Interview: UN commends internal funding for AU activities

A Senior United Nations official has commended African Heads of States for coming up with a domestic sustainable funding mechanism for the African Union (AU) activities.

Dr. Carlos Lopez, Executive Secretary of the Economic Commission for Africa, observed that the radical decision comes at a time that the continent requires local focus in solving its problems.

"It is important to note that the 15 year old discussions have finally been adopted and all countries are expected to enforce it beginning June next year," Lopez said on Sunday in an exclusive interview with Xinhua on the sidelines of the ongoing 27th AU summit in Kigali, Rwanda.

Late Saturday, the 54 Heads of States approved the taxation of a levy of all eligible goods at a rate of 0.2 percent to help finance the AU activities.

The taxation will avail to the continental body 1.2 billion U.S. dollars per year and will replace the 76 percent of external donor funding.

The taxation will be collected by the member states' revenue authorities and will be deposited in an account that will be opened in all central banks in the continent.

In the 2016 budget, the Heads of States approved 427 million U.S. dollars for the Pan African organization on programs including the peace missions.

Lopez observed that once China's commitment of 60 billion U.S. dollars that was pledged during the Forum on China and Africa Cooperation (FOCAC) conference, Africa will be in better stage of development with better infrastructure, industrialization and information and communication technology.

"China is currently the number one trading partner with Africa and has accomplished tremendous development projects," Lopez said.

He added that the three year time frame for the allocation will help position China well in the continent. Endit