0.2% Import Levy Proposed to Boost African Union Financial Independence

African Union funding reform moved closer to concrete implementation on Friday as Kenyan officials endorsed a proposal to reduce the continental body’s reliance on external donors.

Prime Cabinet Secretary Musalia Mudavadi and Treasury Cabinet Secretary John Mbadi backed the financing framework during an Extraordinary Session of the African Union Executive Council and Ministers of Finance in Accra, Ghana. Mudavadi, representing President William Ruto in his capacity as the AU Champion for Institutional Reform, endorsed Option C as a path toward financial sustainability.

The continental body faces declining predictability in foreign aid alongside rising public debt and global economic uncertainty. Mudavadi told the assembly that the Union’s reliance on external partners undermines its ability to independently implement decisions and pursue the long-term ambitions outlined in Agenda 2063.

“Africa must have the means to finance the Africa it envisions,” Mudavadi said.

Kenya’s position aligns with prior continental commitments, including Johannesburg Decision 578 and Kigali Decision 605, which sought to increase member state contributions. Mudavadi acknowledged that previous financing targets remain largely unmet, leaving the organization dependent on external funding partners.

Under Option C, Kenya supports a model built on four pillars: prioritizing high-impact programs, consolidating budget planning, strengthening domestic resource mobilization, and improving institutional efficiency.

“Kenya maintains that the African Union must concentrate its resources on programmes that deliver measurable benefits to African citizens,” Mudavadi said.

The framework proposes a 0.2 per cent levy on eligible imports to provide the AU with a predictable funding source. It also establishes a US$1 billion African Union Peace Fund endowment with regular replenishment mechanisms to finance security operations.

Mudavadi cautioned that increased contributions must be paired with transparency, accountability, and prudent financial management. The Kenyan delegation also backed a structured partnership between the African Union and the African Association of Multilateral Financial Institutions to mobilize capital within the continent.

The deliberations in Accra are expected to produce recommendations for consideration by Heads of State and Government during the 40th Ordinary Session of the AU Assembly in January 2027.

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Omar El Sayed - World Editor

Omar El Sayed is Archyde’s World Editor, focused on international affairs, diplomacy, conflict, and cross-border political developments. He brings a global newsroom perspective to complex events and helps readers understand how regional stories connect to wider geopolitical shifts.

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