This report offers a preliminary assessment of the New Africa Initiative within the context of the transformation of the OAU into the AU. It identifies and summarizes essential new aspects advocated, critically examines the degree of realism and points to possible limitations. The analysis also considers first reactions to the initiatives, reflects on the perspectives and includes the full texts of both the New Africa Initiative and the Constitutive Act of the African Union, illustrating the commitment of Africa's policy makers to address the political and economic challenges.