DECISION ON THE SCALE OF ASSESSMENT AND IMPLEMENTATION OF ALTERNATIVE SOURCES OF FINANCING THE AFRICAN UNION
Doc. EX.CL/900(XXVII)
The Executive Council,
1. TAKES NOTE of the Report of the Ad-Hoc Ministerial Committee on the review of the scale of assessment;
2. RECOMMENDS to the Assembly to endorse the recommendations of the Ad- Hoc Ministerial Committee as follows;
i) The new scale of assessment will be based on the principles of solidarity, equitable payment and capacity to pay and in a way that ensures no single country bears a disproportionate share of the budget;
ii) The new scale of assessment shall be based on achieving the following targets
a) 100% of the Union’s Operational budget;
b) 75% of Union’s Program budget;
c) 25% of Union’s Peace support operations budget;
iii) That the new scale of assessment shall be based on a tier system as follows;
a) All countries with GDP above 4% - tier 1
b) All countries above 1 % but below 4% - tier 2
c) All countries from 1 % and below - tier 3
iv) The achievement of the Targets above in (ii) should be phased over 5 years starting immediately after implementation of paragraph 9 of this decision;
3. FURTHER RECOMMENDS to the Assembly as follows:
i) The new scale will be based on the principle that the five Member States in the Tier 1 shall take 60 percent of the budget shared equally; whereas Member States in Tier 2 and Tier 3 pay based on capacity to pay as contained in Option 3 of the proposal;
ii) The new scale will be based on a ceiling of 12 percent without the imposition of floor rate;
iii) The new scale will be implemented for the financial years 2016 2017 and 2018;
4. RECOMMENDS to the Assembly to adopt the new AU scale of assessment which constitutes a hybrid of pure capacity to pay for some Member States and equal payment scales for others in accordance with the percentage of the budget under each tier;
5. URGES Member States to choose from a non-exhaustive, non-binding basket of options of alternative sources of funding in line with national imperatives, laws, regulations and constitutional provisions;
6. URGES the Commission in consultation with the Ad-Hoc Ministerial Committee to institute a robust annual review mechanism during the first five years of implementation that will assess possible impacts and recommend adjustments when and where necessary;
7. ENCOURAGES the Commission and the Ad-Hoc Ministerial Committee to continue working on and incorporating modalities that will build synergy between review of scale of assessment and budgeting, financial governance and management processes;
8. URGES Member States working in the spirit of solidarity and self-reliance to strive to achieve the stated contribution targets contained in relevant Assembly Decisions;
9. REQUESTS the Ad-Hoc Ministerial Committee meeting in an open-ended manner to pursue and conclude its work in instituting a sound and credible accountability and oversight mechanism that will ensure effective scrutiny of the budgetary processes including its presentation and implementation. In this regard, FURTHER REQUESTS the Ad-Hoc Ministerial Committee to meet in October 2015 to consider all outstanding issues, including the consultation with the Republic of Angola on its scale of assessment and submit its report on the matter at the next Summit in January 2016;
10. URGES the Commission to provide all the necessary support to ensure timely conclusion of the exercise by providing a comprehensive list of existing and proposed accountability mechanisms;
