Speech:
Perth - 3 September 2009
Africa Down Under Conference
Thank you, Bill Repard, Executive Chairman for Paydirt Media, for your invitation to address Africa DownUnder.
I extend to all of you a warm welcome to the Conference, to Australia and to Perth.
I extend a particularly warm welcome to our African Ministerial guests, to:
- Hon Susan Shabangu, Minister of Mineral Resources and Energy of the Republic of South Africa;
- Hon Collins Dauda, Minister of Land, Mines and Natural Resource of Ghana; and
- Hon Ahmed Haj Ali, Minister for Mines of Eritrea.
I also welcome my Parliamentary colleague the Hon Gary Gray, Parliamentary Secretary for Regional Development and Northern Australia.
I welcome to Perth High Commissioners from a number of African countries, whom I have met previously in Canberra.
- HE Dr Christopher James LUKABYO, High Commissioner for Uganda;
- HE Prof. Sunday Oluwadare AGBI, High Commissioner for Nigeria;
- HE Mr Molosiwa SELEPENG, High Commissioner for Botswana; and
- HE Mr Lenin Magigwane SHOPE, High Commissioner for South Africa.
I welcome today Australian High Commissioners and Ambassadors from African countries:
- 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; and
- HE Mr Billy Williams, Australian High Commissioner in Accra, Ghana
I also acknowledge Australia's Senior Trade Commissioner for sub-Saharan Africa, Mr Greg Hull - who has joined us today from Johannesburg.
I acknowledge senior mining officials from a number of African countries and representatives from Australia's minerals resources industry.
Now in its seventh year, Africa DownUnder has become the key Australian event for Australians involved in Africa's minerals resources sector.
This Conference is a valuable opportunity for Australian companies to make contact with African Governments and together identify opportunities to enhance their industry and commercial opportunities.
The presence today of some 900 industry participants, representing the best of Australian minerals resources management, technology and innovation, is testament to the confidence that Australians have in Africa's future.
This is a confidence shared by the Australian Government.
Australia's Strengthened Engagement with Africa
The Australian Government is deeply committed to strengthening Australia's engagement with Africa.
In the past, Australia has not given Africa the priority it requires and deserves.
The Australian Government is determined to change that.
We have worked hard at this since coming to office, and we are making good progress.
In January, I was the first Australian Foreign Minister to address a meeting of African Union Foreign Ministers in Addis Ababa.
There, I identified three priority areas of engagement for Australia:
- to support Africa's efforts to promote economic growth and prosperity through investment and trade;
- to accelerate Africa's progress towards the achievement of its Millennium Development Goals; and
- to address Africa's peace and security challenges.
Australia wants to build on our existing trade, commerce, investment and industry links, our education exchanges and people-to-people contacts, and contribute our expertise and experience to the development, security and prosperity of Africa in this century.
Trade and Investment Links
The growth of Australian investment in Africa's minerals and petroleum resources sector has been impressive.
There are now over 300 Australian companies active across Africa, with current and prospective investment estimated at approximately US$20 billion.
Australian companies are particularly well-represented in mining, oil and gas, and have exploration or mining licences in nearly 30 countries across the continent, from gold in the Democratic Republic of Congo to platinum in South Africa, from copper in Zambia to mineral sands in Senegal.
Australian companies are also active in delivering a broad range of mining services, including engineering, consulting and analysis.
Australian companies bring world-class technology and expertise to their Africa operations.
They have a well-earned reputation for integrity, for good mining practice, for mining safety, for environmental sustainability and protection, and for developing the skills of their workforce.
Australian companies stand for good corporate behaviour and good mining practices in Africa and globally.
The Australian Government is committed to ensuring that Australia's investment meets Africa's economic and development objectives.
We want to work closely with African governments to maximise opportunities for investment and as a consequence employment, skills development, technology transfer, community development and sustainable environmental management.
Australia is in a unique position to help build Africa's mineral resource sector and harness its economic potential.
Much of our own economic strength is built on the success of the Australian minerals resources industry.
Australia has established our own successful minerals resources industry management arrangements.
