Australia and Africa: converging continents |02 February 2011
The perspective we have on Africa is also different from that of many Western countries. When it looks west towards Africa, Australia sees a continent of growing stability and opportunity.
Africa is already a continent of a billion people, and by 2040 it will have the world's largest working-age population. Its combined consumer spending in 2008 was $860 billion, and the McKinsey management consultancy predicts this will grow to $1.4 trillion in 2020.
There is good reason to be optimistic about Africa's future.
Foreign direct investment in Africa has increased from $9 billion in 2000 to $62 billion in 2008 – almost as large as the flow into China when measured relative to gross domestic product.
According to McKinsey, the rate of return on foreign investment in Africa is higher than in any other region. This spells shared interest and opportunity for both Australia and Africa.
The key area of common interest lies in the mineral and resources sector. Minerals development has been a key part of Australia's economic success, and Africa's resource endowment can also be the basis for its development and prosperity.
Australia's mining sector is ready to use and share its expertise. There are already more than 215 Australian resources companies with assets in Africa, with nearly 600 projects.
Investment by Australian companies in this sector is $20 billion, with billions more in prospect.
The Australian government, too, is ready to help African governments to manage their resources to spur economic development, including through training and technical aid.
Australia also understands that Africa's voice is now being heard in global forums. Africa is central to progress on key issues such as climate change, trade reform, peace and security, and addressing global poverty.
I am committed to working closely with Africa, bilaterally and multilaterally, to tackle global challenges.
For example, on climate change, I serve under the co-chairmanship of President Jacob Zuma and President Tarja Halonen on the UN secretary-general’s High-Level Panel on Global Sustainability, designed to formulate a new vision and set of mechanisms for achieving sustainable growth and prosperity.
Australia is prepared to put its money where its mouth is on climate change. We will provide $599 million over three years for fast-start financing for developing countries, a quarter of which will benefit least-developed countries, many in Africa.
Recognising that Africa still confronts major development challenges, we are also committed to helping African countries achieve the Millennium Development Goals.
We have doubled our development assistance to Africa in the past three years. We have also doubled our aid globally in the past five years to $4.3 billion and we are on track to double it again to $8 billion by 2015.
In Africa, I want to target our help in sectors where we have expertise and can make an impact.
Australia, like Africa, is a major agricultural producer and a country that is closely linked to the land.
Building on our expertise, we are helping to build agricultural research capacity in Africa through a three-year $100 million food security initiative.
As part of this initiative, Australia’s national science agency, the Commonwealth Scientific and Industrial Research Organisation, will support crop and livestock productivity research programmes in West Africa.
We will also continue to provide humanitarian aid to address crises across the continent, including in Sudan and Somalia.
In these endeavours, I believe that Australia must set a high priority on working with and through African institutions, and aligning our efforts with the priorities of national governments and the African Union (AU).
Australia is proud of its educational institutions and recognises their value in training the leaders of tomorrow, and building linkages between our own country and the rest of the world.
The new Australia-Africa Awards are boosting education links between our two continents. This year 400 African students from nearly 40 countries will study in Australia under the scheme. By 2012-13, there will be 1,000 such awards for Africans every year.
Even as we work together to build a brighter future with Africa, we also have an interest in bringing peace and stability to Africa’s flashpoints.
Australia has always been a major contributor to UN peacekeeping, contributing 65,000 personnel to more than 50 UN and multilateral peace and security missions over the years.
Today, we have 27 personnel deployed to the UN mission in Sudan, and we are working through the UN Peace Building Commission to support Sierra Leone. Australia has also worked with the AU to develop guidelines to protect civilians in conflict, which we hope to see adopted by the AU later this year.
Australia and Africa have common interests to pursue, and common global challenges to confront. We will pursue our engagement with creative ideas and active diplomacy.
Our commitment to Africa will be an enduring one.