Financial independence in the African Union

Financial independence in the African Union

 It first started with the Union of African States, an early confederation that was established by Haile Selassie and Kwame Nkrumah in the sixties and then became the Organization of African Unity in 1963.

The African Union is in constant struggle to cope with the multifaceted social, economic and political problems that have become particularly worrisome over the last two decades.

The quest to find alternative, adequate and predictable funding for a fully independent African Union has been discussed. A ray of hope, however, comes in the form of the recent adoption of a bold declaration at the 27th AU summit engaging African states to tax imported products and build a common fund.

Between 2009 and 2010, 66,36% of the total AU budget was financed by Alegria, Egypt, Libya, Nigeria and South Africa. After 2010, the payments by the European Commission increased from 91 million euros to 330 million euros in 2015, of which almost 90% was for peace and security. Other major donors include the world bank, the United States, China and Turkey.

Collection of taxes was to be carried out in close collaboration with Member states. Despite the positive nature of the suggestions, the proposals posed worry about increasing the tax burden of citizens in Africa.

Current developmental matters in Africa are anchored on implementation of two key initiatives, Agenda 2063 and the Sustainable development goals 2030 agenda. These agendas rely on the ability of the African Union to mobilise financial ressources within the continent and include political proposals to welcome the black diaspora.

The serious issue of self sufficiency can only be attained by fighting corruption and ending tax evasion.

Source