Developing Countries Spend More on Debt Repayments Than Education, UN Says

Developing Countries Spend More on Debt Repayments Than Education, UN Says
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Most developing countries spent more on repaying foreign debt than on education in 2025, according to a new report by UNESCO.

The UN education and culture agency said 113 developing countries directed more funds toward servicing external debt than financing education. In sub-Saharan Africa, governments spent 3.6 times more on debt repayments than on education, while 18 highly indebted countries spent five times more on debt than schools. Sri Lanka spent up to 16 times more on debt servicing than education.

UNESCO warned that the crisis is being worsened by declining international aid. Low- and lower-middle-income countries have already lost 21 percent of the education aid they received in 2023, with losses expected to reach up to 30 percent by 2027. Afghanistan, Mali, Niger, and Liberia have each lost more than 40 percent of education aid over three years.

The agency said debt pressures and aid cuts are disrupting education systems, leaving schools underfunded and teachers unpaid.

Debt Justice said repayments by poorer countries reached a 35-year high last year, with 56 countries spending nearly one-fifth of government revenue on loan servicing.

UNESCO called for long-term debt relief arrangements that allow countries to continue funding public services, warning that underinvestment in education could weaken future economic growth and development.