What would old age poverty mean to the African governments if not addressed?

This was an important question 10 years ago and is equally important now and in the future. At a time like this where we are experiencing some of the biggest monsters in the history of humankind: inflation, debt crisis, the looming energy crisis, and recession, African governments must worry about old age poverty – it is going to be the biggest MONSTER! According to a 2019 UN report on population ageing, Africa will see a threefold increased number of adults aged 65 or over by 2050 (from 32 million to 101 million). Fiscal expenditure is likely to grow.

Negative impacts of old age poverty.

It can lead to increased strain on government welfare programs and healthcare systems as older adults may not have the financial resources to support themselves. For instance, in 2007, the Kenyan government started a program “Older Persons Cash Transfer (OPCT)" whose objective is to provide regular and predictable cash transfers to poor and vulnerable older persons aged 65 years and above in identified deserving households. The program transfers Kes 2,000 per household per month delivered every two months through an appointed payment agent. I have seen them queue to receive these monies and my heart breaks when they queue for long – I hope someday we will fix the payments and make them receive in the comfort of their homes. Now, the glaring concern is whether that is enough to meet their needs. Even still, would we be able to sustain millions of Kenyans who will be suffering from old age poverty? It is projected that the population of old age people will rise to 2.5 million in the next 10 years.?

It can also lead to increased poverty and hardship for older adults, who may be more vulnerable to health issues and less stable to work to support themselves. Their immune system becomes wicker with age, making it harder for their bodies to fight off infections and illness. They may also have underlying health conditions such as diabetes or heart disease that makes them more susceptible to certain illness. Even though Kenya as a country has made tremendous growth in improving healthcare infrastructure, it is imperative to say that we still have a long way to go in providing adequate care to the population, particularly to those living in rural and remote areas. The same applies to other African countries.

Additionally, it can lead to a decline in the overall well-being of society, as older adults may not be able to contribute to their communities and may become isolated. This in turn contributes to a decline in the overall economic development of the country such:

1. Reduced workforce participation: As we grow old, our ability to work decreases. Therefore, older adults who are living in poverty may not stay living in poverty may not have the resources to stay in the workforce, leading to a decline in the size and productivity of the workforce.
2. Increased dependency on social welfare programs: older adults living in poverty may rely heavily on government-funded social welfare programs i.e., Kenya’s social program for old people as I mentioned earlier is not sustainable. It places a significant strain on government finances, diverting resources away from other economic development initiatives.
3. Reduced consumer spending: An old grandfather living in poverty in Bungoma, or whichever part of the continent may not have the resources to participate in the consumer economy. He doesn`t have disposable income. When we think about this at scale, we see a significant reduction in consumer spending and economic growth.
4. Reduced savings and investments: I had a chance to interact with a good number of old people and as sad as it is, the story is not good. Neither can they work. Saving and investing to them does not make sense as they have come of age and do not see the need to. Now paint the pictures nationally, or across the continent. The decline in the overall savings and investment rate reduces capital available for economic growth.?
5. Increased healthcare costs/spending: We have all experienced and seen this. Older adults may be more likely to experience health problems due to the factors I pointed out earlier. Though in Africa, older adults are often considered important members of our communities and thus we still have a strong tradition of intergenerational and community support. Whereas this is slowly disintegrating, the government at all times aging become more vulnerable and This can lead to increased healthcare costs for the government and increase overall economic development.
6. Old age poverty can lead to increased isolation: When people are broke, they tend to isolate themselves and might start engaging in bad activities like theft. This makes it harder for people to work together towards common goals.

In conclusion, most African governments may be unable to afford the fiscal and social cost of a meaningful tax-funded social pension. They need to prioritize and promote pension saving. Otherwise, a big crisis in the future is looming.