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A recent report by UNESCO underscores a troubling reality for developing nations, revealing that considerable resources have been diverted from education to service foreign debt. The findings are particularly stark in sub-Saharan Africa, where countries are spending over three times as much on debt repayments compared to educational investment. This trend not only jeopardises children’s futures but also threatens the long-term economic viability of these nations.
Debt Over Education: A Growing Concern
In 2025, research conducted by UNESCO found that more than 113 developing countries allocated more funds to repaying foreign debt than to educating their young populations. In sub-Saharan Africa specifically, the ratio stood at an alarming 3.6 to 1. The report highlights that 18 of the most indebted nations allocated five times their education budgets to debt repayments, with Sri Lanka exhibiting an even more severe discrepancy, spending up to 16 times more on servicing loans.
The implications of this financial imbalance are profound. Min Jeong Kim, who leads UNESCO’s education division, emphasised the cyclical nature of this issue, stating that current fiscal strategies entrap nations in a cycle of austerity and underinvestment. “This is really weakening countries’ stances on economic growth, eroding domestic revenue mobilisation, and ultimately diminishing their ability to handle their debt over time,” Kim remarked.
Aid Cuts Compound the Crisis
This alarming trend is set against the backdrop of significant cuts to global education aid, which are projected to decline by as much as 30% by 2027. Reports indicate that low- and lower-middle-income countries have already experienced a 21% drop in educational aid since 2023. Countries like Afghanistan, Mali, Niger, and Liberia have suffered even more severe reductions, with losses exceeding 40% over a three-year period.
Tim Jones, policy director at Debt Justice, pointed to a range of economic shocks—ranging from the COVID-19 pandemic to rising energy prices and interest rates—as contributing factors to the ballooning debt payments of poorer nations. “In the worst-affected countries, this is leading to cuts in spending on essential services such as health and education,” he stated, adding that last year saw debt repayments by these countries reach a 35-year peak.
The Impact on Education Systems
The erosion of educational funding is having immediate repercussions on schooling systems across affected nations. Many schools are struggling to operate due to insufficient funding, leading to disruptions in educational services and, in many cases, unpaid teachers. This lack of investment in education is not merely an immediate crisis; it poses long-term threats to economic development and the capacity of these nations to manage their debt effectively in the future.
UNESCO has called for a re-evaluation of how debt relief is structured, advocating for long-term solutions that allow countries to sustain public services while managing their debt obligations. The conversation around debt relief must also incorporate the interests of private lenders, who can hinder progress for their own profit motives, as seen in recent negotiations involving Ethiopia.
A Call for Change in Debt Relief Policies
As the UK prepares to assume the presidency of the G20 in 2027, there is a burgeoning call for reforms in the debt-relief process. Advocates argue for the necessity of increasing debt cancellation and expediting the relief process, with an emphasis on ensuring that private creditors do not obstruct efforts for fairer agreements. Jones highlighted the importance of incorporating these changes into English law, thereby safeguarding against the disruptions caused by private financial interests.
Why it Matters
The findings of this UNESCO report illuminate a critical crossroads for developing nations, where the prioritisation of debt repayment over education could have catastrophic implications for future generations. As educational systems falter under the weight of financial obligations, the long-term economic stability of these countries hangs in the balance. The need for urgent reform in how debt relief is approached is not just a financial concern; it is a moral imperative that will determine the future of millions of children and the prosperity of entire nations.
