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Africa makes strides toward financial independence – AU Official

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Africa continues to make great strides in its quest for financial independence and sustainability, to reaffirm the continent’s renaissance and stop over-reliance on development partners, African Union deputy chairperson Kwesi Quartey has said.

In a press briefing on Saturday, Quartey said the momentum in the implementation of the 0.2 percent levy to finance the Union’s budget continues to gain traction.

Ten member states including Ethiopia, Kenya, Rwanda, Chad, Ghana and Republic of Congo, among others, are at various stages of implementing the decision on financing of the  AU.

“2017 is a transition year to allow all our member states to put in place appropriate instruments, for the full implementation of the decision and we are optimistic that from 2018 on, all our 55 states will oversee the full, consistent and timely implementation of this decision.”

He added: “Our continent remains vulnerable to internal and external shocks, which call us to build a resilient financial regime that is able to effectively respond to such uncertainties”.

Quartey noted that a well-functioning financial regime is essential to foster longterm economic growth.

The heads of state and government adopted a decision in Kigali last year to finance 100 percent of the operational budget of the AU.

The decision is also seeks to finance 75 percent of the programme budget, where the flagship programmes are covered such as CFTA and other key projects.

Also 25 percent of the contributions will go to finance the Peace Fund to cover operational activities such as mediation and preventive diplomacy, institutional capacity and peace support operations.

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