We are keen to work with African governments, industry and international donors to ensure that effective standards of transparency and accountability are in place.
Australia's significant investment in Africa's mining sector is also providing an important stimulus to Australian merchandise and services exports to the continent.
Australia's merchandise trade with Africa has grown at an annual average rate of over 10 per cent over the past decade.
Australia's total merchandise trade with the countries of Africa in 2008 exceeded $6 billion, with Australia's merchandise exports to the continent accounting for $4 billion.
Strengthened High-Level Engagement
The Australian Government has placed priority on establishing high-level contact with African governments, to convey personally Australia's commitment to enhanced long-term relationships with the countries of Africa.
I have met many of my African counterparts in Addis Ababa at the African Union, in New York at the UN General Assembly and most recently, in Sharm el-Sheikh at the meeting of the Non-Aligned Movement.
Australia is also stepping up high-level visits to Africa.
I visited Addis Ababa this year and am planning another visit in 2010.
The visit of the Governor-General, to nine African countries in March and April, was an historic step that underlined Australia's commitment to increased engagement.
We are also expanding Australia's network of formal diplomatic relationships in Africa.
Last year, Australia established diplomatic relations with Burkina Faso and Liberia.
This year, we have established diplomatic relations with Niger, the Republic of the Congo, Equatorial Guinea, Sao Tome and Principe, and Togo.
Australia now has diplomatic ties with 48 of the 53 countries of Africa.
These ties enable us to work closely and collaboratively with African partners to address global challenges such as climate change, financial reform and transnational crime and to highlight Australian companies.
I have been pleased to welcome to Australia four of my counterparts in recent months: the Tanzanian Minister for Foreign Affairs and International Cooperation, Mr Bernard Membe, the Kenyan Minister for Foreign Affairs, Mr Moses Wetang'ula, the Rwandan Minister for Foreign Affairs and Cooperation, Mrs Rosemary Museminali, and the Botswana Minister of Foreign Affairs and International Cooperation, Mr Phandu Skelemani.
Next week I will have the honour of hosting in Perth, a visit by Foreign Minister Baloi of Mozambique, a country which has now become Australia's second largest trading partner in Africa and where Australian mining investment continues to grow.
These visits present historic opportunities to identify areas in which Australia can expand our relationships with traditional and new African partners.
In my discussions with African Ministers and senior officials, I am often told that African Governments welcome greater Australian investment in Africa's minerals resources sectors.
Consultations with Australian Industry
The Government is committed to supporting trade and investment with Africa through greater consultation and collaboration with Australian industry.
Australia's diplomatic missions in Africa - our Embassies and our High Commissions - play a key role in advancing Australia's commercial interests in Africa.
Our High Commissioners and Ambassadors in sub-Saharan Africa and Austrade's Senior Trade Commissioner, Mr Greg Hull are here today and they will participate in a panel presentation this afternoon.
Africa DownUnder is an excellent opportunity for Australian Government agencies to engage directly with Australian companies.
I encourage you to speak directly with Australian Government representatives here about your interests, and how Government agencies can assist.
Many of you will be familiar with Austrade in South Africa. Austrade heads the Consulate General in Libya, and has recently expanded its presence in sub Sahara Africa with the appointment of representatives in Ghana and Kenya with responsibility for West and East Africa.
The Australian Government welcomes your ideas and your advice about how to move forward.
You have an important impact to make on Australia's strategy to enhance our engagement with Africa.
Yesterday the Department of Foreign Affairs and Trade and Austrade convened a meeting with industry representatives to explore how to improve our consultation on issues relating to the mining industry in Africa.
I am pleased that yesterday's meeting strongly endorsed the establishment of a regular forum for consultation. I look forward to seeing ambitious and practical outcomes from these discussions.
In addition to supporting this Africa DownUnder Conference, each year Australia's Department of Foreign Affairs and Trade, together with the Australian Trade Commission, have a significant presence at Mining Indaba.
Mining Indaba is Africa's largest mining conference, and is held annually in February in Cape Town, South Africa.
