Rwanda took over the chairmanship of the African Union on January 1, with the tough task of steering the continental body away from heavy dependence on aid.

President Paul Kagame was elected chair last July to succeed Alpha Condé of Guinea.

Observers say other challenges include peace and security on the continent, political instability and faltering regional integration within different blocs.

President Kagame’s first task will be to see through the institutional reforms within the AU and the AU Commission to make it financially self-sustaining. He was given the task in July 2016 and he has since then worked with a group of experts to identify key areas of reform.

While addressing the 2nd Africa Business Forum in Sham el Sheikh last month, President Kagame said the reforms were well on course.

“The institutional reform of the African Union that is currently underway, with strong support from African leaders, is essential to getting these agreements fully operational so that our citizens can enjoy the benefits,” he said in reference to deals signed to grow the private sector and doing business on the continent.

He added that African countries need to make it easier to do business within and amongst themselves.

“Our continent has to catch up fast and compete globally. We can’t afford to waste opportunities because of unnecessary red tape and the associated delays. We should make it easier to do business with each other in Africa and integrate our markets to make them more attractive for investment,” he said.

However, regional blocs on the continent are currently going through integration challenges.

“There are issues within the EAC. Countries are not at par. There are issues between Uganda and Rwanda, Burundi and Rwanda, Tanzania and Kenya. The same can be said of SADC, which right now is not united due to political challenges,” a scholar at the University of Rwanda said.

Commitment

In a recent interview with on Rwanda Television, Rwanda’s Minister of Foreign Affairs Louise Mushikiwabo said reforms within the AU are progressing well with more than 20 countries already implementing national policies to raise revenue to go towards the AU.

Under the new self-financing mechanism, member states are obliged to levy a 0.2 per cent tax on eligible imports. If all member states committed to this, at least $1.2bn would be raised annually, enough to finance the AU’s activities.

Ms Mushikiwabo said that while this move is aimed at making the AU self-sustaining, it does not mean that the continental body will cut ties with donors.

“We will continue to work with the different partners we have been working with including the EU, the US China, Japan and others, but we are saying that it is important for Africa to foot the bill for AU activities. This is a key element of the reforms,” she said.

President Kagame wrote to African leaders last month giving them an update on the progress of the reforms.

There have been concerns, however, that some countries are dragging their feet in implementing the financing agreement.

President Kagame will also reportedly be pushing for an open border policy to effect the African Passport, which was launched in 2016.