11. ENCOURAGES Member States to promptly pay their assessed contributions once the new scale comes into force.
Scale of Assessment for 2016, 2017 and 2018
"Alternative Funding Sources for the African Union - Implementation of Options"
APPLYING A VARIABLE GROUP ASSESSMENT METHOD (Tiers determined by country share to
total GDP/GNI)
|
|
Sorted from |
Country |
Country |
|
|
highest to |
grouped |
grouped |
|
Based on GDP |
lowest |
into 3 tiers |
into 3 tiers 12% |
Member State |
for 2013 |
% to Total |
NO CEILING |
CEILING |
(Data source: UNSD, WB. IMF & country sources)
Nigeria |
521 812 000 000 |
23,225 |
21,145 |
12,000 |
South Africa |
350 800 000 000 |
15,613 |
14,215 |
12,000 |
Egypt |
271 427 000 000 |
12,081 |
10,999 |
12,000 |
Algeria |
212 453 000 000 |
9,456 |
8,609 |
12,000 |
Angola |
124 178 000 000 |
5,527 |
5,032 |
12,000 |
Total 1st Tier |
1 480 670 000 000 |
65,901 |
60,000 |
60,000 |
Sudan |
66 748 000 000 |
2,971 |
3,322 |
3,322 |
Libya |
65 516 000 000 |
2,916 |
3,260 |
3,260 |
Kenya |
54 993 000 000 |
2,448 |
2,737 |
2,737 |
Ghana |
47 830 000 000 |
2,129 |
2,380 |
2,380 |
Tunisia |
46 995 000 000 |
2,092 |
2,339 |
2,339 |
Ethiopia |
45 999 000 000 |
2,047 |
2,289 |
2,289 |
U.R. of Tanzania |
33 285 000 000 |
1,481 |
1,656 |
1,656 |
Cote d'Ivoire |
32 061 000 000 |
1,427 |
1,596 |
1,596 |
Dem. Rep. of the |
|
|
|
|
Congo |
29 896 000 000 |
1,331 |
1,488 |
1,488 |
Cameroon |
29 267 000 000 |
1,303 |
1,457 |
1,457 |
Zambia |
26 831 000 000 |
1,194 |
1,335 |
1,335 |
Uganda |
22 926 000 000 |
1,020 |
1,141 |
1,141 |
Total 2nd Tier |
502 347 000 000 |
22,358 |
25,000 |
25,000 |
Gabon |
19 266 000 000 |
0,857 |
1,095 |
1,095 |
Equatorial Guinea |
15 598 000 000 |
0,694 |
0,887 |
0,887 |
Mozambique |
15 311 000 000 |
0,681 |
0,871 |
0,871 |
Botswana |
14 804 000 000 |
0,659 |
0,842 |
0,842 |
Senegal |
14 796 000 000 |
0,659 |
0,841 |
0,841 |
South Sudan |
14 031 000 000 |
0,624 |
0,798 |
0,798 |
Congo |
13 478 000 000 |
0,600 |
0,766 |
0,766 |
Chad |
13 412 000 000 |
0,597 |
0,763 |
0,763 |
Zimbabwe |
13 206 000 000 |
0,588 |
0,751 |
0,751 |
Namibia |
12 251 000 000 |
0,545 |
0,697 |
0,697 |
Burkina Faso |
12 042 000 000 |
0,536 |
0,685 |
0,685 |
Mauritius |
11 937 000 000 |
0,531 |
0,679 |
0,679 |
Mali |
10 882 000 000 |
0,484 |
0,619 |
0,619 |
Madagascar |
10 645 000 000 |
0,474 |
0,605 |
0,605 |
Benin |
8 310 000 000 |
0,370 |
0,473 |
0,473 |
Rwanda |
7 601 000 000 |
0,338 |
0,432 |
0,432 |
Niger |
7 413 000 000 |
0,330 |
0,422 |
0,422 |
Guinea |
6 230 000 000 |
0,277 |
0,354 |
0,354 |
Sierra Leone |
4 915 000 000 |
0,219 |
0,279 |
0,279 |
Togo |
4 340 000 000 |
0,193 |
0,247 |
0,247 |
Mauritania |
4 191 000 000 |
0,187 |
0,238 |
0,238 |
Malawi |
3 823 000 000 |
0,170 |
0,217 |
0,217 |
Swaziland |
3 795 000 000 |
0,169 |
0,216 |
0,216 |
Eritrea |
3 444 000 000 |
0,153 |
0,196 |
0,196 |
Burundi |
2 723 000 000 |
0,121 |
0,155 |
0,155 |
Lesotho |
2 268 000 000 |
0,101 |
0,129 |
0,129 |
Liberia |
1 955 000 000 |
0,087 |
0,111 |
0,111 |
Cape Verde Central African |
1 861 000 000 |
0,083 |
0,106 |
0,106 |
Republic |
1 538 000 000 |
0,068 |
0,087 |
0,087 |
Djibouti |
1 455 000 000 |
0,065 |
0,083 |
0,083 |
Seychelles |
1 386 000 000 |
0,062 |
0,079 |
0,079 |
Somalia |
1 342 405 715 |
0,060 |
0,076 |
0,076 |
Guinea-Bissau |
964 000 000 |
0,043 |
0,055 |
0,055 |
The Gambia Saharawi Arab |
850 000 000 |
0,038 |
0,048 |
0,048 |
D.R. |
765 373 589 |
0,034 |
0,044 |
0,044 |
Comoros Sao Tome and |
658 000 000 |
0,029 |
0,037 |
0,037 |
Principe |
311 000 000 |
0,014 |
0,018 |
0,018 |
Total 3rd Tier |
263 797 779 304 |
11,741 |
15,000 |
15,000 |
T O T A L |
2 246 814 779 304 |
100,000 |
100,000 |
100,000 |