The United Kingdom should take concrete steps to address the sovereign debt crisis across the Commonwealth ahead of its 2027 G20 presidency, the AIDS Healthcare Foundation (AHF) has said, warning that mounting debt burdens are limiting governments’ ability to invest in health, education and social protection.
The call comes ahead of the Commonwealth Heads of Government Meeting (CHOGM), scheduled to take place in Antigua and Barbuda in November. The meeting will be held under the theme “Accelerating Partnerships and Investment for a Prosperous Commonwealth”.
AHF argues that the financial conditions facing several member states contrast sharply with that ambition. According to figures cited by the organisation, one in three Commonwealth countries is in debt distress, while a majority of global debt contracts are governed by UK law.
The wider debt burden is also affecting public spending. Globally, about 3.4 billion people live in countries where governments spend more on debt servicing than on health and education combined. Borrowing costs for these countries can be two to 10 times higher than those faced by wealthier economies.
Within the Commonwealth, 21 countries spend at least 14% of government revenue on debt repayments, AHF said.
UK Legal System in Focus
AHF President Michael Weinstein said the UK had an opportunity to use its position in the international financial system to support reforms benefiting heavily indebted developing countries.
“The global debt crisis is upheld by a financial architecture that is inequitable, extractive, and rooted in colonial legacy,” Weinstein said.
He called for measures to protect borrowing countries from private creditors and for legislation to curb what AHF describes as predatory lending practices that can complicate debt restructuring and relief.
The organisation’s position places particular emphasis on the role of UK law in international sovereign lending. Because many debt agreements are governed under English law, changes to the legal framework could potentially influence how creditors and debtor governments negotiate repayments and restructuring.
The issue is gaining significance as governments across the Global South face pressure from higher borrowing costs, fiscal constraints and competing demands for public investment.
Aid Cuts Add to Fiscal Pressure
AHF’s intervention also follows the UK Foreign, Commonwealth and Development Office’s announcement of cuts to aid funding for some countries. The organisation cited estimates that assistance to countries including Malawi and Mozambique could be reduced by as much as 90%.
Both countries are already facing significant fiscal pressures, AHF said, potentially limiting their ability to maintain social protection and other public services.
Dr Penninah Iutung, executive vice president of AHF, described the debt crisis as increasingly a development and security issue rather than solely a financial one.
“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,” Iutung said.
She urged governments in the Global South to coordinate their positions on debt reform and called for the issue to receive a level of international attention comparable with major public health emergencies.
Push for New Debt Mechanisms
AHF and partner organisations launched the Freedom from Debt campaign in June, outlining several proposals aimed at changing how sovereign debt is negotiated and managed.
One proposal calls for faster implementation of a Borrowers’ Forum to give developing countries a stronger collective negotiating position. The campaign also advocates automatic, interest-free pauses on debt repayments when countries face major public health or climate emergencies.
A third proposal is a 1% global AI Solidarity Levy on capital investments and revenues of leading AI companies, with the proceeds directed towards debt relief and essential public goods in developing countries.
The proposals come as governments and international institutions debate how existing debt frameworks can respond to a changing global economy, rising climate-related costs and increased demand for public investment.
For the UK, the issue carries additional significance because of its upcoming G20 presidency. The group brings together major advanced and emerging economies and provides a platform for discussions on global financial stability, development and international economic policy.
AHF is urging London to use that position, alongside its influence within the Commonwealth and its legal role in sovereign debt markets, to push for structural changes.
The organisation said the objective should be to create conditions in which heavily indebted countries can redirect resources towards healthcare, education, climate resilience and economic development.
AHF, which operates HIV/AIDS healthcare and advocacy programmes in 50 countries, said the debt crisis ultimately affects governments’ capacity to deliver essential services. Its campaign places debt reform alongside broader questions of development, public health and economic sovereignty.
