AfDB backs African Union peace fund revitalisation

The African Development Bank (AfDB) has reaffirmed its strong support for the revitalization of the African Union (AU) Peace Fund, pledging continued implementation of innovative strategies to address fragility and build resilience across the continent.

The Fund, which has garnered nearly $400 million primarily from member state contributions, is a crucial mechanism for promoting peace and stability in Africa.

During a high-level meeting on Saturday, held on the sidelines of the AU’s 6th Mid-Year Coordination Meeting in Accra, Mrs Marie-Laure Akin-Olugbade, the AfDB’s Vice President for Regional Development, Integration, and Business Delivery, emphasized the Bank’s commitment to fostering peace in Africa.

"Our initiatives not only drive economic growth but also address the root causes of conflict by promoting inclusivity and empowering marginalized groups," she stated.

Akin-Olugbade highlighted several key initiatives by the AfDB, including the issuance of Security Indexed Investment Bonds.

These innovative financial instruments are designed to mobilize resources for peace building and development.

Additionally, the Bank is rolling out Youth Entrepreneurship Investment Banks to empower young entrepreneurs and providing robust support for women-led businesses through the Affirmative Finance Action for Women in Africa (AFAWA) initiative.

"These programs foster economic stability, improve livelihoods, and bolster social inclusion," she stressed.

Moussa Faki Mahamat, Chairman of the African Union Commission, announced that the Peace Fund is close to reaching its first target of $400 million, thanks to the contributions from member states.

"This achievement reflects our unity and determination," Mahamat said, urging continued momentum to build on these successes.

He called on the private sector, multilateral financial institutions, state-owned enterprises, high-net-worth individuals, and philanthropists to support the Fund, emphasizing that "peace is the business of all of us."

Dagmawit Moges, Director of the AU Peace Fund, announced that the organization is setting up an independent evaluation group to assess Peace Fund disbursements.

This group will include representatives from each region of Africa, as well as representatives from the AfDB and Afreximbank.

"We are implementing a robust strategy to secure commitments from the public sector, multilateral institutions, residents, and the diaspora," Moges said.

She highlighted recent successful engagements with the private sector and other organizations in five member states—Kenya, Egypt, Nigeria, South Africa, and Cameroon.

"These engagements have led to stronger partnerships supporting the Fund’s activities," she noted, also commending the AU Staff Association for voluntarily contributing to the Fund.

The meeting brought together ministers from African member states, diplomats, business leaders, private sector operators, representatives of pan-African organizations and regional economic blocs, commercial banks, and development finance institutions. It served not only as a platform to reinvigorate resource mobilization for the Peace Fund but also to showcase the vibrant culture of a self-determined Africa.

"This event has demonstrated the unity and determination of our continent to achieve peace and stability," said Akin-Olugbade.

The event featured music, dancing, and tributes to leading pan-Africanists, including Dr Kwame Nkrumah, Ghana’s first president who led the country to independence.

The strong support from the AfDB and the collaborative efforts of various stakeholders highlight a significant step towards ensuring lasting peace and development in Africa.

With continued commitment and innovative strategies, the revitalisation of the AU Peace Fund promises a brighter, more stable future for the continent.