Foundation Urges UK To Lead Action On Commonwealth Debt Crisis

The AIDS Healthcare Foundation (AHF) has urged the United Kingdom to take concrete steps to address the sovereign debt crisis ahead of its 2027 G20 presidency and the Commonwealth Heads of Government Meeting scheduled for November in Antigua and Barbuda.

AHF made the call in a statement issued in Abuja, warning that debt distress was undermining development, public health and economic stability across several Commonwealth countries.

The foundation noted that one in three Commonwealth countries was in debt distress, while a majority of global debt contracts are governed by UK law.

It also cited global figures indicating that 3.4 billion people live in countries spending more on debt servicing than on health and education combined. According to the organisation, 21 Commonwealth countries spend at least 14 per cent of government revenue on debt repayments, while borrowing costs for developing countries are between two and 10 times higher than those of wealthier nations.

AHF President, Michael Weinstein, said the UK had a unique opportunity to promote reforms capable of addressing what he described as an inequitable and extractive global financial system.

“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 UK to protect borrowing nations in the Global South from private creditors who, according to him, exploit the British legal system to enforce repayments.

Weinstein also called for legislation to curb predatory lending practices and prevent creditors from undermining debt-relief efforts.

The call followed an announcement by the UK Foreign, Commonwealth and Development Office on cuts of up to 90 per cent in aid funding to some countries, including Malawi and Mozambique, which AHF said were already facing severe fiscal pressures.

AHF Executive Vice President, Dr Penninah Iutung, said the debt crisis should no longer be treated solely as a financial matter.

“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,” she said.

Iutung also urged countries in the Global South to strengthen their collective voice in the campaign for debt reform.

AHF said it and its partners launched the Freedom from Debt campaign in June to press global leaders to establish a Borrowers’ Forum, introduce automatic interest-free debt pauses during public health or climate crises, and impose a one per cent global AI solidarity levy on leading artificial intelligence companies to support debt relief and essential public goods.

The foundation said urgent action was needed to ensure that Commonwealth countries could pursue development, prosperity and peace without being trapped in unsustainable debt cycles.