Developing countries spend more repaying foreign debt than on education, UN reveals

A school in Bolgatanga, Ghana. In sub-Saharan Africa, countries spent 3.6 times more on debt than education last year. Photograph: Unicef/Noorani View image in fullscreen A school in Bolgatanga, Ghana. In sub-Saharan Africa, countries spent 3.6 times more on debt than education last year. Photograph: Unicef/Noorani Developing countries spend more repaying foreign debt than on education, UN reveals Unesco report shows children lost out to servicing debt in 113 countries, with 18 spending five times more on loans Most developing countries spent less on education than they did repaying debt last year, according to the UN, at the same time as global aid to education is predicted to decline by up to 30%. More was spent on servicing foreign debt than on education in 113 developing countries in 2025, according to research by the UN’s culture and education agency, Unesco. In sub-Saharan Africa, countries spent 3.6 times more on debt than education . The situation is likely to be exacerbated by funding cuts, the agency warned. Low- and lower-middle-income countries have already lost 21% of the aid to education they were receiving in 2023 and could lose up to 30% by 2027. Some countries – including Afghanistan, Mali, Niger and Liberia – have already lost more than 40% in three years. Min Jeong Kim, director of Unesco’s education division, said: “Current approaches really keep the countries trapped in a cycle of austerity, underinvestment and stalled development. “This is really weakening countries’ stances on economic growth, eroding domestic revenue mobilisation and ultimately also diminishing their ability to handle their debt over time.” Eighteen of the most indebted countries spent five times the amount they did on education on debt – and up to 16 times more in the case of Sri Lanka . According to the UK-based campaign group Debt Justice, repayments by poorer countries hit a 35-year high last year , with 56 countries spending almost a fifth of their total revenue on servicing loans. Tim Jones, policy director at Debt Justice, said: “Countries’ debt payments have ballooned following a series of shocks from Covid, energy price and interest rate rises and climate disasters. “In the worst-affected [countries], this is leading to cuts in spending on essential services such as health and education.” View image in fullscreen Lack of funding for schools is disrupting children’s education. Photograph: Mulugeta Ayene/Unicef The situation has been made worse by aid cuts made by the US and Europe, which saw funding to education drop by $600m (£470m) in 2024 , the last recorded figures, and is expected to have fallen further in 2025. Overseas education project for women and girls axed by UK after two years Read more The combined impact of aid cuts and public spending being redirected to debt servicing has meant disruption to education systems, with schools often not receiving sufficient funds to operate and teachers not being paid. In the long term, there is concer