India, June 17 -- Developing countries could save nearly $500bn a year if they borrowed at the same interest rates as advanced economies, UNCTAD says.

The UN agency says high borrowing costs are shrinking fiscal space and limiting investment in health, education, infrastructure and clean energy.

Between 2014 and 2024, government interest payments in developing countries rose by 102%, while revenues increased by only 39%.

Africa received just 10% of external financial inflows to developing countries between 2014 and 2024, despite accounting for 22% of the developing world's population.

UNCTAD says lower borrowing costs could finance 375,000 schools, 1.3 million primary healthcare centres or 923GW of solar power capacity.

Developing co...