Decision on the Scale of Assessment and Implementation of Alternative Sources of Financing the African Union


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.

Shape1

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

 

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