Michael Forshaw (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I present the report of the Joint Standing Committee on Foreign Affairs, Defence and Trade entitled Inquiry intoAustralia's relationship with the countries of Africa. I move:

That the Senate take note of the report.

I think this will be the last time I will make a formal speech in this chamber and I am particularly delighted to do it on the Joint Foreign Affairs, Defence and Trade Committee report I have just tabled. This is the first comprehensive report of our relationship with the countries of Africa by this committee or indeed by any other parliamentary committee.

This report is timely for a number of reasons. Many other advanced countries are turning their attention towards Africa. Indeed, in 2009 the President of the World Bank, Mr Robert Zoellick, called for the 21st century to be 'the century of Africa'. Why is this? In geopolitical terms, African countries have increasing influence on international organisations; in resource terms, Africa has vast reserves—about 30 per cent of the world's mineral resources; in trade terms, the African population represents a huge potential market; and, in agricultural terms, Africa's underutilised arable land represents great opportunities to feed not only the African continent but other parts of the world.

Australians have for a long time been interested in Africa. The Australian public donates far more to aid organisations than Australia's official development assistance. Academics too have been interested in Africa, although recently expertise has been fragmented across the universities in Australia. Now the Australian mining sector is becoming a major investor in Africa. The committee received evidence that 227 Australian resource companies have projects on the ground in Africa. At least 53 com­panies and 172 new projects commenced operation for the first time in Africa since the beginning of 2010. The total projected capital investment of projects is more than A$27 billion.

I can already report on one outcome of this inquiry. It has brought together people throughout Australia with an interest in Africa and African issues, including academics, businesses and Australian non-government organisations. This rich vein of knowledge and expertise is ready to be harnessed in promoting Australian interests in Africa.

Let me highlight some of the key findings of the report. Australia's diplomatic representation on the African continent is significantly less than that of our major trading partners: the US, China, Japan, the UK and the EU. Further, Canada and, in our region, the Republic of Korea and Malaysia all have substantially more diplomatic posts than Australia, and Thailand and Vietnam have comparable representation. Whilst the importance of Africa and African issues has increased over the past 25 years, Australia's diplomatic presence has decreased from 12 to eight posts in the same period. Our diplomatic presence is now concentrated in southern and eastern Africa and the former British colonies. There is a considerable gap elsewhere, particularly in Francophone Africa.

Therefore, this report recommends a comprehensive review of Australia's diplomatic representation on the African continent with a view to opening an addi­tional post in Francophone Africa as a priority. Also it recommends increasing the number of Australia based French-speaking diplomatic staff in the existing west African high commissions and, as a short-term measure, increasing the number of Aust­ralian honorary consuls in Africa.

The committee welcomes the increasing level of Australian development aid to Africa in recent years. The areas where Australia is focusing its assistance—agriculture, food security, water, sanitation, and maternal and child health—are where Australia has expertise and can, therefore, generate the greatest impact. The committee has not commented on Australia's aid effectiveness, because that is currently being reviewed by an independent panel. Nevertheless, a committee delegation, which visited four countries in Africa, was impressed by the potential benefit of supporting private sector initiatives. Provided such projects are carefully selected, there is the advantage of leveraging additional funds from the private sector, affecting large numbers of people through an expanded local economy and supporting a sustainable enterprise with the potential for growth. The committee received evidence from the private sector and individuals about initiatives which develop capacity in African countries. The committee believes these programs should be encour­aged and has recommended that AusAID provide assistance to such programs.

Whilst in Africa the members of the committee delegation were regularly approa­ched by African government ministers, officials and businessmen advocating Australian involvement in creating regu­lation frameworks for the mining sector in African countries. As a major minerals exporter, Australia has the experience and expertise in this area and could readily assist African countries. Robust regulatory frame­works offer certainty for business and would benefit resource-rich African countries. There is thus a major opportunity for the Australian government, the state government and the wider mining industry to use their expertise to assist the development, imple­mentation and administration of sound mining codes in a range of African countries. The committee has recommended that there be established a special unit in the Australian government tasked with establishing a regulatory framework model for the mining and resources sector which African countries could consider adopting according to their requirements.

