Speech:
Perth - 2 September 2009
Africa Down Under Conference Dinner
I wish to begin by extending a warm welcome tonight to our Ministerial guests from Africa:
- the Hon Mrs Susan Shabangu, Minister of Mineral Resources, South Africa
- the Hon Mr Ahmed Haj Ali, Minister of Mines, Eritrea
- the Hon Mr Collins Dauda, Minister of Land, Mines and Forestry, Ghana.
I also welcome representatives from Australia's federal and Western Australia parliaments - the Hon Gary Gray, Parliamentary Secretary for Regional Development and Northern Australia, Mr Michael Sutherland MLA, Deputy Speaker, WA Legislative Assembly, representing the Premier and Mr Bill Johnston MLA, representing the Leader of the Opposition.
I welcome to Perth High Commissioners from a number of African countries:
- HE Dr Christopher James LUKABYO, High Commissioner for Uganda
- HE Prof. Sunday Oluwadare AGBI, High Commissioner for Nigeria
- HE Mr Lenin Magigwane SHOPE, High Commissioner for South Africa.
We are also joined this evening by five of the six Australian Ambassadors and High Commissioners in sub-Saharan Africa.
- HE Ms Ann Harrap, Australian High Commissioner in Pretoria, South Africa
- HE Ms Lisa Filipetto, Australian High Commissioner in Nairobi, Kenya
- HE Mr Jeff Hart, Australian High Commissioner in Abuja, Nigeria
- HE Mr John Courtney, Australian Ambassador in Harare, Zimbabwe
- HE Mr Billy Williams, Australian High Commissioner in Accra, Ghana
I also welcome the significant number of senior African officials attending Africa DownUnder who are present here this evening.
I also acknowledge Australia's Senior Trade Commissioner for sub-Saharan Africa, Mr Greg Hull.
Also joining us tonight are leaders of Australia's mining industry in Africa with representation from around fifty companies.
I thank all of you for your participation.
I particularly thank Coffey Mining, for its generous support in sponsoring tonight's function.
Coffey Mining, represented this evening by Mr Rod Reeves, Chief Operating Officer, Asia Pacific, provides consultancy and operational support services to the mining industry in Africa, Asia and North and South America.
Since coming to office, the Government has made the point that Australia has historically neglected its relationship with the continent and the countries of Africa and that Australia has not given Africa the priority it requires and deserves.
I underscored this when I visited in Addis Ababa in January this year, becoming the first Australian Foreign Minister to attend an African Union Foreign Ministers' meeting.
The same criticism cannot be made of the Australian companies in the minerals and petroleum resources industry, who have for many years been very active on the continent of Africa.
It is the people in this room who have been leading Australia's engagement with Africa.
This evening is testament to the significance of Australia's involvement in Africa's natural resources sector.
Current and prospective Australian investment in Africa is estimated at US$20 billion.
There are over 300 Australian companies active across more than 30 African countries.
The breadth and depth of Australia's commercial engagement in Africa is now very impressive. We now see Australians involved in areas as diverse as gold in Eritrea, platinum in South Africa, coal in Madagascar, copper in Zambia, uranium in Namibia and diamonds in Botswana.
The stories of early Australian exploration work in Africa are remarkable. With little financial backing and few resources, pioneering Australian companies started their work in often harsh and isolated conditions.
A number of these initiatives led to first-class large-scale mining operations that continue to underpin economic growth and community development across Africa.
Australia is committed to strengthening its engagement with Africa, through trade and investment, development assistance and peace and security cooperation.
This evening we will focus on trade and investment links.
Many African Foreign Ministers tell me they wish to strengthen their minerals and petroleum resources industries, and that they look to Australian expertise and investment to do that.
The Australian Government and Australian companies are committed to working closely with African Governments to ensure that Australian investment maximises the benefits for host African countries.
This is already occurring through local employment, training and skills development, local procurement of equipment and technology, community development, infrastructure and service provision, and sensible environmental management.
The Australian Government is also committed to supporting the efforts of Australian companies in Africa.
Austrade recently established new Business Development Managers in Ghana and Kenya, in addition to offices in South Africa, and Libya.
Both the Government and Austrade are committed to maximising the business opportunities presented by the significant mineral resources conferences Mining Indaba in South Africa in February next year and Africa DownUnder this week.
We are however all too well aware of the adverse impacts of the global economic crisis and falling commodity prices on the minerals and petroleum resource industries and economic growth in Africa.
The global crisis has affected Africa in a number of ways.
Demand for African exports has fallen. Commodity prices, government revenues and remittances from abroad have fallen.
Tighter global credit and greater risk aversion have reduced levels of foreign investment and made trade finance more expensive.
As a result, it is expected that economic growth in Africa in 2009 will slow to less than three per cent.
However, we must not lose sight of the positive, longer term trends we have been witnessing in African economies.
Prior to 2008, Africa secured valuable economic gains with five consecutive years of economic growth exceeding 5.5 per cent.
While high commodity prices played a significant role in this growth, improved economic governance also had an impact, including more prudent macroeconomic management.
There is still more to be achieved on this front.
Africa Down Under presents a significant opportunity to explore further ways of expanding Australian involvement in Africa's minerals and petroleum resources industries in ways that promote mutually beneficial sustainable economic growth.
Africa's relevance and importance for Australia is growing, through business, education and people-to-people links.
Australia, for its part, is absolutely committed to strengthening those links further, as a friend and a partner.
The Australian Government wants to build on our existing business, education and people-to-people relationships, and to contribute our expertise and experience to the development, security and prosperity of Africa in this century.
I wish you every personal success at the Conference and the industry in Africa and in Australia every success for the future.