The financing of a joint Africa-EU development initiative could be headed for an operational shift as leaders press for an independent Pan-African kitty to bankroll projects launched under it.

African leaders want the Joint Africa-EU Strategy (JAES) funded through a distinct scheme in place of the current system where it relies on contributions from other supporting kitties by the European Commission.

"It is our strong conviction that a dedicated Pan African envelope is now not only necessary but also a top priority that will go a long way in facilitating and ensuring effective implementation of the strategy," Mr John Shinkaiye of the African Union Commission said in a statement ahead of Wednesday's joint 13th AU-EU ministerial troika meeting in Addis Ababa.

The EU's funding for international co-operation with Africa has over the years mainly come through three geographically-based financing instruments including the European Development Fund (EDF) that caters for African nations under African Caribbean and Pacific(ACP) group.

EU's international development pacts for the continent have also been funded through the Trade and Development Cooperation Agreement(TDCA) that covers projects in South Africa while another kitty, the European Neighbourhood Policy Initiative(ENPI) caters for programmes in the five North Africa countries.

But in a bid to boost efficiency, African leaders and their EU counterparts in 2007 moved to launch the JAES to mainly tackle non-trade related aspects of development such as democratisation, climate change, migration, science and technology, peace and security as well as regional integration among others.

But lack of a streamlined financing arrangement has threatened to derail the implementation of the JAES, hence the latest drive by Africa leaders for a review of its funding structures.

"There is an urgent need to address the financial constraints hampering the implementation of the joint strategy and action plan. We need to be innovative and resourceful in this regard. I suggest that while looking on how best we can utilise existing instruments," Mr Shinkaiye said.

Mr James Mackie, an official with the European Centre for Policy Management(ECPM) supported the creation of the Pan-Africa envelope saying it would help in enhancing predictability in financing.

"The clear advantage of a financial envelope dedicated to funding pan-African programmes is that it could be set up to meet the specific needs of the work and organised in a way that was in line with the institutions on both sides, that is in the AU and in the EU," he said in a presentation to participants at a preparatory session ahead of the AU-EU ministerial conference.

He further stated: "The most important advantage, however, is that it would give AU officials and AU member state committees much clearer control and responsibility over the funding the EU puts at their disposal. There would no longer be any need to rely on the goodwill of officials from the Caribbean and Pacific to approve grants,"

In a proposal, the ECPM said the African kitty could be created through several options including having it as part of the EU budget's Development Cooperation Instrument(DCI).

"The most straightforward approach would probably be for the ACP and EU to formally recognise the AU as one of the regional organisations which should receive a regional indicative programme from the EDF. This does not require a change to the Cotonou Agreement, but simply an agreement that the AU is a duly mandated regional organisation to receive funding for a regional programme," the centre said.

It said once this was done the EC would then be able to allocate funding for an AU regional indicative programme on the same basis as it does for the African regional economic communities such as the Common Market for Eastern and Southern Africa(Comesa), the Economic Community of West Africa States(ECOWAS) and Southern African Development Community(SADC).

An authorising officer would then be nominated from within the AU to spearhead programming and allocation of funds to various projects.

"The time now seems ripe for concrete action if the EU is serious about promoting the continental integration agendas triggered by the AU," Mr Mackie said. The EU is expected to give concessions on the demands for a Pan-African fund to avoid jeopardising other parallel ongoing negotiations for new economic partnership agreements(EPAs).