Speech
Australia Africa Business Council 2009 Conference
7 September 2009
Introduction
It is a great pleasure to join you on the Gold Coast tonight to discuss the Australian Government's plans for building our relationship with Africa.
It is, in fact, a greater pleasure even than I had expected it to be.
As is often the case, our South African friends ensure that events like these are held near to sporting contests.
We know why they do that - more often than not, in the rugby at least, those contests favour the Springboks.
Tonight, we Australians have the rare pleasure of enjoying South African company in the warm afterglow of an Australian rugby victory.
South African company - which I always enjoy - is specially welcome tonight.
I want particularly to welcome you, Minister Shabangu for taking the trouble to visit Australia and for your presence here.
Your visit signifies the continuing commitment of your country to do business with Australia, particularly in the field of mining - a vital industry for both our countries, and one where we are increasingly cooperating.
We warmly welcome you, and we trust that your visit will be a great success.
We ask you to take back to your people, your Government, and your President our warm friendship for South Africa, our confidence in its bright future, and our determination to play our part in your success.
Africa's renaissance
Ladies and gentlemen
Africa is changing.
For each region of the world, there are moments in history which define their destiny.
For Asia, the economic transformation of the post war period has brought unprecedented increases in wealth, first for Japan, then South East Asia and Korea, and now for China.
For Latin America, the spread of democracy in the 1980s has heralded new rights and freedoms for the peoples of that continent.
For eastern Europe, the fall of the Berlin Wall opened the way for an era of freedom, which is now driving better lives for many in the region.
Another continent, Africa, is undergoing its own transformation right now.
The results may not be as dramatic yet as we have seen elsewhere but, unmistakably, change is taking place.
Change that is delivering growth, giving people new opportunities, and enhancing freedoms.
This change is reflected in three key dynamics: the spread of democracy; advances in stability and security; and stronger economic growth.
In each of these fields, there has been measurable, in some cases remarkable, progress.
Consider the following statistics:
- Twenty five years ago, there were just three African democracies - Botswana, Senegal and Mauritius.
- Today, at least thirty-five African countries have governments elected in multi-party polls.
- Last year alone, some 36 million Africans had the right to vote in elections held across ten different countries. It was estimated that 70 per cent of eligible voters participated, compared to roughtly 36 per cent in 2007.
In economics, we have seen substantial progress:
- In the first half of the 1990s, sub-Saharan Africa's annual GDP failed to grow by a single percentage point.
- In the second half of the 90s, it grew on average by 3.5 per cent each year.
- In the first five years of this century, 4.3 per cent.
- Over the past five years, economic growth in sub-Saharan Africa has averaged more than six per cent.
Other economic indicators tell a similar story.
External debt as a percentage of GDP in sub-Saharan Africa was at 57 per cent in 1985. Now it stands around 30. (IMF)
But perhaps the most striking of the figures relates to investment.
- According to the IMF, net direct investment in Africa in the 1980s hovered in the 200 million dollar zone.
- By 2000 it had reached seven billion dollars; and in 2006 it was nearly 20 billion.
But achievement go beyond rising democracy and increasing economic success.
Africa is now more stable and peaceful than at any time in the last 20 years.
The increase in stability in Africa is more difficult to track in statistics.
But the trend is nonetheless clear - reductions in conflict, fewer coups and, vitally, a new culture on the continent that is intolerant of violence as a method of gaining and holding power.
Africa is clearly changing; and changing in ways that are thoroughly welcome to all of us who wish the continent and its people well.
Having said that, Africa's increasing success is not a one-way street
For many Africans, the pace of democratisation is not fast enough.
Instability and insecurity - though receding - still affect too many.
And economic growth, while striking, is not lifting enough Africans out of poverty.
Progress on these fronts is solid, but for many Africans and their friends elsewhere in the world - impatient for a better life for all Africans - further progress would be welcome.
What is encouraging against this background is the extent to which these improvements are becoming solidified.