The higher education sector is now a significant contributor to Australia's export earnings. The sector has a growing reputation for building links with academic institutions in developing countries. It is in Australia's interests to further develop these valuable ties and similar relationships in research and higher education in Africa. The committee recognises that there needs to be a balance with respect to the provision of scholarships to Africans. On the one hand, Africa will benefit through the transfer of skills if African students return to their country of origin after completion of their studies. Australia also benefits because the African alumni will act as ambassadors from Australia. On the other hand, the immediate benefit to Australia occurs when African students remain in Australia, because their skills alleviate Australia's skills shortage. Such a brain drain is of concern not only to African countries but also to other countries providing talented students to study in Australia.

The committee has recommended that AusAID's scholarships program should include providing scholarships to African students to undertake tertiary education in Africa. This could involve study at African universities and at Australian universities with links with Africa.

There is within Australia a substantial body of expertise on African issues. The committee believes that it is important to promote its coordination and further development. Therefore, the committee has recommended that a centre for African studies should be established, preferably within a university in Australia. A centre will facilitate a coordinated approach to education and training both at undergraduate and graduate level. Further, it will establish a focal point for coordinating expertise on African issues.

There are a range of other matters that the committee dealt with, including trade and investment, recognising the potentially huge market of Africa, and issues to do with corporate social responsibility. One that I wish particularly to refer to because my time is running short is the Extractive Industries Transparency Initiative. This is a process whereby host governments publish what they receive from mining companies which in turn publish what they pay. This promotes transparency and is aimed to reduce the risk of corruption.

The only First World country that has signed up to the EITI is Norway. No other First World country, including Australia, either is an EITI candidate or has signalled intentions to adopt its principles. It would certainly enhance Australia's advocacy of EITI adoption on the African continent if it were itself engaged in the process of becoming EITI compliant.

I will seek leave to incorporate the remainder of my speech, but I do want to mention one other recommendation. The committee believes that the increasing opportunities for links with Africa, including the potential for increased trade with Africa and the increasing levels of investment that are already occurring, warrant the establish­ment of an Australia-Africa council similar to those that currently exist for other countries and regions. I point particularly to the great success of the Council on Australia Latin American Relations. That organisation had its genesis in a report by this committee back in 2000 when it looked at Australia's relations with Latin America.

As I said the committee report also discusses other issues, including defence and security, the work of our peacekeeping forces over many years on the continent and also issues that face African migrants and refugees living in Australia. In conclusion I thank firstly the Prime Minister and the Foreign Minister, who supported a delegation from the committee visiting the country and particularly their visit to Zimbabwe. Finally I thank my colleagues on the Africa subcommittee. I particularly thank the hard-working secretariat, I know some of them are here in the chamber today, Dr John Carter, James Bunce, Dr Brian Lloyd, Rhys Merrett, Jessica Butler and Gillian Drew. I also thank Dr Margot Kerley, the secretary of the full committee, who is leaving the parliament after some 20 years service. I believe this report will enhance our relations with Africa and I commend it to the Senate. I seek leave to incorporate the remainder of my speech.

Leave granted.

The remainder of the speech read as follows—

Turning to trade and investment, Mr President—

The 53 countries of Africa have a total population in excess of one billion; in Sub Saharan Africa the population is in excess of 870 million. This represents a potential huge market. Australia's trade links with Africa are currently modest, but there are opportunities for joint ventures with businesses in South Africa and in the horticultural and tourism sectors generally.

Australia is increasing its trade and investment links with the continent, yet has only a handful of Austrade personnel in Africa. Due to the increased importance of trade and investment in Africa combined with the large geographical area and increasing workload, the Committee has recommended that the number of Austrade offices and personnel that are based in Sub-Saharan Africa be increased.

The corporate social responsibility obligations of Australian resource sector companies operating in Africa was raised by a number of witnesses. The report discusses in some detail the activities of several Australian mining companies in Africa including the links with NGOs with an interest in this area.

