AFRICA: AU to increase annual budget

[ This report does not necessarily reflect the views of the United Nations]

ADDIS ABABA, 9 Dec 2004 (IRIN) - The African Union (AU) has voted for a fourfold increase in its budget, but cuts still have to be made to some programmes, officials said on Tuesday.

Foreign ministers voted for a sharply downsized US $158-million package after 24 hours of talks behind closed doors at their base of operations in Addis Ababa.

"They have made cuts across the board," AU spokesman Desmond Orjiako told IRIN. "Even areas like peace and security have been cut, although it does get the lion’s share of the budget."

The AU budget is crucial for the realisation of an ambitious, three-year strategy spelt out by AU Commission Chairman Alpha Oumar Konare earlier this year. South African Foreign Minister Nkosazana Dlamini-Zuma said ministers had taken the decision to restrict funding based on priorities and available funds.

"The AU needs a lot of money in order to carry out its work," she told IRIN after the budget meeting. "But we have to be realistic. We don’t want to run our organisation from a begging bowl."

Among areas that have been put on hold until next year is the continent-wide, anti-poverty blueprint – the New Partnership for Africa’s Development (Nepad). The AU had wanted $200 million a year to finance Nepad – in areas like road and bridge building - then cut that figure to $30 million before it was shelved.

The current AU budget is $43 million, but only $27 million has been paid up. The AU is also owed $26 million. Under the new arrangement, $63 million will be financed from obligatory contributions, while $95 million will be voluntary.

The final budget details emerged after months of negotiations between the commission and African nations that make up and finance the continental body. Originally, Konare had proposed a $1.7-billion strategic plan for the 53-nation bloc. Under his plan, key institutions would include a peace fund with its own standing army, a pan-African parliament that would be based in South Africa and a court of justice.

[ENDS]