Ghana has pledged to ratify the treaties for three African Union financial institutions, including the African Central Bank, by 2027. Foreign Affairs Minister Samuel Okudzeto Ablakwa made the commitment while welcoming delegates to the AU Executive Council's 27th Extraordinary Session in Accra. The session aimed to discuss how the Union pays its own way. Ablakwa also proposed an Accra Declaration on Financing the Union, outlining six commitments for member states.
The Accra Declaration sets out a roadmap for financing and reform, including the adoption of an integrated pathway known as Option C. The declaration also proposes a 0.2 per cent import levy in each country, or an equivalent domestic mechanism, and a programme-based budget with a medium-term expenditure framework. Additionally, it suggests raising the Peace Fund from the current US$400 million target to US$1 billion. The declaration also seeks to establish the Alliance of African Multilateral Financial Institutions as a formal, lasting AU partner.
Ablakwa stated that member states are projected to cover nearly 99 per cent of the Union's operational budget in 2027, but only about 4 per cent of its programme budget and 12 per cent of peace and security spending. He expressed concern that the current funding arrangement is unsustainable, saying "We pay for the lights, but we ask others to pay for the work." Ablakwa called on member states to make concrete moves towards ratification before ministers next meet.
The AU Commission Chairperson, Mahmoud Ali Youssouf, proposed reviewing the ceiling on statutory contributions and widening the use of the levy. He emphasized the need for African sovereignty to be built, organized, and financed. Youssouf's comments highlight the challenges facing the AU in securing funding for its operations and programmes.
President John Dramani Mahama is the AU's champion for setting up its financial institutions, and Ghana is due to take the AU chairmanship in 2027. Ablakwa said Ghana would use its 2027 term to stage an Extraordinary Summit on African Financial Institutions, with Accra as host. The summit aims to accelerate the establishment of the African Central Bank and other financial institutions.
The African Union has been working to establish its financial institutions, including the African Central Bank, Monetary Fund, and Investment Bank, to promote economic integration and development in Africa. The institutions are expected to play a critical role in financing the Union's operations and programmes. However, the process has been slow, with only 18 of the 55 member states applying the levy on eligible imports.
Ablakwa's pledge to ratify the treaties by 2027 is a significant step towards establishing the African Central Bank and other financial institutions. The Accra Declaration and the proposed commitments outlined in it are expected to help African states pay for their Union. The success of these initiatives will depend on the commitment and cooperation of member states.
Key points
- Ghana to ratify treaties for African Central Bank, Monetary Fund, and Investment Bank by 2027.
