Africa moves a step closer to self-funding

Mabasa Sasa in Addis Ababa, Ethiopia
President Mugabe’s long-held dream of a fully self-financing African Union moved a step closer to reality last Friday as the deputy chair of the African Commission, Dr Erastus Mwencha, announced moves to fund the organisation completely from internal resources.

The AU’s operations are presently 70 percent funded by non-African donors.

President Mugabe has on several occasions decried this state of affairs, saying it compromises Africa’s ability to craft and pursue its own agenda.

Zimbabwe’s Head of State and Government is in Addis Ababa, Ethiopia for the AU’s 28th Ordinary Summit. His delegation comprises Foreign Affairs Minister Simbarashe Mumbengegwi and other senior officials.

The Summit proper starts today, and it comes six months after African leaders agreed in Rwanda for Africa to fund its own operations.

Dr Mwencha said the funds would come from a duty to be levied on all imports into Africa.

“The decision directs all African Union member states to implement a 0,2 percent levy on eligible imports to finance the African Union,” said Dr Mwencha.

He said this would raise at least $1,5 billion annually, which is already more than the body’s yearly budget. Dr Mwencha said, “The decision will enter into operation for each member State from January 2017,” adding the method of collecting money would ease pressure on countries.

This is because at present member states pay dues to the AU directly from their national treasuries, but now a new tax would mean those seeking to retail in Africa will finance operations.

Kenya, Rwanda, Chad and Ethiopia and the Republic of Congo have already implemented the levy.

At this Summit, African Heads of State and Government will also deliberate proposals on rationalisation of AU activities to enhance efficiency so as to improve service delivery to the continent’s citizens.

The morning session today will see the handover of the Hashim Mbita historical volumes to the AU and the announcement of election results for the position of AU Commission Chair.

South Africa’s Dr Nkosazana Dlamini-Zuma is stepping down as AU Commission Chair after four years at the helm, and five candidates are vying for the post.