AU Peace Fund sees “unprecedented” momentum in attracting resources

The African Union Peace Fund, traditionally reliant on external donors and public institutions for financing, is now experiencing a surge in interest and contributions from Africa's private sector, state-owned enterprises, and multilateral financial institutions. This growing momentum marks a significant shift, underscoring the recognition that peace is not solely a political matter, but a fundamentally economic one. Ms Dagmawit Moges Bekele, Director of the African Union Peace Fund, highlighted the increasing engagement of private sector entities and financial institutions in conflict prevention efforts, emphasizing the pivotal role of peace and stability as essential foundations for investment and economic growth across the continent. In a recent interview with CNBC Africa, Ms Bekele discussed the factors driving this renewed momentum within the peace fund. She pointed out that African private sectors and financial institutions are increasingly grasping the importance of peace and stability as prerequisites for both securing existing investments and attracting new ventures. As a result, these entities are showing interest in contributing to the AU Peace Fund. Notably, pledges totaling 219 million have been received from private sector companies, multilateral financial institutions, and public enterprises within the continent. One key aspect of the fund's engagement with multilateral financial institutions is the introduction of innovative financing mechanisms and partnerships. By focusing on conflict prevention rather than reactive measures post-conflict, these institutions are recognizing the value of investing in sustainable peace. Additionally, the establishment of a robust governance structure, including a Board of Trustees and an Independent Evaluation Group, ensures transparency and accountability in fund disbursements, with the goal of effectively preventing conflict and promoting stability. Moreover, the AU Peace Fund's commitment to addressing the root causes of conflict, such as unemployment, aligns with the private sector's role in job creation and economic development. By investing in initiatives that tackle these underlying issues and promote negotiation platforms for conflict resolution, the private sector can play a vital role in fostering stability and preventing future conflicts. This collaborative approach signifies a shift towards inclusive partnerships that extend beyond traditional government-led efforts. Recent resource mobilization platforms organized by the AU Peace Fund have yielded positive outcomes, with various stakeholders coming forward to support the fund's initiatives. Pledges from multilateral financial institutions, private sector companies like Africari and United Bank of Africa, public enterprises, and even contributions from the AU Staff Association demonstrate a collective commitment to financing peace within Africa. The fund's efforts extend to engaging the African diaspora to participate in these contributions, aiming to establish an African-owned and African-financed fund that addresses the continent's challenges with internal resources. In conclusion, the African Union Peace Fund's shift towards attracting resources from the private sector and financial institutions reflects a broader recognition of the economic significance of peace and stability in driving sustainable development and investment across Africa. The growing momentum behind this initiative signals a new era of collaboration and shared responsibility in securing a peaceful and prosperous future for the continent.