Financial services firm Standard Bank has signed an agreement to make a total $1-million contribution over the next five years to the African Union Peace Fund (AUPF) to help the AU in its resource mobilisation efforts for peace across the continent, says Standard Bank Africa regions CE Yinka Sanni.

Development finance institution the African Development Bank estimates that 85% of Africa's 1.3-billion people live in countries facing conflict or in neighbouring nations affected by post-conflict situations.

As a result, the AU has intensified its efforts to promote peace through preventive actions.

“Peace in Africa is paramount. It reduces country risk premiums, facilitates ease of doing business and lowers the cost of capital. A stable business environment inspires market confidence, safeguards assets and investments from conflict-related risks, and enables businesses to expand their market reach and explore new growth prospects,” Sanni says.

Anticipated reductions in trade barriers through the African Continental Free Trade Area will allow companies to access previously untapped markets with a lower likelihood of supply chain disruptions, he highlights.

“The Standard Bank Group is committed to promoting sustainable development and improving the quality of life throughout Africa. The agreement underscores our commitment to fostering a stable and prosperous continent where economic growth is firmly rooted in peace and security,” he adds.

“By aligning our goals with the objectives of the AUPF, we demonstrate our dedication to making a positive impact on the continent. The donation also aligns with our bank’s strategy and our positive impact approach to supporting Africa’s growth,” says Stanbic Bank Ghana head of risk Felicity Sampong.

“It also reinforces our relationships with relevant intra-African entities, governments and institutions,” she says.

The AUPF, established in June 1993, serves as one of the operational tools to finance peace and security activities within the AU. Its primary focus is on conflict prevention through mediation and diplomacy.

Its goal is to enable the AU to fully finance mediation and preventive diplomacy activities, support institutional readiness and capacity, maintain a crisis reserve facility, and fulfil its commitment to financing 25% of its peace operations budget.

The AUPF is an integral part of the African Peace and Security Architecture and underwent revitalisation in 2018 to ensure its positive contribution toward achieving Africa’s Agenda 2063 vision for a peaceful, prosperous and united continent.

The revitalisation aimed to reduce the level of dependency, and regain ownership, of the peace and security agenda. The revitalisation saw increased member State contributions to the fund, and also saw enhanced governance and management arrangements for the fund.