The consensus for democracy and economic reform is strengthening.
The progress made - achieved by Africans - is now being defended by Africans.
Africa in global affairs
The world is watching Africa with renewed interest and hope.
And, as Africa changes, so its place in global affairs is being transformed.
The role of Africans is now key in the resolution of some of the most complex challenges facing us - whether we are considering a solution to climate change, a better approach to food security, or the resolution of the Doha Development Round of trade negotiations, the engagement of Africa is vital.
We cannot conceive of a solution to these challenges without buy-in and support from African states.
At the same time, Africa is beginning to take its rightful place in global forums.
As Australia has long recognised, reform of the UN Security Council cannot take place without a greater role for Africa.
In the G20, South Africa already sits at one of the world's top tables.
There, Australia and South Africa have had very close cooperation.
In fact, it is South Africa and Australia together that have led the historic process of reforming the IMF.
At the Pittsburgh summit later this month, Prime Minister Rudd and President Zuma will again be key players in bringing about a transformation of this vital institution.
Strengthened engagement with Africa
It is consistent with this rise of Africa that Australia's approach to Africa has changed under the Rudd Government.
We have committed to increasing our engagement with Africa across the board
-through strengthened political contacts, enhanced trade and commercial linkages, cooperation on peace and security, and increased development assistance.
We have increased our diplomatic reach, formally establishing diplomatic relations with seven new countries - our diplomatic reach now spans from Madagascar in the east to Sao Tome and Principe in the west.
That means we now have diplomatic ties with 48 African countries.
We are strengthening the high-level links between leaders and ministers that are vital to effective links between governments and peoples.
In January this year, the Minister for Foreign Affairs visited Africa to address a meeting of African Union Foreign Ministers in Addis Ababa - becoming the first Australian Foreign Minister to do so.
The Defence Minister visited Africa in February to discuss defence, security and peacekeeping issues.
And, most significantly, the Governor General made a historic visit to nine African countries earlier this year.
Her visit has been universally welcomed by African countries.
Australia has reached out to Africa.
And that gesture has been warmly reciprocated.
This year alone, the foreign ministers of four African countries have made official guest of government visits to Australia, with a fifth to take place later this week - representing more in one year than in the previous ten years combined.
From Tanzania, Kenya, Rwanda, Botswana and Mozambique, African foreign ministers have responded to Australia's new interest.
These Ministers have brought a consistent message - that Australia's increased engagement is welcome.
Support for sustainable economic and social development
This higher level of diplomatic engagement provides a strengthened platform for relations with Africa across a range of fields.
For many years, Australia has undertaken useful development work in Africa.
Because of our new focus on the continent, and because of our commitment to making an impact on the Millenium Development Goals, we are determined to increase our level of development support to Africa.
The Government will direct $164 million in development assistance to Africa in 2009-10, an increase of more than 40 per cent from the previous year.
This assistance will focus on those areas where Australia is best able to make a difference
-in particular, where we have comparative advantage and experience, such as food security and agriculture, maternal and child health, and water and sanitation.
We will also increase support for education and training.
Human capital is the fundamental building block of sustainable development.
Conscious of that, the Government has announced an expanded scholarships program in Africa, offering up to 1000 awards per year by 2012-13 - a tenfold increase from the current 100 awards a year.
This significant investment in Africa's future - which potentially will be open to all African countries - aims to develop an alumni who are better equipped to lead or support accelerated progress towards achievement of the MDGs in Africa.
What better way to form life-long links between our peoples than to provide young African students with the platform they need to contribute to their communities and countries?
Expanded trade and investment
In political relations and in development assistance, the government is lifting its game.
That is consistent with increasingly positive signs for Africa.
It is also consistent with the increased interest that Australia's investors and traders have already taken in the continent.
For more than a decade now, Australian traders and investors have been conscious that, though there are potential pitfalls, trade and investment in Africa can offer real rewards.
It is you - Australia's traders and investors - who have led Australia's re-engagement with the region.
