Peace Fund

The Peace Fund is part of the broader African Peace and Security Architecture (APSA) that, together with the PSC, the African Standby Force, the Military Staff Committee, the Continental Early Warning System, and the Panel of the Wise, works to support the prevention, management, and resolution of conflicts, and facilitates timely and effective responses to conflict and crisis situations in Africa. The Peace Fund covers more than just the peace support operations. The objective of the endowment is to enable the African Union to fully finance mediation and preventive diplomacy activities, support institutional readiness and capacity, maintain a crisis reserve facility, and enable the AU to meet its commitment to finance 25% of its peace operations budget.

While the Peace Fund had been in existence for over twenty years, a significant amount of work was required to fully operationalize it. The key outstanding elements were:
a) Ensuring predictable and sustainable financing,
b) Putting in place credible and transparent governance systems and structures, and
c) Consolidating work on fiduciary rules and management in compliance with internationally accepted standards.

Successive Summits of the African Union have since 2015, taken financial reform decisions to ensure there is sound and predictable finances to address the historical challenges the Union has faced. The decisions have focused on the need for financial autonomy and reduced dependency on external financing; the prudent management of the Union’s resources and improved accountability; the timely and predictable payment of all Member State assessed contributions to the African Union; and the predictable and sustainable financing of the AU’s operational peace and security activities through the revitalization of the AU Peace Fund and the pursuit of strategic partnerships.

The Chairperson of the African Union Commission (AUC) appointed Dr. Donald Kaberuka as the AU High Representative for the Peace Fund in January 2016 to address the above issues. He presented his proposals to the Retreat of Heads of States and Government, Ministers of Foreign Affairs and Ministers of Finance on the Decision on Financing of the Union in Kigali, Rwanda in July 2016.

The Decision on Financing of the Union underscored the significance of the operationalization of the AU Peace Fund, in particular the legal instrument, the operational and the financial rules and regulations. Between June and July 2017, the PSC, the Executive Council and the Assembly of Heads of States and Governments endorsed and adopted the enhanced governance and management structure for the Peace Fund.  

In January 2018, the AU Assembly adopted the Peace Fund Instrument. This provides the framework for the development of the revitalised Peace Fund regulations adapted to the core business of the Fund to ensure the Fund delivers timely and effectively support in the areas of mediation and preventive diplomacy, AU led peace support operations, and the development of core institutional capacities.  The Peace Fund is the primary instrument for support to operational peace and security activities in Africa.

In its quest to reduce the level of dependency and regain autonomy and ownership of the peace and security agenda, the African Union has made commendable progress in revitalizing the AU Peace Fund, evidenced in the increased member states contribution to the Fund, and the enhanced governance and management arrangements for the Fund.

The Secretariat executes the day-to-day operations of the Fund.  The Secretariat is headed by a Director, appointed by the Chairperson of the Peace Fund Executive Management Committee (EMC). The Secretariat is staffed with professional staff and fund managers with relevant experience and assist the Secretariat in the day-to-day operations of the Fund, providing the administrative, legal and financial expertise required in the management of the Fund.  The operations and reporting functions of the Secretariat includes:

• - Organize and execute all administrative duties;
• - Liaise with contributors to the Fund, the Independent Evaluation Group and the independent Fund Manager; 
• - Operationalize the activities, programming, human resources, administration and financial management processes of the Fund;  
• - Prepare financial agreements related to specific activities; 
• - Work with the IEG, the independent Fund Manager and the external auditor to enable them to carry out their respective responsibilities; 
• - Develop working and coordination arrangements with other relevant African Union bodies and relevant international institutions and potential partners to the Fund;
• - Prepare policies and procedures for adoption by the Chairperson of the EMC based on the recommendation of the Board of Trustees to promote sound management of the Fund;
• - Promote where possible a shared services mechanism with other entities of AU for synergy and resource saving; and
• - Perform any other functions delegated by the Executive Management Committee or conferred elsewhere in this Instrument.
• - Report information on the Fund’s activities to the relevant AU policy organs; 
• - Prepare performance reports on the implementation of activities under the Fund; 
• - Prepare reports on strategic, operational and financial matters for the Board of Trustees and the EMC; and 
• - Receive reports from the Independent Evaluation Group and the independent Fund Manager on strategic, operational, financial and investment matters.

