The AIDS Healthcare Foundation (AHF) has called on the United Kingdom to take concrete steps towards addressing the growing sovereign debt crisis in developing countries, ahead of its assumption of the G20 Presidency in 2027.
The appeal comes as Commonwealth leaders prepare for the Commonwealth Heads of Government Meeting (CHOGM) scheduled to take place in Antigua and Barbuda in November, where discussions are expected to focus on partnerships, investment and development across member states.
According to AHF, the economic realities confronting many Commonwealth countries raise serious questions about the prospects for sustainable development, with one in three Commonwealth nations reportedly facing debt distress.
The organisation also noted that a significant proportion of international debt contracts are governed by UK law, giving Britain an important role in shaping reforms that could ease the financial pressure on indebted countries.
Globally, AHF said, about 3.4 billion people live in countries where debt servicing costs exceed combined spending on health and education. Developing nations also face borrowing costs estimated to be between two and ten times higher than those of wealthier countries.
Within the Commonwealth, 21 countries reportedly allocate at least 14 per cent of government revenue to servicing debt.
AHF President, Michael Weinstein, said the situation reflects deeper structural inequalities in the global financial system, which he described as being influenced by colonial legacies and practices that disadvantage countries in the Global South.
“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,” Weinstein said.
He urged the British government to protect borrowing countries from what he described as aggressive practices by private creditors, including through legislation capable of curbing predatory lending and preventing creditors from frustrating international debt relief initiatives.
The call also follows concerns over proposed reductions in UK aid to some developing countries, including Malawi and Mozambique, both of which are already grappling with significant fiscal pressures.
AHF Executive Vice President, Dr Penninah Iutung, warned that the debt burden should no longer be viewed solely as an economic concern, arguing that its consequences extend to security, development and public welfare.
She said Commonwealth countries could not achieve shared prosperity while many of their members remained trapped in cycles of debt and austerity.
Iutung further called for greater solidarity among countries of the Global South in pushing for reforms to the international financial system.
AHF and its partners launched the Freedom from Debt campaign in June as part of efforts to build international pressure for changes to the global debt architecture.
The campaign is advocating for the implementation of a Borrowers’ Forum to strengthen the negotiating position of developing countries, automatic interest-free suspension of debt repayments when countries face major public health or climate emergencies, and the introduction of a one per cent global AI Solidarity Levy on leading artificial intelligence companies.
The proposed levy, according to the campaign, would generate resources for debt relief and the provision of essential public goods in developing countries.
AHF said the UK’s forthcoming leadership of the G20 presents an opportunity for the country to move beyond statements of solidarity and champion practical reforms capable of addressing the structural causes of the debt crisis.
The organisation maintained that meaningful action on sovereign debt would be critical to enabling developing countries to invest more effectively in healthcare, education, social protection and long-term development.