We, the Committee of Fifteen Ministers of Finance (F15), under the Chairpersonship of Honourable Ukur Yatani, Cabinet Secretary of the National Treasury of the Republic of Kenya, on behalf of Honourable Tahir Hamid Nguilin, Chairperson of the Committee of Fifteen Ministers of Finance and the Minister of Finance and Budget of the Republic of Chad, in our Annual Retreat held on 13-14 June 2022 in Rabat, Kingdom of Morocco, under the theme ‘Beyond COVID-19 pandemic and the Russia-Ukraine Conflict: Enhancing the Resilience of African Economies and Financial Sustainability of the African Union’:

1. Express our profound gratitude to Honourable Mrs. Nadia Fettah, Minister of Economy and Finance, and the Government of the Kingdom of Morocco, for graciously hosting the Annual Retreat of the F15, including the warm hospitality and conducive environment to engage in pertinent discussions on enhancing the resilience of African economies in the face of multiple economic and social challenges and as well, hold constructive debates on the financial sustainability of the African Union.

2. Appreciate the presence of Her Excellency Dr. Vera Songwe, Under Secretary General and Executive Secretary of the United Nations Economic Commission for Africa, His Excellency Mr. Wamkele Mene, Secretary General of the Secretariat of the African Continental Free Trade Area (AfCFTA), His Excellency Dr. Donald Kaberuka, African Union High Representative on Financing the Union and the Peace Fund, Ms. Yacine Fal, Acting Vice President for Regional Development, Integration and Business Delivery and Ms. Hassatou N’Sele, Acting Vice President for Finance and Chief Financial Officer, both of the African Development Bank Group, which continues to reaffirm that deeper cooperation and synergistic collaboration between the African Union, the United Nations Economic Commission for Africa, and the African Development Bank Group, remains an imperative for the enhanced coordination and mutual support required for achieving inclusive and sustainable development in the context of the African Union’s Agenda 2063 and the 2030 Agenda for Sustainable Development.

3. Recalling the Decision on self-reliance adopted by the Assembly in June 2015 in Johannesburg, South Africa, which recognized that to achieve the goals set out in Agenda 2063, Member States must take practical and concrete measures to finance the budget of the African Union, we commit to reinforce this determination by remitting Member States assessed contributions in a timely manner.

4. Further recall the Kigali Decision 605 of July 2016 on Financing the African Union through which the Assembly adopted a uniform 0.2 percent import levy mechanism to mobilize the requisite financial resources that would support Member States to sustainably and predictably, fulfil their financial obligations to the Union for the achievement of our development goals. To this end, we call upon the African Union Commission to intensify technical and advisory support to Member States to address the pending concerns of the alignment and harmonization of the import levy mechanism with their national laws, including alignment with the various bilateral and multilateral trading systems, bearing in mind the flexibility stipulated in Assembly Decision 733 of February 2019.

5. Remain cognizant of the enduring and compounding economic and social challenges occasioned by the COVID-19 pandemic, and exacerbated by the Russia-Ukraine conflict, and commit to foster more effective cooperation within and across our respective jurisdictions by intensifying efforts to build economies that are more resilient to food insecurity, severe price distortions in the commodity markets and disruptions in the supply chain of petroleum products and fertilizers among other strategic goods. We further recognize the particular importance of coordinated efforts to mobilize financial and technical resources required for the accelerated improvement of health care systems and services, including substantial investments towards the elimination of high-burden diseases such as malaria, tuberculosis and HIV, and the swift and comprehensive management of pandemics.

6. Reaffirm and stress the importance of the African Union Development Agency (AUDA-NEPAD) and the AfCFTA, to promote inclusive economic development and structural transformation of African economies, as well as advancing the cause of regional integration. AUDA-NEPAD and the AfCFTA promise multiple benefits ranging from promotion of industrialization and enhanced value-chain systems in the critical sectors of agriculture, manufacturing, energy, and services, to rapid development of infrastructure and digital technologies, human capital development and the generation of decent jobs opportunities, including its latent potential to shield the continent against pressures from unprecedented global economic, political and health crises.

7. Commit to strengthen our collaboration with the African Union Commission and deepen engagements to support the budget and financial reforms aimed at attaining the highest fiduciary, transparency, and accountability standards in the utilization of the financial resources availed for the implementation of the various development programs. In that regard, we commit to reinforce the ongoing reforms with a robust tri-annual review of the Union’s financial management, budgetary and accountability principles and recommend periodic improvements, including through a budget performance assessment mechanism to be set in place by the Committee.

8. Pledge to support the role of Regional Development Financial Institutions in the global financial architecture, as they leverage their collective financial capacities to support the implementation of national and regional development plans, including support to initiatives that would build the resilience of Member States to shocks triggered by economic, social, and political challenges. Also call for the expedited operationalization of African Financial Institutions which are key to accelerating the continent’s economic and regional integration including their focal role in the mobilisation of domestic resources for development programs and better management of the continental financial sector.

9. Further recognize the imperative to close the development financing gaps in the critical areas of agriculture, health, education, infrastructure, research and development, and sustainable environment management including climate change mitigation and resilience, and therefore commit to continue coordinated engagements across the public and private, domestic and international spheres, to mobilize these needed financial resources, including encouraging the reallocation of Special Drawing Rights from the developed to developing nations.

10. Commit to strengthen reforms at the national level that would stimulate development friendly and quality foreign direct investments, particularly as it relates to simplified and stable tax systems, transparent and accountable administrative systems and processes, strong legal institutions, and skilled and affordable labour markets, among others. This should be underpinned by investments in digital technologies and infrastructures that foster efficient and effective administrative systems. By the same token, we commit to reinforce measures that curb illicit financial flows (IFFs) that drain from the continent of Africa, substantial financial resources paramount for the economic and social development, and which remains a key undermining factor to the attainment of the goals and aspirations of Agenda 2063. IFFs continue to hamstring development efforts, exacerbate inequalities, and aggravate instabilities, plunging a significant population of Africa into deeper destitution.

11. Call for renewed vigour on the part of Member States to address the longstanding concerns of inequity and none-access to public services, inefficient and ineffective public institutions, and the exclusion of benefits accruing from the continent’s vast wealth of resources, all of which considerably constitute the root causes of conflicts and civil unrests that stagnate or reverse Africa’s development gains and undermine durable peace and security. We further emphasize the need to optimize revenues from mineral resources primarily through in-country beneficiation, including the harmonisation of fiscal regimes and royalties along value chains.

12. Underscore the importance of multi-dimensional efforts and mechanisms for conflict prevention and resolution, which emphasize and promote dialogue-centred approaches, and equally requiring adequate, timely and sustainable financing. As such, we commit to continue resourcing the revitalized Peace Fund and urge the African Union Commission to continue supporting its relevant governing structures to sustain the highest standards for its operationalization, including support on enhanced coordination and cooperation in policy planning, adoption, and implementation.

ENDS.