Peace Fund

The African Union Peace Fund (AUPF) was established in June 1993 as one of the operational tools to finance the peace and security activities of the Organization for African Unity (OAU). Article 21 of the Protocol Relating to the Establishment of the Peace and Security Council (PSC) of the African Union provides for the legal establishment of a special fund to be known as the Peace Fund with the objective of providing the necessary financial resources for peace support missions and other operational activities related to peace and security in Africa. Article 3 of the PSC Protocol states that the Fund will finance the AU’s operational peace and security activities.

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.