Union Financing

(The Daily Monitor)—The African Union Commission (AUC) on Thursday said it signed a financing arrangement with a group of international partners aimed at supporting the Pan African body’s endeavor to transform in to a Union.

AU said the Joint Financing Arrangement (JFA) was signed with the group of Pooled Fund Partners (the Kingdom of Denmark, the Federal Republic of Germany, the United Kingdom, the Kingdom of the Netherlands and the Kingdoms of Norway and Sweden) on Wednesday at the Commission’s Addis Ababa Head Quarters.

"Under the JFA, the Partners Group will make significant financial contributions to the Institutional Transformation Process of the AUC," the commission said in a statement.

The JFA, the statement said, encompasses support to the Process Facility, the Integrated Management Information System and the VSAT Communication System.

AU said the VSAT aims to establish a private communication infrastructure between the AUC headquarters, AU Member States, Regional/ Representational Offices, Regional Economic Communities, African Embassies in Addis Ababa and other institutions.

The Integrated Management Information System is aimed at transforming the functioning of the Finance and Administration Directorate so as to provide efficient support services to other AUC.

Ambassador John Shinkaiye signed on behalf of the AUC with representatives of the Pooled Fund Partners, the statement said.

It said speaking after the signing ceremony, the Ambassador applauded the partners for unequivocally committing themselves to propelling the "now mature relationship" with the Commission to greater heights.

He added that the signing ceremony marked a significant step in the Commission’s gradual move away from individual project funding towards direct budget support, according to the statement.

A representative of the Partners called today’s ceremony "an intermediate step towards higher goals", said the statement.

AU said the projects covered by the JFA will over time develop the capacity of the AUC’s financial and administrative efficacy and by so doing greatly enhance its credibility.

"The timely and effective implementation of these programmes is thus a decisive step towards the Institutional Transformation from the Organization of African Unity to the African Union," the statement said.

."The JFA with a total volume of almost US$ 6.2 million is also testimony to the increased confidence that the African Union Commission enjoys internationally," it added.

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