1. PRESENTATION ON THE REPORT ON AFRICAN UNION INSTITUTIONAL REFORM 28 MARCH 2018 1

2. OUTLINE OF THE PRESENTATION 1.BACKGROUND 2.IDENTIFIED KEY AREAS OF REFORM 3.RECOMMENDATIONS AND CONCERNS 4.JANUARY 2018 SUMMIT DECISIONS ON INSTITUTIONAL REFORM 2

3. BACKGROUND The introduction of issues related to self-financing, streamlining of Summits and the working methods of the African Union at the June 2015 Summit held in Sandton, precipitated discussions on AU Institutional Reform. The July 2016 Assembly of the African Union held in Kigali mandated President Paul Kagame of Rwanda to prepare a study on the institutional reform of the African Union (AU). President Kagame assembled an advisory team of 9 experts. One of the members of the team is former Governor of the Reserve Bank, Mr Tito Mboweni. 3

4. BACKGROUND (cont.) The report by President Paul Kagame entitled “The Imperative to Strengthen Our Union: Report on the Proposed Recommendations for the Institutional Reform of the African Union” was presented to the Retreat of Heads of State and Government in January 2017. It was subsequently adopted as Decision 635 (XXVI) “Outcomes of the Retreat of the Assembly of the African Union on the Institutional Reform of the African Union” by the AU Assembly on 31 January 2017 and became known as the “Kagame Report”. 4

5. IDENTIFIED KEY AREAS OF REFORM Over 30 recommendations were adopted and grouped into five main areas : 1.Focusing on key priorities with a continental scope and improve the division of labour with the Regional Economic Communities; 2.Realign AU institutions to deliver on priorities; 3.Connect the work of the AU more directly to the citizens; 4.Manage the business of the AU efficiently at both the political and operational levels; and 5.Sustainably finance AU activities 5

6. IDENTIFIED KEY AREAS OF THE REPORT The implementation of these key areas spanned across three phases :  Short term (0-6 months)  Medium term (6-12 months)  Long term (1-2 years) South Africa supports the reform of the AU institutions as it is aimed at making the organisation more self sufficient and independent. The reforms are also aimed at making the AU internal delivery systems more efficient and its programmes effective and impactful. 6

7. CONCERNS 1.Level of Representation at the Assembly The Report recommends that Member States’ representation during Assembly Sessions will be limited to the level of President, Vice President, Prime Minister or equivalent. However, the AU Constitutive Act makes provision for Heads of State and Government to be represented by their “duly accredited representatives” at the Assembly. The implementation of this recommendation would require the amendment of the Constitutive Act. 7

8. 2. Partnerships The Report proposes that the AU model which frames Africa’s participation in partnerships should be amended when engaging with strategic partners. It is proposed that a Troika (previous, incoming and outgoing AU Chairpersons), the AU Commission Chairperson with RECs Chairpersons represent the whole AU Membership. The challenge with this proposal is that the AU is in the process of finalising the Global Review on Africa’s Strategic Partnerships. The recommendation of the report is similar to that of the Banjul Formula. 8

9. 3. New Partnership for Africa’s Development-NEPAD The Report recommends that the NEPAD should be fully integrated into the AU Commission as a development agency. At the July 2017 Assembly, a decision (Decision 651) to “disband the NEPAD HSGOC and integrate NEPAD into the AU” Commission, was introduced for adoption by the Assembly. It was agreed that the discussions would be deferred to the January 2018 Assembly. The January Assembly decided to harmonise the outcomes of the HSGOC meeting and to continue consultations and to report to the Summit in June/July 2018 in Mauritania. 9

10. 4. Financing the Union The Report recommends for African Union’s financial stability and remains committed to continue honouring its assessed contributions. South African position However South Africa may not be able to implement the 0,2 % levy proposal in its current form as it is in in direct conflict with the South African Constitution’s provisions that all revenue collected by the State should be deposited into the National Revenue Fund. It is a violation of the WTO’s Most Favoured Nation (MFN) provision to discriminate against imports from non-African countries. 10

11. 5. Permanent Representative Committee (PRC) The Report recommends that the PRC’s rules and procedures should be in line with the mandate provided in the Constitutive Act. The PRC should facilitate communication between the African Union and national capitals, and act as an advisory body to the Executive Council, rather than a supervisory body of the Commission. South African position South Africa believes that the PRC should be allowed to perform all of its duties beyond an advisory role and those include monitoring the implementation of policies, and decisions and making recommendations to the Executive Council. 11

12. 6. ELECTION OF THE CHAIRPERSON AND THE DEPUTY CHAIRPESON OF THE UNION The Report recommends that only the Chairperson of the AUC be elected by the Assembly, and that the Chairperson of the AUC subsequently appoints the Deputy Chairperson and the Commissioners based on the principle of geographical representation. South African position South Africa believes that both competence and geographical representation should be key considerations in the appointment of Commissioners. 12

13. JANUARY 2018 SUMMIT DECISIONS ON INSTITUTIONAL REFORM The 2018 AU Summit adopted the following decisions:  That further consultations will take place on the matter of concern raised by Member States on Institutional Reform.  A sanctions mechanism to address non-implementation of AU decisions and polices.  Reform Troika shall be expanded to the Bureau of the Assembly and will collaborate with President Kagame in his capacity as Lead on the AU Institutional Reform process. 13

14. JANUARY 2018 SUMMIT DECISIONS ON INSTITUTIONAL REFORM  That fifteen (15) Ministers of Foreign Affairs, three per region, shall play an advisory role to the AU reform implementation process.  As of 2019, one ordinary Summit (Assembly) will be hosted.  Committee of 10 Finance Ministers (F10) will be expanded to the F15 and that for the purposes of adopting the budget, the Executive Council will be comprised of Ministers of Foreign Affairs and Finance. 14

15. THANK YOU 15