The Peace Fund is established under Art 21 of the protocol establishing the Peace and Security Council of the AU to finance the AU’s peace and security operations.
The Peace fund covers operational activities: Mediation and Preventive Diplomacy, Institutional Capacity and Peace Support Operations.
The July 2016 Assembly decided that the Peace Fund would be endowed with $325m in 2017, rising to a total of $400m by 2020 from the 0.2% levy. The endowment represents a maximum amount that will be replenished annually as needed.
The Peace Fund covers more than just the peace support operations. This endowment will enable the AU to fully finance mediation and preventive diplomacy activities, institutional readiness and capacity, maintain a crisis reserve facility as well as meet its commitment to finance 25% of its peace operations budget.