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African Union’s Quest for Alternative Sources of Finance: Lessons from the Recovery and Rehabilitation Tax of Eritrea

To tap into contributions from African Diasporas might be the only viable, standalone alternative source of funding for AU
To tap into contributions from African Diasporas might be the only viable, standalone alternative source of funding for AU

By Elias Begashaw,

The African Union has been struggling to find adequate finance to pay for its activities for as long as its existence. The annual contributions from the Member States only cover a fraction of its expenses. Up to 96% of the programme budget of the organs of the Union is hence covered by donations from external sources.

There is consensus that the existing model of financing is unpredictable and exposes the union to undue external interferences. Accordingly, the need to secure “adequate, reliable and predictable financing” has been on the agenda since the days of the OAU.

Over the years, a plethora of alternative sources of finance, ranging from levy on insurance premiums to tax on SMS, have been considered. Several meetings were held at different levels to identify the best proposals. Continue reading African Union’s Quest for Alternative Sources of Finance: Lessons from the Recovery and Rehabilitation Tax of Eritrea