Africa Union step closer to cut reliance on donors

Kigali - The Africa Union adopted a new funding formula that will help the bloc generate $1.2bn from next year and cut reliance on donors who currently provide about three-quarters of funding for its programmes.

The AU’s heads of state decided this weekend that 0.2% of a country’s eligible imports will go toward funding the AU Commission’s programmes, Rwandan Finance Minister Claver Gatete told reporters in the country’s capital, Kigali, where the AU Summit is taking place.

Eligible imports exclude products such as medicines, fertilisers and baby food, he said. The money will be collected by local revenue authorities and held in central bank accounts, where it will be automatically disbursed from.

The 54 member states last year resolved to find a way to fund three-quarters of its programmes and 25% of its peace-support missions itself. Donors include the European Commission, World Bank, developed countries and other partners. The commission’s budget this year is $447m, Gatete said.

“We should not be a burden to the donor communities, we should be able to finance our own activities, and this is the beginning,” Gatete said.

States will be punished for violating their obligations, he said, without providing more information.