African countries are characterized by extreme poverty, underdeveloped educational institutions and die health conditions. This book aims to test whether public expenditure on education and health have been effective in reducing poverty in African countries. To get reasonable results the study uses both human and income poverty measures: Human Poverty Index, Percentage of population living below the International Poverty line. Data of 42 African countries from 2002-2007 are used for poverty estimations. Using panel data techniques,the study tests Fixed effect and Random Effect models, and concludes that spending in education and health do contribute in poverty reduction.It is also concluded that governance indicators have significant impact on poverty reduction