African Union’s plan to self-finance seems to have run into trouble after
members failed to agree on the proposal to levy tax on imports to fund the AU
Commission’s activities.
This was one of the proposals by current AU chairperson, Rwandan President
Paul Kagame, when he took over the reins of the continental body in January.
At last week’s Summit in Nouakchott, Mauritania, attended by only 22 of the
55 heads of state, and government representatives, no substantial progress was
reported on the institutional reforms at the Union.
“There was some disagreement among members on President Kagame’s proposal,
with countries failing to agree on the application of 0.2 per cent levy on
eligible imports in order to fund the Union,” said a source who attended the
deliberations both at the ministerial and Summit levels.
An extraordinary summit, whose main focus will be AU reforms, is scheduled
for mid-November, before Egyptian President Abdel Fattah al-Sisi assumes the
chairmanship early next year.
The summit is expected to address issues to do with separation of powers
within the Commission and regional economic blocs as well as the scope of
intervention of the AU, especially in the South Sudan conflict.
The proposed levy on eligible imports is meant to wean the Commission off
donors funding.
This proposal, christened the Kigali Declaration, was adopted at the 27th
African Union Summit in Kigali in July 2016.
It was made by a review team led by former African Development Bank
president Dr Donald Kaberuka.
Implementation of the financing mechanism was supposed to begin immediately,
with member states putting in place national legislations, but a majority have
concerns about how this would be effected, and have failed to come up with
provisions to domesticate it.
None of the countries in East Africa, save for Rwanda, effected this levy in
the 2018-19 budget, signalling the lacklustre reception the policy has
received.
The Nouakchott summit also approved the 2019 budget of $681.48 million,
which is 12 per cent less than the 2018 one, with most of the programmes’
allocation largely expected to come from donors.
Credibility and transparency
For the next fiscal year, the AUC operating budget is $416.32 million,
$243.43 million being operational costs for the AU mission in Somalia (Amisom),
leaving a balance of $265.15 million.
“I commend the efforts made in the planning of the 2019 budget of the
African Union which resulted in a reduction of 12 per cent in the budget
compared to 2018. The African Union has applied the ‘golden rules’ and adopted
the most credible and transparent budget in our history,” President Kagame said
at the Summit.
The Summit also assessed the progress made in the signing and ratification
of the African Continental Free Trade Area (AfCFTA) agreement.
It has been signed by 49 of the 55 members. Six states, including Kenya,
Rwanda and Ghana have ratified it. The treaty now requires 16 more
ratifications in order to come into force.
It would create a bloc with a cumulative GDP of $2.5 trillion, becoming the
world’s largest free trade area since the formation of the World Trade
Organisation.
Within the region, Burundi has eventually joined, leaving only only Tanzania
and Uganda who are yet to ratify it.
The Summit also tackled the migration issue creating an African Observatory
for Migration and Development to be based in Rabat, Morocco.
The EastAfrican understands that this move was lobbied and pushed
for by Morocco.
The Summit led by the Chairperson of the African Union Commission is also
said to have strongly disapproved of the European Union’s recent proposal to
create regional disembarkation platforms to be located outside of Europe for
migrants recused in international waters.
Last month, the EU said it was looking at a possibility of setting up such
centres in North Africa, where most migrant journeys to Europe begin.
Operational centre
“Such platforms should provide for rapid processing to distinguish between
economic migrants and those in need of international protection, and reduce the
incentive to embark on perilous journeys,” a leaked document from the Council
of European Union leaders said.
Last week, the United Nations agencies for migration and refugees said they
planned to present the EU with a plan for “regional disembarkation platforms”
around the Mediterranean where the bloc could hold migrants and decide whether
to admit them, something the African leaders have disapproved of.
The Summit instead tasked the AU Commission to accelerate the establishment
of a regional operational centre in Khartoum for sharing of information on
human trafficking and smuggling of migrants.
A continental study centre for migration and research data will be set up in
Mali. It will provide a platform for sharing data and information among Member
States on migration on the continent to allow enhanced governance and
management of migration.
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