Mudavadi urges Africa to fund AU as external support threatens its independence

Prime Cabinet Secretary Musalia Mudavadi has urged African countries to take greater financial responsibility for the African Union (AU), warning that dependence on external funding threatens the bloc’s independence and sustainability.

Speaking during an Extraordinary Session of the AU Executive Council and Ministers of Finance in Accra, Ghana, Mudavadi said Kenya supports a 0.2 per cent levy on eligible imports, a US$1 billion (Sh130.05 billion) African Union Peace Fund and reforms to strengthen financial accountability.

Representing President William Ruto, who is the AU Champion for Institutional Reform, Mudavadi said sustainable financing was not merely a budgetary consideration but an existential issue for the continental organisation.

He noted that despite commitments under the Johannesburg Decision 578 and Kigali Decision 605 to increase member states' contributions, the agreed financing targets remained largely unmet, leaving the AU significantly dependent on external development partners.

Mudavadi said Africa needed to mobilise its own resources and strengthen home-grown financial institutions amid declining predictability of external development financing, rising sovereign debt vulnerabilities and growing geopolitical uncertainty.

Kenya has endorsed Option C, a proposed financing framework built around four pillars, including prioritising development programmes under Agenda 2063, adopting a consolidated budget structure and establishing predictable sources of revenue.

"Kenya maintains that the African Union must concentrate its resources on programmes that deliver measurable benefits to African citizens," Mudavadi said.

He added that the Union's priorities should demonstrate tangible returns on resources committed by member states and attract investment.

On financial autonomy, Kenya supports implementing the 0.2 per cent levy on eligible imports alongside establishing a US$1 billion (Sh130.05 billion) Peace Fund endowment and predictable mechanisms for replenishing it.

"Africa must have the means to finance the Africa it envisions," Mudavadi said.

He also called for a leaner and more effective AU through the elimination of duplicated mandates, improved coordination among institutions and better use of existing resources.

Mudavadi emphasised that financial sustainability must go hand in hand with accountability, transparency, prudent resource management and value for money.

Kenya also supports a structured partnership between the AU and African-owned multilateral financial institutions to mobilise capital and accelerate the implementation of Agenda 2063.

The meeting is expected to develop recommendations on financing the AU for consideration by the Assembly of Heads of State and Government during its 40th Ordinary Session in January 2027.