President John Mahama says a major challenge facing the African Union (AU) in realising its full potential is its over-reliance on foreign communities for financial aid.

Speaking at a High-Level Retreat on AU Institutional Reforms, held at Kenya's State House in Nairobi on Monday, January 27, President Mahama said this issue must be addressed in order to grant the African Union financial freedom.

“The over-reliance on external partners for funding compromises the organisation’s independence and its ability to set its own agenda,” he said while addressing the heads of state.

He suggested that the Union should prioritise “the implementation of the Kigali decision on financing the Union, which must be expedited.”

Mr Mahama added, “A self-reliant African Union is not just a vision we have; it is an imperative we must achieve.”

The two-day retreat is designed to allow state leaders to reconsider how to revitalise and strengthen relationships among the various AU members.

This is Mr Mahama's second trip abroad since assuming office on 7 January.