Thursday, July 21, 2016

African leaders agree on import tax to fund AU diplomatic plan

FLORENCE MUGARULA
AFRICAN leaders have agreed to impose tax on all imported products to finance African Union (AU) programmes and push the continent’s diplomatic agenda.
The new system, which is set to commence next year, aims at enabling AU to make its own decisions without donor countries’ conditions or intervention to African internal matters.
Foreign Affairs, East African, Regional and International Cooperation Minister, Dr Augustine Mahiga, told reporters in Dar es Salaam yesterday that African leaders reached the decision during the 27th African Union summit (AU) in Kigali, Rwanda.
He said the African leaders had agreed that each country must contribute 0.2 per cent of tax collections from imported goods. He said the money would be deposited to the Central Bank of a given country - and later to the AU account.
Dr Mahiga said African leaders had realised that donor countries have been intervening in AU’s decisions because the body is financially dependent. “It is obvious that economic dependency has been weakening AU especially in making its decisions, donor countries have been intervening with AU decisions,” he stressed.
The minister said that about 70 per cent of the AU budget was foreign funded. According to Dr Mahiga, African leaders have listed instruction to every member country as one of the measures to get rid of foreign funds in running internal businesses.
Some countries have been delaying to pay annual fee as required. Under the new agreement, each member country will be required to pay its entire annual fee on time, he stated.
The minister noted that African leaders stated that depending on external funding for the union’s budget is simply unacceptable and that Africa must assert its independence and sovereignty more robustly. AU needs the money to fund peace and security operations as well as for administrative costs, according to him.
Dr Mahiga said the proposal to cut donor funds was supported by all African leaders and that most of them perceived it as a revolutionary decision. “African leaders were happy with the decision, saying that depending on donors is a profound handicap and an impediment to the continent’s momentum,” stated Dr Mahiga.
At present, the 54-member bloc sources only 28 per cent of its half-billion dollar operational budget from its own members. In addition, it has to source an additional 750 million US Dollars for peacekeeping operations with the funding gap filled mostly by the European Union, United States, World Bank, China and Turkey.
On the AU Commission Chairperson’s election, Dr Mahiga said Tanzanians who wish to contest for the post are welcomed to register their names.
The AU Summit on Monday postponed to next January the election of AU Commission Chairperson, deputy chairperson and other 10 commissioners. The new chairperson of the AU commission will take over from Dr Nkosazana Dlamini-Zuma of South Africa, who has been the AU Chairperson since 2012.
Three candidates were running to win the position of AU Chairperson, Ms Specioza Kazibwe, former Ugandan vice-president, Ms Pelonomi Moitoi, Botswana Foreign Minister and Mr Agapito Mba Mokuy, Equatorial Guinea Foreign Minister.
During the first round of the election no candidate was able to attain two-thirds of the votes as Botswana candidate got 16 votes, Equatorial Guinea, 12 votes and Uganda’s candidate got 11 votes.
Dr Mahiga said yesterday that no single Tanzanian had shown interest to contest for any post in the past election, adding that Tanzania has a big chance to win the post. “Many people were asking why Tanzanians did not appear in the list of contestants. I would like to invite Tanzanians who wish to contest for any post to list their names for the January election,” he advised

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