Ablakwa urges AU members to implement 0.2% import levy to fund Union

Foreign Affairs Minister Samuel Okudzeto Ablakwa has called on all African Union member states to swiftly implement the 0.2 percent levy on eligible imports, in order to bolster the Union's financial autonomy. According to Mr. Ablakwa, only 18 out of the 55 member states have thus far adopted the levy, which was established in 2016 as a reliable funding source for the continental body.

Addressing the 27th Extraordinary Session of the Executive Council on Financing the African Union in Accra, the minister emphasized that Africa cannot persist in relying heavily on external assistance to finance its priorities. He pointed out that while member states were expected to fund nearly 99 percent of the AU's operational budget in 2027, they currently contribute only about four percent of its programme budget and 12 percent of its peace and security budget.

"In effect, we light the way, but we entrust others with the task of powering the machinery," he remarked. The minister advocated for an integrated financing and reform strategy that would enhance both revenue generation and the management of the Union's resources. He proposed the elimination of redundancies, phasing out overlapping programs, and the adoption of a unified programme-based budget, a medium-term expenditure framework, and the principle of one program per budget line.

Mr. Ablakwa also urged a review of the existing $200 million contribution ceiling and measures to counter the depreciation of the real value of member states' contributions. He assured that Ghana would intensify its efforts to implement the levy domestically and provide updates on its progress to the Executive Council.