African Union plans to raise $1.2 billion annually

The African Union has targeted 1.2 billion dollars annually to finance its activities. As it depends heavily on donors, AU members plan to raise the funds through a 0.2 per cent levy on imports.

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The African Union has targeted 1.2 billion dollars annually to finance its activities. As it depends heavily on donors, AU members plan to raise the funds through a 0.2 per cent levy on imports.

Heads of states meeting in Kigali, however, have exempted imports of products such as fertilisers, medicines and baby food from the new levy. It’s due to come into effect in January 2017.
Central banks from the 54 member states will be charged with remitting the funds to avoid defaulting and promote transparency.

Under the model, no country will be exempt from contribution, no matter the state of its socio-economic or political affairs.

At least 76 per cent of the African Union’s 475 million dollar budget for 2016 is funded by international partners and donors.