BY EYUEL KIFLU
For long, the African Union has been labeled by many as rubberstamp entity and too weak to overcome the biggest continent’s daunting problems. For its vocal critics, the union is an instrument of external actors that easily succumbs to foreign pressure given its extreme reliance on foreign financial aid. The continental bloc is mostly funded by other partners like the UN, EU, USA, and others.
Among the bevy of challenges facing the African Union (AU), the biggest continental bloc in Africa with 55 member states, is a financial hurdle. In spite of little headways over the years, the bloc has been lagging behind in achieving its raison d’êtres which include promoting socio-economic integration, political cooperation, peace, and security in the growing continent. For the union to live up to its purposes and function independently and properly, it needs adequate finance. However, the challenge of fulfilling financial issues remains tough with the critical issue being membership fees, which are essential for the union’s operational and administrative functioning.
On November 27, 2018, the AU reinforced its penalty regime to guarantee that the Union’s 55 member countries complete their financial responsibilities on schedule. The Assembly of Heads of State and Government adopted tough measures for member states that do not meet their financial responsibilities on time at the 2018 Extraordinary Summit on Institutional Reforms in Addis Ababa, Ethiopia. The UN and EU are the African bloc’s biggest partners, and the EU is the largest contributor to the AU’s budget. Funding is a major issue shaping the continental body’s external relations and often results in collaborations driven more by partners’ priorities than Africa’s. The AU relies heavily on partners to fund its activities, with two-thirds of its 2023 budget drawn from external sources, according to a report by the ISS (Institute for Security Study).
It is undoubtedly true that financial uncertainty will affect the decision-making process of the organization. The donor countries and organizations may try to influence their perception and use it to their advantage rather than the bloc. So, financial independence must be achieved soon. In an exclusive interview with The Ethiopian Herald, Miguel Domingos Bembe, the Angolan Ambassador to Ethiopia, said that financial autonomy is the main challenge facing the AU. Because the organization cannot function without a budget, member states need to provide their financial commitments. However, some member states have many difficulties to make a contribution. “So that is why, in the future, the big challenge of the union is securing its own resources.” But realizing it is not easy. But if nations have the will, they would be able to do that,” he elucidated.
“We have 55 state members; however, we have approximately five countries that contribute more to the budget of the union. The countries are Angola, Egypt, Morocco, South Africa, and Algeria. So this is a challenge we have to overcome,” he added. Similarly, if the organization does not have its own resources, it must find other alternative means of finance, because, without resources, it cannot operate effectively. And the challenge is that when the organization is getting resources from the state or other actors that are not from their own organization, they will need to have influence in the organization’s decision-making. So this is also the challenge for the African Union; even by getting the building where we are working, it’s coming from the heads of the partners.
“So I know that this is dangerous for our organization, and I think our leaders know that very well. And that’s why I trying my best to make sure that my country (Angola) continues to discharge its responsibility in terms of paying its fees. And, we are also working to mobilize other countries to make sure that they can contribute, even with the little they have, and avoid the interference in some external actors in the future,” he elaborated. He also emphasized that financial independence is the main challenge facing the union. It is very important that nations work to overcome this situation. AU is trying to use contributions from its member countries to finance its activities and programs. These contributions take the form of membership fees, which are assessed according to the AU’s scale of assessment.
The scale of assessment takes into account the GDP and Gross National Income (GNI) of each member country. However, the major issue the union has been facing is the payment of membership fees by member states. Many member countries of the AU are not paying their membership fees properly or on time. This may have resulted in a financial crisis in the organization, leading to delayed payments to staff, cancellation of programs and projects, and increasing debt. There are several reasons why member countries are not paying their membership fees properly. Some countries are facing economic difficulties and are unable to pay their dues in full. Others are simply unwilling to pay due to political reasons or disputes with other member countries.
Moreover, many African countries are heavily reliant on foreign aid, which oftentimes takes priority over their membership fees in the AU. As a result, it becomes difficult for them to meet their financial obligations to the bloc. The failure of member countries to pay their membership fees has significant consequences for the continental bloc. It hinders the organization’s ability to implement its programs and goals, which are crucial for the development and stability of the continent.
The AU has therefore taken steps to address this issue. One of the measures is the implementation of a new funding model, which will reduce the organization’s dependence on member states’ contributions. The model will allow the union to generate revenue from other sources such as partnerships, grants, and loans. The other thing is that AU countries are banned when they do not pay their membership fee. On June 16, 2020, South Sudanese representatives were banned from attending an African Union meeting after their government failed to pay annual membership dues for the following three years, totaling more than $9 million.
Finally, the issue of membership fees in the African Union is a major challenge that the organization must address. While some member countries are facing economic difficulties, others are simply unwilling to pay. The implementation of a new funding model by the AU is a welcome development, but it is important for member countries to fulfill their financial obligations to the organization. This will enable the AU to achieve its goals and objectives and contribute to the development and stability of the African continent.
THE ETHIOPIAN HERALD TUESDAY 13 JUNE 2023