A Board of Trustees, inaugurated in November 2018, has been working to ensure the full operationalization of the governance and management structure of the fund. The Board of Trustees ensures the strategic coherence and enhanced governance, financial and administrative oversight of the Peace Fund. The Board consists of seven (7) members comprising of five African members representing the 5 AU Regions and two international partners. One African member is elected Chairperson and presides over the Board of Trustees for a period of four (4) years.

The Eminent Persons selected to serve as members of the Board of Trustees are experts who contribute substantially to the realization of the objectives of the Fund, with due consideration to gender balance and regional representation, and are appointed by the Chairperson of the AU Commission. The Board of Trustees have the necessary experience and skills relevant to the objective and mission of the Fund.  The non-African partners to serve as members of the Board of Trustees are selected and appointed by the Chairperson of the AU Commission and from among the non-African contributors to the Fund.

Board members serve for a term of five (5) years renewable for not more than one additional term. All matters before the Board of Trustees are determined at meetings that occur at least two (2) times each calendar year in ordinary sessions, or as otherwise decided by the Board of Trustees. The Chairperson of the Board, in close consultation with the other members of the Board, can convene extraordinary as may be required.  Meetings of the Board of Trustees take place at the headquarters of the AUC, unless the Board of Trustees decides otherwise.  

Current Board of Trustees.

• Mr. Tito Mboweni, Chair of the Board (South Africa)
• Mrs. Zainab Shamsuna Ahmed (Nigeria)
• Mr. Anicet Georges Dologuele (Central Africa Republic)
• Ms. Elene Makonnen (Ethiopia)
• Ms. Birgitte Markussen (European Union (EU)
• Mr. Parfait Onanga-Anyanga (United Nations (UN)

The core roles and functions of the Board of Trustees includes:

1. Advising on the overall direction and strategy of the Fund;
2. Approving operational strategy and modalities for mobilizing, accessing and utilizing the resources of the Fund; 
3. Approving specific operational policies and guidelines on programming, administration, financial management and any other matter relevant to the operations of the Fund;
4. Approving additional windows and facilities to address specific activities, as appropriate;
5. Taking action as may be directed by the Assembly, the PSC or the Chairperson of the AU Commission in response to operational peace and security issues;
6. Approving internationally accepted environmental and social safeguards and fiduciary principles and standards;
7. Providing guidance on linkages and cooperative partnerships with other relevant African Union bodies, relevant international institutions and potential partners to the Fund; and
8. Amending the eligibility criterion for financing by the Fund.
   Submit annual reports to the PSC on its activities;
9. Receiving reports from the Secretariat, the IEG and the independent Fund Manager on strategic, operational and financial matters;
10. Approving a framework for the monitoring and evaluation of performance of the Fund, the financial accountability of activities supported by the Fund and external audits; and
11. Approving the appointment of the heads of any accountability units;  
    Exercising such other oversight functions not inconsistent as may be appropriate to fulfil the objectives of the Fund.  

The Executive Management Committee (EMC) provides executive management and oversight and is responsible for directing the activities of the Peace Fund. It is comprised of: the Chairperson of the AUC; the Deputy Chairperson of the AUC; the Commissioner for Political Affairs, Peace & Security; and the Director of the Secretariat of the Secretariat, without a vote.  The Chairperson of the AUC serves as chairperson of the EMC and presides over meetings. The core roles and functions of the EMC include:

1. Overseeing the operation of all relevant components of the Fund;
2. Endorsing the recruitment of the Head of the Secretariat for appointment by the Chairperson of the EMC, based on selection criteria and recruitment process as validated by the Board of Trustees;
3. Endorsing the selection of an independent Fund Manager for appointment by the AU Commission, based on a selection criteria and recruitment process as validated by the Board of Trustees;
4. Receiving reports from the Secretariat, the IEG and the independent Fund Manager on strategic, operational and financial matters;
5. Reviewing and consider the annual work program and budget of the Fund;
6. Reviewing audited financial statements;
7. Recommending (1) operational and access modalities, and (2) operational policies and guidelines for programming, administration and financial management;
8. Approving funding in line with the Fund’s principles, criteria, modalities, & policies.

