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Remarks by H.E Amb Selma Malika Haddadi, AUC Deputy Chairperson, at the Joint sitting of the PRC Subcommittee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters (GSCBFAM) and the Technical Committee of Finance (F15)

Remarks by H.E Amb Selma Malika Haddadi, AUC Deputy Chairperson, at the Joint sitting of the PRC Subcommittee on General Supervision and Coordination on Budgetary, Financial and Administrative Matters (GSCBFAM) and the Technical Committee of Finance (F15)

May 19, 2025

Excellency Chairpersons of the PRC Subcommittees on General Supervision, and Coordination on Budgetary, Financial and Administrative Matters, Ambassador George Orina,
Excellency the Chairperson of the PRC Subcommittee on Programmes and Conferences, Ambassador Ana Nemba Uaiene,
Excellencies Ambassadors and Distinguished Representatives of Member States,
Esteemed Experts of the Committee of Fifteen Ministers of Finance (F15),
Colleagues,
Ladies and Gentlemen,

I am pleased and honored to be with you this morning, though virtually, for the opening of your Joint Sitting Meeting to discuss the 2026 Budget of our Union.

This is indeed a critical process for the AUC, AU Organs and the Member States to work together towards the proper functioning of our Union and for the advancement of its mandates.

Today, the Joint Sitting meets at a critical juncture as the African Union is fully engaged in the implementation of the Second Ten-Year Implementation Plan (2024–2033) of Agenda 2063—our collective blueprint for a peaceful, prosperous, and integrated Africa.

This also coincides with the assumption of office by the new leadership of the Commission, who sets out a clear vision to strengthen governance and democracy, enhance institutional capacity, promote peace and security, and stimulate economic growth, development and integration across the continent.

Moreover, the new leadership is committed to sound management through accountability, transparency and efficiency in delivering results, as well as in ensuring the effective implementation of decisions, rules and regulations approved by policy organs of the Union.

Excellencies,
As you recall, over the past five years, the AU’s approved budget has experienced a negative growth rate of 6% despite the expansion of AU’s institutions and mandates. Although Member State contributions have been capped at US$250 million since 2019, the actual assessed contributions have consistently fallen short of reaching this ceiling. This decline in the approved budget has constrained the Union’s capacity in several critical areas. Allow me to mention some of them:

● It has limited the recruitment of essential staff in accordance with the approved staff structure of the Commission and AU Organs and delayed the review of staff salaries and adjustment, in line with the SRR, as adopted by Member States.

● As presented during the Joint Sitting of the Subcommittee of General Supervision and Coordination and the Committee of Experts of F15 last week, key renovation and maintenance activities for AU properties and assets, some of which were built in the 19th century, have been deferred or delayed. This has compromised the structural functionality of AU infrastructure and poses institutional and operational risks while proving to be budget consuming.

● Furthermore, the limited budget has even heavily impacted on the effective implementation of applicable security and safety standards, AU security policies, including physical security, information and personnel security, thus potentially involving the responsibility of the Union.

● Statutory meetings of AU Organs have also been adversely affected by the austerity measures which directly impact on the implementation of their mandates.

● Last but not least, the ongoing SACA process has further strained our delivery and negatively impacted the staff morale, the most critical resource of our Union.

At the same time, we are fully aware of the challenges faced by Member States in the aftermath of the COVID 19 Pandemic as well as the ongoing pressures on national budgets caused by geopolitical tensions and geoeconomic instability.

However, maintaining the status quo is limiting the capacity of the Commission and AU Organs to fulfill their mandates and effectively implement decisions, policies and rules adopted by Member States.

This situation also limits our ability to achieve the strategic objectives and aspirations of Agenda 2063 and to realize the Union’s long-term vision of the Africa we want. Throughout recent years, this situation has resulted in an exaggerated reliance on partner’s funds to implement our own programs, thus impacting on our independence and sovereignty.

Additionally, if mechanically maintained, the ceiling will undoubtedly impact the new leadership’s capacity to implement their strategic vision for the Union.

Therefore, the 2026 budget retreat presents a critical opportunity to all of us to have an in depth discussion and to take bold and coordinated collective actions.

For instance, it is proposed to consider opting for a phased approach to incrementally increase budget allocations each year, starting from the 2026 budget, thereby minimizing the impact on national treasuries while gradually strengthening the Union’s institutional capacity and programs delivery.

Let us choose proposing solutions and be forward looking, than repeating the same challenging issues that have been identified before. Tey are real, but difficult discussions are better to engage now whilst, we as a new leadership are beginning, than later when we have limited time to resolve issues. In that way, all of us have an opportunity to implement, monitor and review our collective decisions, if this is deemed appropriate.

Excellencies, Distinguished Representative of Member States,
The proposed 2026 budget, amounting to US$814 million, reflects a 34% increase from 2025. It is a necessary adjustment to meet the expanded mandates entrusted to our Union by the Assembly and Executive Council.

This budgetary expansion is a direct response to the establishment of new institutions—such as AIMEC, AfSA, and the African Humanitarian Agency—as well as critical initiatives, including support for AUSSOM, the G20 Coordination Unit, and the Theme of the Year 2026.

As an example, there is a budgetary increase of 336% for peace support operations as a result of transition of ATMIS into African Union Support and Stabilization Mission in Somalia (AUSSOM). Similarly, there is an upward adjustment of 3% to address inflation-related utility costs and salary step. A provision was proposed for ongoing salary review outcomes taking the least costed scenario.

Before presenting this draft budget, the Commission had developed two other scenarios to cater for the immediate implementation of several pressing Policy organs decisions. Both scenarios represented an excessive increase of the budget (approximately 100 million USD and 50 Million USD respectively). For obvious reasons, these scenarios were not considered for presentation to Member States.

The 2026 Budget has been meticulously crafted, adhering to the Nine Golden Rules and grounded in principles of austerity and fiscal discipline. Yet, discipline alone cannot drive transformation. We must also summon the political will to honor and elevate our financial commitments.

Excellencies,
Regarding the governance and accountability of our limited resources from our Member States and Partners, I would like to assure you of the leadership unwavering determination and dedication to achieving results.

The leadership is also fully committed to strengthen transparency, professionalism, and a focus on delivery of meaningful impact, while strictly adhering to the applicable rules and standards, as necessary pre-requisites for building trust and ensuring efficiency.

Furthermore, the leadership is committed to rationalization, eliminating duplications, and fostering collaboration across Departments, Organs and Offices, and working not in silos but in synergy to multiply results and unlock the full potential of our Union. This will require genuine commitment from all of us.

Excellencies,
I Therefore stand, today, before you not merely to present budgetary figures but to issue a resolute call to action. Africa’s strategic ambitions must be matched by predictable and adequate financing. Our flagship projects, peace operations, development programs, and initiatives for women and youth cannot remain subject to the volatility of external support. Africa’s priorities must be funded by Africa. While we deeply value our partners, leadership must begin at home.

Nor can our operational costs be capped at the expenses of our ability to deliver on your decisions.

Let this joint sitting be marked by a genuine conversation translating our collective resolve and work to:

1. considerably reduce, and ideally close, the domestic financing gap with a view to reaching financial independence, in line with our Johannesburg decision on financing the Union,

2. increase the budget ceilings so as to be able to deliver, and

3. Equip the African Union with the resources required to deliver for its people.

May history remember us as the leaders who embraced difficult decisions, prioritized sustainability over short-term convenience, and stood firm in the conviction that Africa’s destiny must be shaped—and financed—by Africans.

I thank you and wish you productive and impactful deliberations.