AU makes no headway on alternative funding sources

Addis Ababa, Ethiopia (PANA) - The African Union (AU) has made no headway in agreeing on alternative sources of funding to beef up assessed annual contributions from member states, according to the Secretary of the AU Commission, Jean Mfasoni.

Reduction in funding assistance from development partners and the inadequacy of the assessed contributions have meant that the AU would need the political will, more than anything else, from its member states to agree on alternative sources of funding its development programmes and projects that often fail due to inadequacy of resources.

"We are trying to push for the headway on this issue. What is required now is a political decision for a number of identified options to be implemented," Mfasoni told PANA here Tuesday.

He said that the options were elaborated since July 2003 when the AU leaders met in Maputo, Mozambique.

"Unfortunately, in spite of the studies produced on possible sources of funding for the organisation, there has been no headway. What is required now is more of a political decision rather than technical elaboration," Mfasoni explained.

An African finance ministers meeting held in December 2010 in Yaounde, Cameroon, proposed eight options including taxation on goods, air tickets, tourism receipts and oil exports.

"So far there is not yet a full agreement on what option to retain. This is an ongoing issue for discussion," Mfasoni said, adding that the AU member states need to improve the sources of funding for the organisation because it cannot rely on their assessed annual contributions.
-0- PANA AR/SEG 25Jan2011

25 january 2011 10:34:54




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