Prime Cabinet Secretary Musalia Mudavadi has reaffirmed Kenya's commitment to a financially independent, sustainable, and accountable African Union (AU). Speaking at the Extraordinary Session of the African Union Executive Council and Ministers of Finance in Accra, Ghana, Mudavadi emphasized that Africa's financial sovereignty was crucial to implementing collective decisions and protecting its independence. He represented President William Ruto, the AU Champion for Institutional Reform.
The meeting brought together Ministers responsible for Finance and Foreign Affairs, the African Union Commission, and representatives of African multilateral financial institutions. They examined practical and sustainable ways of financing the continental organization. Kenya's delegation included Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, underscoring Nairobi's commitment to aligning diplomatic efforts with required financial resources.
Mudavadi noted that Africa had made important commitments towards financial sovereignty through the Johannesburg Decision 578 and Kigali Decision 605. These decisions aimed to increase member states' responsibility for financing the Union. However, he acknowledged that financing targets remained largely unmet, leaving the AU dependent on external development partners. Mudavadi stressed the need for Africa to mobilize its own resources and strengthen its financial institutions.
Kenya endorsed Option C, a proposed framework towards achieving a financially sustainable and effective African Union. The framework has four interconnected pillars, including a high-value programmatic offer anchored in Agenda 2063. Mudavadi stated that Kenya supported adopting a consolidated budget architecture anchored in a medium-term expenditure framework to strengthen planning and improve resource allocation.
On financial autonomy and predictable resource mobilization, Mudavadi said Kenya supported implementing a 0.2% levy on eligible imports, alongside establishing a $1 billion African Union Peace Fund endowment. He emphasized that financial sustainability must go hand-in-hand with accountability, transparency, and prudent resource management. Mudavadi also supported building a leaner and more effective African Union by eliminating duplicated mandates and improving coordination among institutions.
Mudavadi highlighted the importance of a structured AU-AAMFI Strategic Partnership Framework to mobilize African capital, strengthen home-grown financial institutions, and accelerate Agenda 2063 implementation. He urged member states to approach deliberations with solidarity and shared responsibility, noting that differences in national economic circumstances should not undermine the collective determination to build a financially sustainable Union.
The meeting is expected to develop recommendations on financing the African Union for consideration by the Assembly of Heads of State and Government during its 40th Ordinary Session in January 2027. The recommendations will aim to address the challenges facing the AU's financial sustainability and ensure the continent's financial sovereignty.
Key points
- Kenya's Prime Cabinet Secretary Musalia Mudavadi and Treasury CS John Mbadi have called for increased funding to secure the African Union's financial independence.
- The African Union's financial sustainability is crucial to implementing collective decisions and protecting its independence.
- Kenya has endorsed Option C, a proposed framework towards achieving a financially sustainable and effective African Union.
