Financing African Union’s peace fund for a more stable continent

The African Union is emphasizing the importance of sustainable development anchored on peace and stability, urging member states to step up their contributions to the peace fund. The issue has been a focal point during the summit, highlighting the crucial need to address peace fund challenges across the continent. Dagmawit Moges, Director of the African Union Peace Fund Secretariat, outlined the key strategies to enhance peace and security through the fund. Moges emphasized the importance of working on early warning systems to prevent conflicts and promote mediation and preventive diplomacy. With three main windows for the peace fund, including mediation and preventive diplomacy, capacity building, and peace support operations, Moges stressed the necessity for member states to increase their financial support for sustainable peace and security efforts. Since the initial endowment of 400 million in 2016, member states have shown commitment by contributing 97% of the target amount, signaling practical determination to fund peace-related activities within the continent. However, with ongoing peace and security challenges, Moges acknowledged the need for aggressive resource mobilization to address funding gaps and sustain peace initiatives. Given the pivotal role of peace in driving sustainable development and attracting private sector investments, Moges highlighted the vital link between peace, stability, and economic growth. Member states' contributions from the peace fund balance are earmarked for addressing peace and security challenges in the upcoming budget year, illustrating a proactive step towards enhancing continental stability. With 36 member states already fulfilling their contributions, Moges acknowledged challenges faced by some nations, such as Sudan, while commending the collective efforts of those able to contribute. The peace fund's governance structure, comprising a board of trustees and an executive management committee, ensures transparent and effective management of resources for peace-building activities. Notably, the engagement of private sector fund managers marks a significant milestone in leveraging financial expertise to maximize fund performance. Moges highlighted the strategic investment guidelines adopted to optimize fund utilization and enhance returns through diverse investment options. Looking ahead, the African Union aims to diversify funding sources by engaging high-net-worth individuals, private companies, and financial institutions. By expanding the resource pool, the African Union seeks to bolster preventive initiatives and minimize reliance on peace support operations, emphasizing proactive peace-building efforts. Plans to engage the private sector through targeted outreach initiatives underscore the collective responsibility of individuals and corporations in securing peace and stability across the continent. The establishment of an independent evaluation panel further ensures transparency and accountability in fund utilization, enhancing the impact assessment of peace interventions. Through collaborative efforts and increased financial support, the African Union endeavors to foster a more stable and prosperous continent driven by peace and sustainable development.