The African Union (AU) has since 2005 been discussing proposals for ‘alternative sources of financing’. This issue found momentum again at the 17th Ordinary Summit of the AU in June 2011 which resulted in a decision to expedite the setting up of a High Level Panel on Alternative Sources of Financing the Union (Decision/Assembly/AU/Dec.364 (XVII)). This Panel, also known as the Obasanjo Panel submitted a progress report to the Summit in July 2012 outlining proposals for increasing resources from within Africa. These proposals were supposed to be deliberated at the Ministerial level in the second half of 2012 in order for a decision to be made at the Summit. The Ministerial retreat did not take place; the discussion on financing proposals is now scheduled to take place at the end of March. In addition to proposals in the Obasanjo Panel report, the January 2014 draft of the Agenda 2063 Framework document also includes proposals for financing the AU.
The need for alternative financing arrangements is based on the AU’s own analysis that ‘the current system of statutory contributions, which had been in place since the OAU days, has been deemed to no longer be adequate to meet the growing financing needs of the Union’ with most of the programmes being heavily dependent on partners (Obasanjo report).
Presentation to the Permanent Committee on Monetary and Financial Affairs, Pan African Parliament, 7 March 2014
Presentation: Financing Africa’s Integration and Development
Report on the Alternative Sources of Funding the African Union
Progress Report of the High Level Panel on Alternative Sources of Financing the African Union, Chaired by H.E. Olusegun Obasanjo, Former President of Nigeria, Consultations with Member States
Rapport Du Panel De Haut Niveau Sur Les Sources Alternatives De Financement De L’union Africaine, Dirige Par L’ancien President Du Nigeria, Olusegun Obasanjo
Statement of Member State Contributions 1
Statement of Member State Contributions 2