Opening the executive council session of the commission in Accra, Ghana on Friday , Faki said the level of statutory contributions from AU member states is capped at $200 million instead of the 250 million, considering the cash flow pressure faced by most of AU member states.
However, he warned that this reduction would pose two structural problems namely dependence of the AU on its partners and lack of consistency in its move to integration and development.
He said the funding from partners is very volatile, as evidenced by the rate of disbursement of funds and lower than commitments.
According to the chairperson, operationalization of the peace fund and the adoption of the principle of financing African peacekeeping missions from sustainable resources are in line with the significant sectoral progress.
The amplification of this progress could well, in the long term, usher in a new era of significant reduction in our dependence on international partners as regards the demands of peace and the financing of Peace support operations, he said.
He said the sustainability of this fund will depend on the quality of the commission’s governance, its investment policy and responses to calls made to the various contributors.
MG/abj/APA