USAU: AFRICAN UNION, UNECA HOLD PARTNERS DIALOGUE

UNCLAS SECTION 01 OF 02 ADDIS ABABA 002902 SENSITIVE SIPDIS STATE FOR AF/FO, AF/RSA, IO/UNP LONDON FOR PLORD PARIS FOR WBAIN E.O. 12958: N/A TAGS: PGOV PREL UN AU SUBJECT: USAU: AFRICAN UNION, UNECA HOLD PARTNERS DIALOGUE WITH DONORS THIS MESSAGE IS FROM USAU AMBASSADOR MICHAEL A. BATTLE. ¶1. (U) SUMMARY: From December 1-2, the AU and UNECA hosted a Partners Dialogue in Addis Ababa, bringing together 15 donor nations and other entities to discuss how to create a more strategic and equitable partnership between the AU/ECA and donors. Key themes that emerged included: the need for a strong Africa that engages in the broader global community; the desire to move from a donor-recipient dynamic to genuine partnership with a range of donors; financing mechanisms and the controversial option of budget support; and the vital importance of supporting regional integration and a continental vision. Conference participants reiterated their support for the AU and its initiatives, though precise mechanisms for implementing this support were not agreed upon. END SUMMARY. ¶2. (U) The African Union (AU) and the UN Economic Commission for Africa (ECA) held the first Partners Dialogue (previously called the Donor Support Group) in Addis Ababa from December 1-2. Fifteen donor nations participated, along with representatives from the European Union (EU),World Bank, African Development Bank, and New Partnership for Africa's Development (NEPAD). The need for a strong Africa that participates actively in the global community emerged as one of the conference's key themes, addressed by both AU Commission Chairperson Jean Ping and ECA Executive Secretary Abdoulie Janneh, as well as others. Janneh noted that Africa should have a say in international solutions to global problems such as climate change, governance, and peace and security issues. Consequently, he recommended that Africa be involved in international fora and become a recognized member of the Group of 20 (G-20). ¶3. (U) As the conference title suggests, the nature of the AU and ECA's partnership with donors was another key theme. The conference included sessions for the AU to present its strategic plan and for ECA to share its business plan, with the idea that this exercise would symbolize a turning point in donor relations by unveiling clear priorities upfront rather than allowing them to be donor-driven. Many donor nation representatives reiterated their support for the AU's priorities, and underscored the need to move from a donor-recipient dynamic to a genuine partnership based on mutual benefit and trust. ¶4. (SBU) Several speakers brought up the value of linking assistance to a country's comparative advantage. As examples, AU Commissioner for Economic Affairs Maxwell Mkwezalamba cited China's focus on infrastructure and India's on Information Communication Technology (ICT),an interesting comment given that neither country was present. Following the conference, several participants noted that certain donors were conspicuously absent, notably China, South Korea, and India. In a subsequent meeting of AU partners, Portugal indicated its annoyance at not having been invited to participate in the conference. Clearly, the Partners Dialogue not only raised the issue of the nature of AU/ECA partnerships with donors, but also of whom the donor category should include. ¶5. (SBU) In discussing partner cooperation, the issue of financing arose repeatedly. Certain countries, including Norway, Denmark, and the United Kingdom (UK),would like to move from project support to untied program and budget support, and they urge others to do the same. They argue that this approach lowers transaction costs, increases efficiency, and allows the African Union Commission (AUC) to have a flexible, yet predictable budget. Many nations, however, registered their apprehension, including Japan, Italy, and Finland, which wants to see proof of the AU's financial management accountability before considering such a measure. Due to internal regulations and funding mechanisms, partners such as Canada, the U.S., and the World Bank cannot agree to budget support at this time. AUC Deputy Chairperson Erastus Mwencha acknowledged that the AU is not ready to move to budget support yet in any case, as his organization does not have the human resources or administrative capacity to manage it. ¶6. (U) The importance of regional integration and AU/ECA collaboration with Africa's Regional Economic Communities (RECs) emerged as another key conference theme. Participants ADDIS ABAB 00002902 002 OF 002 agreed that RECs have a vital role to play in peace and security issues, trade, infrastructure development, and virtually all pan-African initiatives. Both Ping and Janneh spoke of the need for a continental vision that can be drilled down to regional and national levels. They noted that the EU was one of the few organizations engaged in long-standing partnerships with regional bodies, and encouraged partners to embrace a regional approach. (Note: Ping lauded the U.S. for its Peace and Security support, noting that the AU Mission in Somalia (AMISOM) would not have survived without it. End Note.) MUSHINGI