Standard Bank Group - Africa’s largest bank by assets and with operations in 20 markets on the continent, signed a Memorandum of Understanding (MoU) with the African Union Peace Fund to help the African Union (AU) in its resource mobilization efforts for peace across the continent. The MoU was signed during the African Union Peace Fund High Level Resource Mobilization event held on July 20, 2024, at the Kempinski Hotel Gold Coast City in Accra, Ghana.
The agreement will see Standard Bank Group make a total contribution of USD 1 million over the next 5 years.
The African Development Bank (AfDB) estimates that 85% of the 1.3 billion Africans live in countries facing conflict or in neighboring nations affected by post-conflict situations. As a result, the African Union (AU) has intensified its efforts to promote peace through preventive actions.
Yinka Sanni, Standard Bank Africa Regions Chief Executive, highlighted the significance of this partnership. He said: “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. Anticipated reductions in trade barriers through the AfCFTA will allow companies to access previously untapped markets with a lower likelihood of supply chain disruptions.”
“The Standard Bank Group is committed to promoting sustainable development and improving the quality of life throughout Africa. Our purpose “Africa is our home, we drive her growth”, underscores our commitment to fostering a stable and prosperous continent where economic growth is firmly rooted in peace and security,” he added.
Felicity Sampong, Head of Risk of Stanbic Bank Ghana, who represented Standard Bank at the signing ceremony stated: “By aligning our goals with the objectives of the AU Peace Fund, 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. It also reinforces our relationships with relevant intra-African entities, governments, and institutions.”
The African Union Peace Fund (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. The AUPF is an integral part of the African Peace and Security Architecture (APSA) and underwent revitalization in 2018 to ensure its positive contribution toward achieving Africa’s Agenda 2063 vision—a vision of a peaceful, prosperous, and united continent.
In its quest to reduce the level of dependency and regain and ownership of the peace and security agenda, the African Union has made commendable progress in revitalizing the AU Peace Fund, evidenced in the increased member states contribution to the Fund, and the enhanced governance and management arrangements for the Fund. The endowment’s overarching goal is to enable the African Union to fully finance mediation and preventive diplomacy activities, support institutional readiness and capacity, maintain a crisis reserve facility, and fulfill its commitment to financing 25% of its peace operations budget.