Of particular note, Mr President, is that BHP Billiton has a target of spending one per cent of its pre-tax profit on community programs. In 2009-10 this amounted to $200 million which makes BHP Billiton the third largest development agency in Australia—after the Australian Government and World Vision!

The Extractive Industry Transparency Initiative (EITI) is a process whereby host govern­ments publish what they receive from mining companies which in turn publish what they pay. This promotes transparency and is aimed to reduce the risk of corruption.

Norway is the only First World country that is EITI compliant; no other First World country, including Australia, is either an EITI candidate or has signalled intent to adopt EITI principles. It would considerably enhance Australia's advocacy of EITI adoption if it was itself engaged in the process of becoming BM compliant.

The Committee has also recommended that the Government promote corporate social respon­sibility and continue to promote the Extractive Industries Transparency Initiative principles and other corporate social responsibility instruments to the Australian mining sector, in particular at the Australia Down Under Conference, and especially to new entrants and small operators.

The Committee believes the increasing opportunities for links with Africa, including the potential for increased trade with Africa and the increasing levels of investment that are already occurring, warrant the establishment of an Australia-Africa Council similar to those currently existing for other countries and regions. An example of such a council is the Council on Australian Latin America Relations—an organ­isa­tion which had its genesis in a recom­mendation from this Committee in 2000.

The Report also discusses the defence and security aspects of Australia's engagement with Africa, and issues facing African migrants and refugees living in Australia and how the African community in Australia can contribute to Australia-Africa relations.

The Committee has recommended that the proposed Australia-Africa Council should include within its goals, support for activities that encourage and facilitate cultural interchange and exchange, particularly including the Australian African community.

In closing, Mr President, I would like to thank all those who provided submissions and gave evidence at the public hearings I also wish to thank the Prime Minister and the Foreign Affairs Minister for enabling a delegation of the Committee to visit four countries in Africa as part of the inquiry. In particular, the Foreign Minister encouraged the Committee Delegation to visit Zimbabwe. This provided valuable insights into the situation in that country.

Finally, I thank my colleagues on the Africa Sub-Committee, and the secretariat.

[Those who worked on the report were Dr John Carter, James Bunce, Dr Brian Lloyd, Rhys Merrett; office staff were Jessica Butler and Gillian Drew]

Mr President, I commend the report to the Senate.

Senator Michael Forshaw

Senator for New South Wales

Russell Trood (Queensland, Liberal Party) Share this | Link to this | Hansard source

I would like to take the opportunity of this report being tabled in the parliament to make some remarks in relation to the report. Before I do that I want to acknowledge Senator Forshaw's distinguished contribution to the parliament through his leadership of the Joint Standing Committee on Foreign Affairs, Defence and Trade and indeed his enthusiastic support for the inquiry in relation to Africa. It was unfortunate that he was unable to visit Africa with the delegation, but he was determined that this report proceed and that it be completed prior to him leaving the parliament, which I am delighted about because it means that the report has been completed before I leave the parliament as well. So that worked out rather nicely.

It is an important report as Senator Forshaw has said. I think it is a report that has been a long time coming. We have not as a parliament examined our relations with Africa or indeed any significant part of Africa for a great many years. I think that we have undertaken this inquiry is an indicator of the way in which perceptions about Africa are changing. There is a perception of Africa in the Western consciousness I can perhaps say. In many ways it is not a particularly flattering perception of Africa. It is a perception that rests on a place of enormous conflict, a place of tumult and a place of turbulence in political terms. It is also perception of a place of considerable underdevelopment where poverty is rife throughout the continent and not much changes over a long period of time.

One of the significant findings of this report—although it is not indicated as the basis of a recommendation—has to do with the very significant ways in which Africa is changing. It is changing in ways that ought to attract our significant attention. One indicator of this is merely by looking at some of the economic growth rates across the continent. In some respects I think people would be surprised about these growth rates. The growth rate for Angola in 2010 was 7.37 per cent; Ethiopia, 9.6 per cent; Ghana, 6.4 per cent; Rwanda, 5.2 per cent; the Republic of Tanzania, 5.7 per cent and Uganda, 7.4 per cent. These are not insignificant growth rates for a continent which for such a long period of time has been perceived as, to put it colloquially and unflatteringly, 'a basket case'. Of course these are growth rates off a very low base, which we all recognise, but they are a reflection of the fact that, fortunately for Africans, they were not as severely affected by the global financial crisis as many other countries were. But they tell a story about the promise of Africa. I think that is a story to which we should all be paying close attention.

