With the UK set to hold the G20 Presidency in 2027, and ahead of the Commonwealth Heads of Government (CHOGM) meeting in Antigua and Barbuda this November, the AIDS Healthcare Foundation (AHF), has called on the UK to urgently lead with concrete action, not rhetoric, in addressing the sovereign debt crisis.
In a statement by Mr
Steve Aborisade, AHF’s Senior Advocacy and Marketing Manager, on Tuesday in Lokoja, AHF urged UK to urgently lead with concrete action, not rhetoric, in addressing the sovereign debt crisis.
While CHOGM will convene under the theme of ‘Accelerating Partnerships and Investment for a Prosperous Commonwealth,’ the realities tell a different story: one in three Commonwealth countries is in debt distress, with a majority of the global debt contracts overseen by UK law.
Globally, 3.4 billion people live in countries that spend more on debt servicing than on health and education combined. At the same time, these countries face borrowing costs that are two to ten times higher than those of wealthier nations.
Across the Commonwealth, twenty-one countries spend at least 14% of government revenue on debt repayments.
“The global debt crisis is upheld by a financial architecture that is inequitable, extractive, and rooted in colonial legacy.
“The UK has a very unique opportunity to demonstrate honest leadership in championing systemic reforms that ensure members of the Commonwealth can achieve genuine prosperity.
“It must protect the interests of borrowing nations in the Global South against private creditors who weaponize its legal system to force repayments.
“This includes enforcing legislation that curbs predatory lending practices and prevents creditors from undermining debt relief efforts,” says Michael Weinstein, AHF President.
This call for concrete leadership also comes on the heels of the Foreign Commonwealth and Development Office’s announcement to slash UK Aid funding by up to 90% to some countries, including Malawi and Mozambique, which already face severe fiscal squeeze preventing them from investing in social protection measures.
“We cannot say we are a Commonwealth of Nations when many member states are trapped in a debt cycle that impoverishes them and destabilizes their economies.
“The debt crisis is no longer a financial issue, but a security and development issue.
“We demand that it is treated with the same urgency as any pandemic, and the Global South must also unite to sustain the push for debt reform, drawing on the ideals of the forefathers of independence and anti-colonial movements,” says Dr. Penninah Iutung, AHF Executive Vice President.
In June, AHF and partners launched the Freedom from Debt campaign, which calls on global leaders to:
Accelerate the implementation of the Borrowers’ Forum to unify the Global South’s voice and increase its negotiating power.
Mandate automatic, interest-free debt pauses in all lending agreements when countries face public health or climate crises.
Call for a 1% global AI Solidarity Levy on leading AI firms’ capital investments and revenues to fund debt relief and provide essential public goods for the Global South.
Now more than ever, bold action is needed to fix this unjust system, ensure all nations have the opportunity to advance progress, prosperity, and peace, and the UK must lead this charge.