Many companies represented here today have previously sponsored Australia's involvement in Indaba and I take this opportunity to thank them for their support.
Like Africa DownUnder, Mining Indaba is an excellent platform for African governments and Australian investors, mining operators and service providers to identify new industry opportunities and to further strengthen collaboration.
Australia will have a strong presence at Indaba again next year.
Australia's Overseas Development Assistance
We want Australia's overseas development assistance program with Africa to make a unique and positive contribution to Africa's future.
This year we increased Australia's development assistance to Africa by 40 per cent to over $160 million.
One focus is the key area of scholarships.
Scholarships
Australia's education links with Africa are strong and growing. Over 9,000 African students are currently in Australia.
The Australian Government sees education as a key to help Africa's economic and social development potential.
Our world-class education services put in a unique position to respond to this demand.
Australia has provided more than 3,600 tertiary scholarships to Africa since 1960.
In Addis Ababa I announced an historic expansion of Australia's scholarships program. This expansion is already underway.
By 2012-13 the program will provide up to 1,000 long and short-term awards each year, and will be available to all African countries.
A key focus of the short-term fellowships is natural resource management and infrastructure, with a view to harnessing the economic growth and development benefits of revenue from the minerals resources industries.
A key part of the fellowships programme help is to build capacity in areas such as Geospatial Information Systems for the resources sector, strengthening skills in the management of geological surveys, resource sector revenues and resource sector regulation.
I am pleased to announce that Australia will be providing twenty-four new resources industries fellowships this year, up from five fellowships in 2008.
The program will also be expanded from five (Kenya, Malawi, Mozambique, Tanzania and Zambia) to fifteen countries across Africa (Botswana, Burkina Faso, Cameroon, Ghana, Kenya, Liberia, Malawi, Mozambique, Namibia, Nigeria, Rwanda, Sierra Leone, Tanzania, Uganda and Zambia).
Viable Resources Industries
Building on Australian knowledge and expertise, Australia has a strong interest in helping African countries develop their mining sector and encourage greater investment, including by identifying and addressing barriers to industry development and by providing targeted support.
In order to raise capital and bring projects to fruition, Australian companies also need African countries to deliver legal and regulatory clarity, transparency and certainty, particularly when it comes to mining titles, leases and licences.
Those African countries that have the most attractive mining codes and the most transparent investment rules will be the ones best-positioned to benefit from a global economic recovery.
I am pleased to announce today that Australia is creating a new technical facility - the Australia-Africa Partnership Facility.
Through the Facility, Australia will provide technical assistance to help African countries tap into their mineral wealth.
The Partnerships Facility will provide an important means for African Governments to access Australian technical expertise in the minerals resources sector, as well as in trade policy, public sector reform, and private sector development.
One of our objectives as a Government is to help ensure that the minerals resources industries contribute to sustainable social and economic development.
In March, the Australian Government co-sponsored a conference in Mozambique on how the effective use of revenues and corporate social responsibility investments could accelerate long-term development. This illustrates how business and development can go hand in hand.
We support international programs such as the Extractive Industries Transparency Initiative. Australia has committed $1.45 million to the World Bank administered Multi-donor Trust Fund to support that initiative.
Global Financial Crisis
The global economic crisis has had a substantial adverse impact on Africa.
Demand for African exports has fallen, as have commodity prices, government revenues and remittances from abroad.
Tighter global credit and greater risk aversion have reduced levels of foreign investment and made trade finance more expensive.
It is expected that 2009 economic growth 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.
Last year Africa enjoyed an economic growth rate estimated at 5.7 per cent. This represented the fifth consecutive year where Africa's economic growth exceeded five per cent.
While high commodity prices played a significant role in this growth, improved economic governance also had an impact.
While the global economic outlook remains uncertain, there is more to achieve on this front.
Concluding Remarks
Africa's relevance and importance for Australia is growing, through business, education and people-to-people links.
The Australian Government, for its part, is committed to strengthening those links further, both as a friend and a partner.
We're making good progress, but there is more work to be done.
I thank all of those who are contributing to the success of Africa DownUnder.
I wish you all every success for the future.