African Union Urged to Break Free from Foreign Funding Dependency
African Union Urged to Break Free from Foreign Funding Dependency

African Union Urged to Break Free from Foreign Funding Dependency

Marrakech, Morocco, 2 June 2025 –

The African Union (AU) faces a critical challenge in achieving true sovereignty, with 70% of its $650 million annual budget funded by European nations, according to Mo Ibrahim, founder of the Mo Ibrahim Foundation. Speaking at the Ibrahim Governance Weekend in Marrakech, Ibrahim, in conversation with former AU Commission President Moussa Faki Mahamat, called this reliance a “disgrace” and urged African nations to take control of their continental body’s finances. “When foreigners fund us, they are ‘development partners’. Then tomorrow they are colonizers and imperialists. We have to be serious. It’s either we have an African Union and fund it, or we all go home,” Ibrahim stated bluntly.

Professor Kingsley Moghalu OON, a prominent Nigerian economist and former Deputy Governor of the Central Bank of Nigeria, echoed Ibrahim’s sentiments on social media, questioning why African countries fail to fund the AU Commission. Moghalu, who holds the Nigerian National Honour of Officer of the Order of the Niger (OON), described the continent’s dependency as a “sick” mentality, pointing to the troubling example of the AU Headquarters in Addis Ababa, funded by China and later found to be comprehensively bugged. This revelation, reported in 2018 by Le Monde, exposed hidden microphones and data-siphoning systems, raising serious concerns about foreign influence over African governance.

The AU’s funding model has long been a point of contention. Established in 2002 to promote unity and development, the organisation relies heavily on external donors, with the European Union and its member states covering a significant portion of its budget. Only a handful of African nations—such as Nigeria, South Africa, Algeria, and Egypt—contribute substantially, while many others struggle to meet their financial commitments. This stems from a combination of economic constraints, weak governance, and a lack of political will.

Moghalu, who now serves as President of the African School of Governance (ASG), argues that this dependency undermines Africa’s autonomy. In a 2024 article for Project Syndicate, he highlighted the need for home-grown institutions to equip African leaders with the skills to address governance challenges, reducing reliance on external systems. Economic mismanagement and corruption in some African nations divert resources that could fund the AU, while others prioritise domestic needs over continental obligations.
The historical context also plays a role. Colonial legacies and post-independence aid structures have entrenched a mindset of expecting external support. As Moghalu noted, this mentality is compounded by incidents like the Chinese-funded AU Headquarters, which symbolise the risks of foreign involvement. The bugging scandal, uncovered after years of undetected surveillance, underscored how dependency can compromise security and sovereignty.

African leaders face several hurdles in reducing reliance on Western and other foreign powers: Many African economies are small or heavily indebted, limiting their ability to contribute to the AU. Wealthier nations like Nigeria, despite their potential, grapple with internal challenges such as poverty and infrastructure deficits. Corruption and inefficiency drain public funds. Moghalu, in a 2021 interview with The Africa Report, described Nigeria’s economic management as “shambolic,” a sentiment applicable to other nations where resources are mismanaged. The AU’s 54 member states often prioritise national interests over collective goals. Disagreements on funding formulas and sanctions for non-paying members hinder progress. Foreign donors, while providing funds, often attach conditions that align with their interests. This dynamic, as Ibrahim warned, risks rekindling perceptions of neo-colonialism.

To achieve financial independence, African leaders must adopt bold reforms. Moghalu advocates for strengthening governance through education and accountability, as seen in his work with the ASG, which aims to train leaders in Afrocentric public policy. Proposals include increasing contributions from economically stronger nations, imposing levies on trade or air travel, and improving domestic revenue collection to fund the AU.

Ibrahim’s call to action resonates with a growing sentiment: Africa must own its institutions to control its destiny. The AU has made strides, such as the 2016 decision to implement a 0.2% levy on imports to fund its budget, but implementation remains uneven. Until African nations fully embrace self-reliance, the continent risks remaining vulnerable to external agendas.
As Moghalu succinctly put it, “The African mentality of dependency on the ‘kindness’ of strangers is really sick.” The time for change, it seems, is now—or the AU may indeed have to “go home.”

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