It was the skill of our miners, supported by the vision of their backers, that have been at the forefront of our new engagement.
The story of the Australian mining industry in Africa is a story of great entrepreneurship and skill on the Australian side, and better environments for investment and trade on the African side.
Only twenty years ago, Australian investment in Africa was negligible.
Skilled Australians identified new opportunities in African countries with strengthening mining and investment regimes.
Australians backed their capabilities and their instincts about Africa's improving governance.
The result is Australian investment in Africa's mining and resource sector worth around $20 billion.
In practice, that means Australian owned, managed or staffed projects from Namibia to Senegal - in gold, uranium, coal and mineral sands.
What is more, in some cases, it means downstream processing, such as in BHP Billiton's massive Mozal aluminium smelter in Mozambique.
Just as we expect of them in Australia, our corporations operating in Africa are expected to bring new benefits to the communities in which they work.
This means benefits such as local employment opportunities, skills development through education and training, local procurement of equipment and technology where possible, community development, infrastructure and service provision, and environmental management.
Australia's miners and investors have led the way - but Australia's traders are not that far behind.
Australia's trade with Africa is more substantial than many would think.
Two way trade with the continent topped $6 billion in 2008.
And the rate of increase in trade is impressive.
In fact, over the last five years Australia's trade with Africa has increased by 8.5 per cent per annum.
That puts it amongst the fastest growing regions for Australia's trade.
That also is a tribute to the Australians involved in trade with Africa, many of them in this room, who have seen dynamic opportunities and taken full advantage.
Now, more than 300 Australian companies are active in at least 30 African countries.
This is a great story - but it is one that we want to get better.
The Government is also committed to working with Australian companies to support their efforts to do business with Africa.
Through our embassies, and the work of Austrade, we are focussed on key industries of importance to both Australia and Africa.
Austrade has major offices in Johannesburg and Tripoli, and has recently opened two new posts in Accra and Nairobi.
This will increase our ability to identify opportunities, and bring people together.
The mining industry in Africa is already mature, but there are many other fields where Australian business can add value.
Infrastructure projects - including those funded by donor or loan agencies - is a field where Australia has strong expertise.
We can contribute when it comes to port and rail construction and large scale resource transportation; port and route security; road transport systems; toll road construction; and transportation in tropical climates.
Building and improving food security across Africa is a major focus of African and international efforts.
Australia can help the efforts of African countries to advance this important goal through our agribusiness sector, especially in the utilization of Australian technology driven solutions in the areas of tropical agriculture, dry land farming, drought (and perhaps flood) mitigation, pest control and water management.
The automotive sector supports substantial employment in both South Africa and Australia.
We can leverage our mutual interests by targeting the growing presence of Original Equipment Manufacturers (OEMs) in South Africa, and linking these with the wealth of innovative component suppliers in Australia.
In education, there is great scope to build links with faculties across the tertiary sector, driving investment, training and new market development in the industry across Africa - the added benefit being a strengthened rapport between students and educators across our two continents.
Finally, as Australia looks forward to being part of the FIFA World Cup in South Africa, we can bring additional value to what we are confident will be an excellent event through our own expertise in major sporting events.
There are many opportunities, and plenty more ways that we can work better by bringing people from business and government together.
Events like these - and The Africa Down Under conference held in Perth last week, which attracted over one thousand delegates - prove the Australian business community, lead by the mining industry, is increasingly aware of the opportunities and benefits of working west across the Indian Ocean.
Concluding remarks
Australia and Africa have begun a new journey.
The Australian Government is committed to greater levels of engagement.
That is being reciprocated by our friends from Africa.
We have much more to do, but I am confident we can do it.
If we need inspiration, we can turn to the people of Africa.
Let us commit ourselves to the sort of effort that will bring Australia and Africa closer together, in trade, investment, development and in sport.
I congratulate you on your striking success so far, and wish you all success for the future.
Thank you.