The African Union Commision programmes and peace missions will be funded by the 54 member states with effect from June 2017, Rwanda’s Finance Minister Claver Gatete has said.
Gatete was speaking at the sidelines of the ongoing AU Summit in the Rwandese capital, Kigali.
Heads of state have approved a proposal to impose a tax levy on all eligible goods at a rate of 0.2 percent.
This will avail $1.2 billion to the AU annually, replacing almost 70 percent of external donor funding.
The earmarked collection of 1.2 billion U.S. dollars surpasses the previous budget of 427 million that was allocated for 2015/2016.
Gatete said the amount collected will fund 75 percent of the programs and 25 percent of peace missions in the continent.