The Independent Evaluation Group undertakes periodic independent evaluations of the performance of the Fund to provide an objective assessment of the performance of the Fund, including the impact of its funded activities, administrative management, and effectiveness. 

The Crisis Reserve Facility (CRF) is a revolving trust fund that can adjust quickly to the African continent's immediate and evolving peace and security needs. The deployment of Peace Support Operations (PSOs) and preventive diplomacy capacities in the past has been hampered by the absence of a reserve facility that can finance missions at short notice. These deployments are further hindered by the fact that the budgeting cycle of the AU is based on a calendar year (January-December), with annual budgeting requirements decided up to six months in advance.

The CRF is envisioned to address these challenges to support the activities that meet the criteria such as start-up costs of PSOs, emergency mediation and preventive diplomacy initiatives and other unplanned and unbudgeted activities until these activities can be incorporated into the AU’s regular Peace Fund budgeting cycle. Essentially, the CRF would provide the AU with the flexibility to address rapid onset crises that erupt without sufficient warning.

In May 2023 meeting of the Board of Trustees, the Board recommended an increase in the level of the Crisis Reserve Facility from US$5 million to US$10 million and further recommended this level for the CRF for 2024. This CRF level will go through the AU policy organs for consideration and approval. The purpose of the increase is to ensure rapid response of the AU during the start-up phase of new Peace Support operations and mediation and preventive diplomacy; and fund expansion of existing peace support operations; and meet any unforeseen and extraordinary expenditure requirements related to Peace Support operations and mediation and preventive diplomacy. 

Crisis Reserve Facility Criteria:

1. Start-up costs of new missions authorized by the chairperson of the AU Commission or any other competent AU Organ, until they have been absorbed into the regular budgeting process of the Peace Fund.
2. The emergency must be of a scale which is clearly beyond the capacity of the country and its own agencies.
3. It should be established that the proposed activities can be carried out expeditiously and effectively within the required time frame
4. Such emergency assistance should aim at restoring a degree of stability and peace in the life of the affected populations as quickly as possible.

The Peace Fund will finance activities that have been authorized by a competent AU Policy Organ with a specific mandate to operationalize peace and security activities that fall with the scope of the following three thematic windows:

Window 1: Mediation and Preventive Diplomacy

• Early warning and preventive diplomacy which aim to prevent the outbreak or escalation of violent conflict; and
• Peace-making, including the use of good offices, mediation, conciliation, and enquiry which aims to prevent, manage or resolve intra- or inter-state conflict.

Window 2: Institutional Capacity

• Support to AU Liaison Offices: To strengthen their early warning, conflict prevention, mediation, and preventive diplomacy capacities; and
• Cross-cutting: Support to Regional Economic Communities (RECs)/ Regional Mechanisms for Peace and Security (RMs) in strengthening financial and reporting systems as part of the Peace Fund partnership.

Window 3: Peace Support Operations (PSOs)

• The Fund shall finance the following types of PSOs, and actions mandated or authorized by, as the case may be, the Assembly, or the PSC and delivered by the AU, RECs/RMs or a coalition of Member States:
  • Observer Missions;
  • Preventive Deployment and Peace Enforcement Missions;
  • Stabilization Missions following Peace Enforcement Missions; and
  • Missions and Security Initiatives in response to complex national and transnational security threats.
• All assessment and planning activities related to the consideration or preparation of an observer or preventive deployment mission, PSO or national/transnational security initiative will be financed by the Peace Fund.

 

• Instrument relating to the African Union Peace Fund.
• History and background on Financing of the Union.
• 2020 Status Report on “Towards the Financial Autonomy of the African Union.”
• High Level Retreat on the Operationalization of the Peace Fund.
• Overview of Institutional Reforms.
• Unleashing Africa's Inner Strengths: Institutions, policies and champions
• Report on AU Reforms by President Paul Kagame
• African Union Administrative Reform Roadmap 2018-2021.
• Domestic Resource Mobilization: a Fight against Corruption and Illicit Financial Flows
• How Africa loses US$50 billion to Illicit Financial Flows
• African Union Assembly Special Declaration On Illicit Financial Flows
• African Continental Free Trade Area
• Africa Development Dynamics Report