Major pledges propel African peace efforts at AU Peace fund gala

Accra, Ghana's bustling capital, was the epicenter of commitment and hope as key players in Africa's political leadership, private sector, multilateral financial institutions, state-owned enterprises, high-net-worth individuals, and billionaires gathered for the African Union (AU) Peace Fund event on Saturday, July 20, 2024.

Held at the prestigious Kempinski Hotel, this highly anticipated event aimed to rally support from crucial stakeholders to enhance the AU Peace Fund’s financial stability and further its mission of fostering sustainable peace across the continent.

The evening’s highlight was Afreximbank’s unprecedented pledge of USD 210 million over the next three years. This commitment, encompassing grants, technical assistance, a project preparation facility, and seed capital for peace and security initiatives, underscores Afreximbank’s unwavering dedication to fostering sustainable peace across Africa.

In his address, Afreximbank President Prof. Benedict Oramah emphasized the critical intersection of peace, humanitarian action, and development. “The peace we seek is not just the absence of conflict, but the presence of conditions that allow our economies to thrive,” he stated. “Our pledge of USD 210 million is a testament to our commitment to building a peaceful and prosperous Africa.”

Prof. Benedict Oramah’s powerful message of commitment set the tone for the evening, inspiring attendees to join the cause of peace and stability. His call to action resonated deeply, underscoring the essential role of the AU Peace Fund in driving Africa towards a future of peace and prosperity.

The event commenced with an inspiring cultural performance by Ghana-based Bambu Centre Productions, led by Playwright, Creative Entrepreneur and creator of Mansa World, Chief Abdul Moomen

In a welcome address, Mrs. Dagmawit Moges, Director of the AU Peace Fund Secretariat noted that it was an opportune time to look at how to involve the private sector in contributing to peace in Africa. 

“Tonight, we gather not only to celebrate our collective achievements but to forge new paths towards sustainable peace,” she said. “The revitalization of the AU Peace Fund is a testament to our shared vision of a peaceful Africa, and we are immensely grateful for the support of our partners and stakeholders,” she said. 

The AU Peace Fund, established by the Organization of African Unity (OAU) in 1993, has undergone significant reforms to become a more effective tool for promoting peace and stability. A pivotal decision in June 2015 by the Heads of State in Johannesburg, South Africa, laid the groundwork for the Fund's revitalization in 2018, transforming it towards self-financing mechanisms.

The African Union Commission, in partnership with Afreximbank, hosted the gala dinner themed: ‘Fostering Partnerships for Sustainable Peace in Africa’. The event marked the official launch of the revitalized Fund, with leaders advocating for innovative peace financing mechanisms to address Africa's security challenges.

In addition to Afreximbank’s substantial pledge, the Standard Bank Group, Africa's largest bank by assets, announced a commitment of $1 million to the AU Peace Fund. This includes an annual pledge of $200,000 over the next five years. The memorandum of understanding (MOU) for this pledge was signed by Felicity Osafo Sampong, Chief Risk Officer of Stanbic Bank Ghana, reaffirming the bank’s support for the AU Peace Fund and aligning with their mission: “Africa is our home; we drive her growth.”

Standard Bank Group's dedication to the AU Peace Fund underscores their ongoing efforts to foster stability and promote sustainable development across the continent. “By promoting peace, we lay the foundation for a more stable and prosperous future for all,” noted Felicity Osafo Sampong.

Many parts of Africa have been adversely affected by conflicts and insecurity, undermining cross-border trade and economic growth. These challenges have been exacerbated by global crises such as COVID-19, the climate crisis, and international conflicts, disproportionately impacting Africa and threatening to undermine the gains achieved over the last two decades.

Understanding the sources and causes of conflicts and insecurity, as well as policies for conflict prevention and management, is critical to ensure a protective shield against future crises. A coordinated approach from all stakeholders is required, and the AU Peace Fund is the conduit to achieve this. The Peace Fund has made remarkable progress in mobilizing almost US$ 400 million, yet the increasing security needs require that this be scaled up significantly. In the context of tightening fiscal space and the reduction in development assistance, the traditional reliance on member states' assessed contributions needs to be supplemented by other sources of financing.

The AU Peace Fund Dinner Gala was a resounding success, showcasing the critical need for innovative peace financing mechanisms and the importance of strategic partnerships in fostering sustainable peace across Africa. Afreximbank’s historic pledge and the substantial commitments from other stakeholders are significant steps towards achieving the Fund's goals. As Africa moves forward, the revitalized AU Peace Fund will play a crucial role in promoting peace, security, and stability, paving the way for a prosperous and peaceful continent.

H.E. Moussa Faki, Chairperson of the African Union Commission, noted that “the operationalization of the African Union Peace Fund and the adoption of the principle of financing African peacekeeping missions from perennial resources are part of significant sectoral progress. 

“The amplification of these advances could well, in time, usher in a new era of markedly reduced dependence on international partners for the demands of peace and the financing of peace support operations.”

H.E. Faki’s leadership and vision were pivotal in rallying the support and commitment needed to ensure the success of the AU Peace Fund, highlighting the importance of African-led solutions to the continent’s peace and security challenges.