less effective if they’re not built on a strong foundation established during early childhood. So, in terms of “bang for your buck,” neglecting the early years is inefficient.

Research shows that investments in early childhood (such as pre-primary education, childcare and young child grants) yield high returns by boosting children’s cognitive, physical and emotional development, with rates of return ranging from 7% to 13% and above (depending on the measure used).

Without these, children struggle to fully benefit from education or skills training when they’re older, leading to wasted resources and missed opportunities.

 

The benefits of investing in early childhood stem from reduced social costs (such as healthcare or remedial education) and increased economic productivity.

By prioritizing older children, current spending patterns in Africa fail to capitalize on this opportunity, locking families and nations into a cycle of inequality and inefficiency.

Without adequate investments in children’s holistic development, children are less likely to develop the foundational and 21st century skills needed to succeed in school and adapt to the needs of a quickly evolving global economy.

An inequitable starting line

Allocating social spending to children largely when they’re older is also inequitable. While children are more likely than adults to live in poverty in Africa (40% of children live in extreme poverty compared to 29% of adults), younger children are affected the worst: around two-thirds of children living in extreme poverty are under the age of 10.

This inequity in wellbeing is further compounded by inequity in public spending.

Public resources for education in Africa are often more likely to be directed toward secondary and tertiary education—sectors that typically benefit a smaller group of children who already receive more resources.

Governments in Africa spend around 2% of their education budgets on pre-primary education, while 20%, on average, goes to tertiary education. Additionally, 13 out of 40 governments with available data have been found to invest no resources in pre-primary education while tertiary education continues to be overprioritized.

For younger children left behind until they enter secondary school and beyond (assuming they continue their education), such education investments arrive too late to actually support their learning and development. As a result, Africa’s current pattern of social spending risks perpetuating systemic inequities, rather than addressing them.

For younger children left behind until they enter secondary school and beyond (assuming they continue their education), such education investments arrive too late to actually support their learning and development. As a result, Africa’s current pattern of social spending risks perpetuating systemic inequities, rather than addressing them.

Driving equitable financing for children in Africa: A call to action for policymakers

The imbalance in public spending in favor of older children is a structural inefficiency Africa cannot afford. By bulking spending late in a child’s life, governments undermine the very foundation on which futures depend.

Better balancing of social spending for children across ages is the smart thing to do, representing more efficient, effective and equitable use of limited resources.

Many African countries do not have a child grant in place, meaning new parents lack the necessary additional income to support their family at this vulnerable time. Likewise, spending on early childhood education is far below the recommended 10% of national education budgets in most countries in Africa.

Almost half of GPE partner countries (44) are in Africa and 45% have chosen early childhood education as part of their priority reform for their partnership compacts to transform their education systems.

In Sierra Leone and Malawi, fostering inclusive policy dialogue, promoting coordination across ministries and establishing national policies for early childhood development have been key to laying a foundation for human capital in the early years.

But still, a targeted shift to rebalance public spending and invest more equitably in the early years is needed. And there is the political will across Africa to advance national early childhood agendas, as seen at the Africa Foundational Learning Exchange (FLEX) conference in November 2024 where governments pledged to eliminate learning poverty by 2035.

GPE in collaboration with UNICEF remains committed to working with partner countries in Africa to ensure education financing for early childhood supports the implementation of integrated, multisectoral policies that take on a holistic lens to promote children’s development.

Our hope is that with the new information from the policy note, stakeholders in Africa can take a critical look at how spending is balanced, where policies and programs are missing for the youngest, and how to work gradually to plug the gaps to support children more efficiently and equitably, particularly the youngest who have the highest potential to break intergenerational cycles of poverty and inequality.

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