Page 59 - AERC Strategic Plan 2 July2020

THE AERC 2020–2025 STRATEGIC PLAN

Consolidated and Modest Growth

The strategy budget depicts a modest phased growth with total programme requirements
of US$78.8 million as summarized in Table 3. This demonstrates a five per cent
increase from the previous 2015–2020 budget of US$75.0 million. To finance this level
of programme requirements, we have indicative projected income of US$73.4 million
as summarized in Table 7. In terms of the sources of support, as shown in Figure 3, it
is anticipated that 41 per cent will be realized from non-African governments, 25 per
cent from African governments and institutions, 13 per cent from foundations (including
private foundations), 18 per cent from international organizations, and 3 per cent from
other income (investment income, student fees, etc). The funding gap of US$5.4 million
is expected to be financed from the 2019/20 projected carry-over programme funds
of US$7.1 million (US$3.5 million is restricted to the GoK Capacity Building Project for
Policy Analysis).

Table 4: Financial requirements

Total direct programme costs make up 91 per cent of the projected strategy budget,
while programme overhead costs constitute 9 per cent of the budget. Strategic theme
1 – High Quality Research and Graduate Training – takes 60 per cent of the budget, as
this comprises both training and research activities. Theme 2 – Achieve Organizational
Sustainability – and Theme 3 – Greater Influence on Economic Policy – each constitute
10 per cent.

2020/21 2021/22 2022/23 2023/24 2024/25 Total Weight
Strategic Themes US$ US$ US$ US$ US$ US$ %
Strategic Theme 1: High Quality 9,626,776 10,596,228 9,572,128 9,138,786 8,524,464 47,458,382 60%
Research and Graduate Training
Strategic Theme 2: Achieve 1,162,203 1,710,732 1,775,060 1,695,944 1,413,947 7,757,885 10%
Organizational Sustainability
Strategic Theme 3: Greater 1,863,587 1,665,539 1,681,488 1,556,741 1,486,051 8,253,407 10%
influence on Economic Policy
Total Direct Costs 12,652,566 13,972,499 13,028,676 12,391,471 11,424,462 63,469,674 81%
Direct Programme Personnel 1,537,556 1,589,684 1,643,805 1,699,998 1,683,348 8,154,391 10%
Costs
Total Direct Programme Costs 14,190,122 15,562,183 14,672,481 14,091,469 13,107,810 71,624,065 91%
Shared Personnel Costs 659,925 679,722 700,113 721,117 742,750 3,503,627 5%
Programme Overheads 526,947 765,030 808,751 594,616 618,787 3,314,131 4%
Total Direct and Indirect Costs 15,376,993 17,006,935 16,181,345 15,407,202 14,469,347 78,441,823 100%
Capital Items 82,400 142,680 66,290 8,000 11,487 310,857 0%
Grand Total Strategy Costs 15,459,393 17,149,615 16,247,635 15,415,202 14,480,834 78,752,680 100%

Categories of Projected Expenditure

According to Table 4, the three major categories of projected strategy expenditure are:
capacity-building workshops and conferences, which account for 37 per cent; grants to

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