(iv) Identify Africa-based rating agencies, develop
a set of clear policy options and strategies of
engagement with these agencies and submit
same for approval;
123. This indicates that, if the APRM is going to achieve
its aspiration of becoming fully reliant on African
funding, first, all countries that are in arrears need
to clear their debts within a reasonable period; and
second, the level of annual contributions needs to
be increased to at least USD 200,000.00 per
member state. In appreciation of this challenge, the
Revitalisation Committee has endorsed a proposal
from its members to raise the level of Member
States’ annual regular contributions from the
current USD 100,000.00 to USD 300,000.00.
(v) Develop benchmarking exercise between APRM
metrics and indicators and those used by rating
agencies;
(vi) Develop methods by which to evaluate and
report on the work of rating agencies vis-à-vis
African countries;
(vii) Identify Member State Champions for each
Flagship Project (one per region) to coordinate
the theme with a Member of the Panel.
124. Even then, we need to be realistic in our
expectations. Excessive and unsustainable reliance
on external sources of funding is a challenge faced
even by the AU Commission, which gets 96 per cent
of its programme budget from external partners (AU
Strategic Plan 2014–2017, p. 93). This experience
should teach us that raising the level of annual
membership contributions is not going to be a
panacea for our funding challenges. Accordingly,
our resource mobilisation strategy will need to be
multi-pronged, innovative and integrated into our
day-to-day activities.
Outcome 3: Resource Mobilisation and Financial
Management
120. The issue of political will and commitment
addressed in Outcome 2 above will manifest itself
in the willingness of member states to finance the
Mechanism on a sustainable basis. As a homegrown, unique and globally leading initiative, the
APRM is one of the most iconic inventions of our
continental organisation. Its founding fathers knew
that in order for this unique initiative to serve
African interests, and African interests alone, all its
costs must be covered from African sources. This
might, and indeed often does, pose serious
challenges in the short term but this is an aspiration
the APRM must remain loyal to, cherish and pursue
in every way possible.
125. With this broad objective in mind, we undertake to
pursue the following series of steps during the
period of the strategic plan:
(i) In order to have a clear break with the legacy
of doubts and uncertainties about the financial
management of the APRM Secretariat, the
APRM Secretariat will recruit a reputable firm
of auditors to carry out a comprehensive audit
of APRM accounts as well as the now defunct
APRM trust fund accounts and publish the
same on our website;
121. Assuming all members pay their dues, Member
State contributions would cover only about 50
percent of the APRM budget. The approved APRM
budget for 2016, for example, is USD 7,056,251.00.
On the other hand, if each of the 35 countries pays
the USD 100,000.00 they are obliged to pay
annually, that would leave in excess of USD 3.5
million to be covered from other sources. What is
worse, far too many countries have been in arrears,
in some cases for several years. Today, member
states owe the APRM well over USD 12 million.
(ii) Undertake an inventory of the state of national
contributions by member states, identify those
in arrears and, under the guidance e of the
Committee of Focal Points, approach the
countries in arrears to clear their debts within
a set timeframe;
(iii) Develop and submit for approval by the
Committee of Focal Points, and later by the
APRM Forum, options for revised membership
annual contributions;
122. Financial and technical support from strategic
partners has been instrumental in filling the funding
gap, but even this source has almost dried up of
late. The APRM Trust Fund, managed by UNDP,
commenced with 10 contributors including
development partners and member States, but
today it appears there is none.
(iv) Develop and submit for approval by the
Committee of Focal Points, and later by the
APRM Forum, a detailed strategy on how to
resuscitate and recapitalise the trust fund as a
matter of urgency;
–26–
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