Why Are US, Japan Fighting Africa’s Initiative To Fund Its Security Missions?

Uganda is imploring the United Nation’s Security Council to reconsider its decision of exiting peacekeeping troops from Somalia by 2021. Kampala argues whereas it is paramount for the Somali military to provide security to their integral territory, their capacity is not yet at levels to consolidate gains since 2007 when Uganda became the first troop contributing country there, after departure of American troops in (NOT2013), its 2003. Yet Uganda cannot logistically sustain its presence in Somalia beyond the time frame by donors. They are now saying it’s time for exit; period!

Apparently, the United States and Japan are fighting a new African Union financial framework to raise its own funds for peace and security missions. Launched at the 27th AU Summit in Kigali, Rwanda, July 2016 the mechanism requires AU members to implement a 0.2% levy on eligible imports for, among others, execute the aforesaid purposes and programs. It is anticipated to raise $1.2b—which is $4.2b more than AU’s annual budget of $700 million. In a major shift, more than 40% of the AU’s budget this year, is sourced from this fund. Only 5% was obtained from the continent in 2015 before implementation of the new initiative.

Surprisingly, both Washington and Tokyo have responded with protests. They have written to AU and particular African nations questioning the compatibility of the levy with the General Agreement on Tariff and Trade (GATT) as well as the World Trade Organization (WTO) rules. They legitimately cite provisions that stop the introduction of new duties outside the WTO schedule under GATT. They also mention the risk of fees that are not commensurate with direct protectionism under GATT.

However, both nations as well as other world major economies know very well how the new African approach can be implemented without causing infringing on existing international frameworks. But they won’t say it—suggesting they would rather, the new initiative dies, so that Africa remains dependent on donors in Europe, Asia and America!

So far 20 African countries are participating in the initiative —including Rwanda, Kenya, Ethiopia, Chad, Djibouti, Guinea, Sudan, Morocco, Congo Brazzaville, Gambia, Gabon, Cameroun, Sierra Leon, Ivory Coast, Ghana, Benin, Malawi, Senegal, Mauritius and Seychelles. Whereas South Africa and Egypt are looking for risk-free approaches of contributing, more than 30 other members are yet to take a step.

Now this triggers fears. Due to American and Japanese interventions some African countries might be intimidated, the same way Washington made them embrace its newly opened embassy in Jerusalem even though they had, a few months back in December 2017 abstained from supporting a US-sponsored motion at the UN seeking to recognize Jerusalem as Israel’s capital. Out of the 33 countries that attended the embassy opening this month, 12 (36%) were African—including Angola, Cameroon, Republic of Congo, Democratic Republic of Congo, Ivory Coast, Ethiopia, Kenya, Nigeria, Rwanda, South Sudan, Tanzania and Zambia. This followed a Washington threat to withhold aid toward countries that don’t support it at international fora.

Yet, even without external ideas for the new levy, Africa has several home tailored approaches to pick from. For example, some African nations can adapt the Kenyan model. Nairobi is already remitting to the continental fund, drawing from a preexisting special account that does not in any way encumber with international provisions. Its approach circumvents increase to the overall costs of importation. Kenya’s Article 7(2) of the 2016 miscellaneous fees and levies act, had imposed an importation declaration fees of 2%. From these collections, 10% is deposited into the fund established under the public finance management act. And from this Kenya proudly contributes to the new AU’s peace and security fund. This is purely a model from already exiting frameworks within the confines of GATT and WTO.

This Financial Year, the AU expects to collect $318.3m up from $205.1m in 2017 that was a significant improvement from $131.1m collected in 2015 before the new mechanism. The funds are to be spent on deployments in flashpoints such as Mali, Burundi and Central African Republic as well as emergency situations like Ebola in DRC, West Africa and Cholera in Uganda.

Additionally, the newly launched African Continental Free Trade Area (AfrCFTA) in Kigali, Rwanda, March 13, makes the levy compliant with WTO rules as goods will be levied on by this economic zone as a single unit.

By Swaib K Nsereko
Lecturer, Department of Mass Communication, Islamic University in Uganda and National Coordinator, Moral Reform Movement (MRM)