Report: Financing the Union: Towards the financial autonomy of the African Union

1. The AU needs adequate, reliable and predictable resources to implement its programmes so as to achieve its development and integration goals. Successive Summits of the AU have since 2015, taken financial reform decisions, to ensure there is sound and predictable finances to address the historical challenges the African Union has faced. These are;

a) Unpredictability and volatility of its revenues;
b) Dependence on external partners;
c) Reliance on a few Member States;
d) The need to demonstrate the value for money and probity, and
e) The growing budget.

2. The adopted financial reform decisions were, therefore, intended to achieve the following key objectives:

• Timely, adequate, reliable and predictable payment of all Member State assessed contributions and Partner contributions to the African Union;
• Financial autonomy and reduced dependence on external sources;
• Equitable burden-sharing of the Union’s budget and reduced dependence on a few countries;
• Improved budget, financial oversight and governance to achieve high fiduciary standards, value for money and probity.
• Predictable and sustainable financing of the AU’s peace operations through the revitalization of the AU Peace Fund and the pursuit of strategic partnerships.

3. This report provides an update on progress made so far, on all the objectives above, in line with Executive Council and the Assembly Decisions on “Financing of the Union” quoted in this report.