I was fortunate that I was able to visit Africa with the parliamentary delegation which went there. We visited South Africa, Zimbabwe, Ghana and Ethiopia, and in each of these places I think we found a measure of opportunity and optimism. In fact, there were three general themes from the many insights and useful things that I learnt during my visit to Africa with the delegation. The three that strike me and which I think are important indicators of Africa's future are, firstly, the fact that there is now a tremendous optimism across Africa. Notwithstanding the fact that places like Zimbabwe and the whole of North Africa remain in a measure of political turmoil and turbulence, in the places we visited there was a great deal of optimism. When I say that, I say it even in the context of Zimbabwe, which of course has had a catastrophic period of time politically and, indeed, economically. But even amongst the Zimbabweans we met there was a degree of optimism about its future.

In my view that optimism has to be finely calibrated against the possible downside of what could happen there in the near future, but there is optimism. The context of that optimism leads to the second broad observation I would make, which is that in the context of optimism there is great opportunity in Africa. There is great opportunity, not for exploitation but to become more actively and effectively engaged with Africa. That is one of the themes that I think underlines the report as much as any.

The third observation I would make about it is that Australians seem to be welcomed across Africa. Unlike some countries that are actively involved there and which are larger—and I refer to the Chinese, who many see as a rather threatening presence in parts of Africa—Australians are welcomed for their aid expertise, their expertise in mining and the contribution that it is widely seen they are able to make to Africa's future and to its promise.

In Senator Forshaw's remarks he referred specifically to the state of our diplomatic representation. This is, indeed, rather lamentable. We have only eight missions across Africa, and I acknowledge that the Labor government has opened a new mission in Addis Ababa. That is an important mission, and I am delighted that it has actually taken place. We are underweight in Africa, diplomatically, compared to some other comparable countries. As Senator Forshaw said, Canada, Malaysia and Korea all have a significantly large number of embassies. Canada, for example, has 18 embassies and high commissions, Malaysia has 13 and the Republic of Korea has 16. We need to do better than that, and the point that Senator Forshaw made—a point that is made in the report by the committee—is that we particularly need greater representation in Francophone Africa—perhaps in Senegal. We have limited representation.

The other thing that strikes one when one looks at the representation in Africa is that many of our embassies and high com­missions are very small, particularly where there is multiple representation and accreditation to other countries beyond the residence of the embassy or the high commission. It is a real stretch for the staff to undertake the work that is demanded of them. I particularly underscore the point that is made in the report that the Austrade representation in Africa is, essentially, inadequate. We need greater Austrade representation. There are tremendous opportunities for Australian business in Africa. Again, as Senator Forshaw observed, there is something in the vicinity of $27 billion of Australian investment in Africa now, but the potential for greater investment for expanding Australia's trade is significant. I think we certainly need to improve Austrade's representation in the context of those opportunities.

In the final moments that are left to me I would like to make the point that there is educational opportunity in Africa. There are resources in relation to Africa spread across the country, but they are rather disaggregated. The expertise we have in Africa is growing but it is not well con­centrated, and I think the recommendation in the report for the creation of an African studies centre is one that deserves particularly close attention because we do need to find some aggregation of resources which will allow us to work effectively in understanding Africa a great deal more thoroughly than we are able to do at the moment.

In concluding I acknowledge the tremendous contribution that the committee secretariat made to the preparation of the report—in particular Dr John Carter, who accompanied the delegation to Africa. From my perspective, his notes were sometimes difficult to read but were immensely valuable in reminding me of some of the meetings we undertook. He did a tremendous job in making sure the delegation did not lose itself and I acknowledge the work that he did on the inquiry and that, indeed, of the rest of his staff.

Question agreed to.