Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

I present the report of the Foreign Affairs, Defence and Trade References Committee on Australia's trade and investment relationships with the countries of Africa, together with the Hansard record of proceedings, and documents presented to the committee.

I move:

That the Senate take note of the report.

As the Chair of the Foreign Affairs, Defence and Trade References Committee, I'm pleased to speak on this report on Australia's trade and investment relationships with the countries of Africa. Right at the outset I'd like to put on the record that, like a lot of the Senate work that goes unremarked and unrewarded, it is an extremely good representation of the bipartisan, collegiate efforts of all senators who partook in the inquiries and the writing of the report. In particular, Senator Reynolds's contribution was over and above, if you like, in terms of getting people to come to the inquiries and contributing to the final outcome.

We received about 32 written submissions, and two public hearings were held, the first on 2 May 2018 and the second on 11 May 2018, in Canberra. The committee heard from a range of stakeholders from the public, private and non-government sectors, each with their unique perspective on the relationships between Australia and Africa. At the Canberra hearing the committee had the pleasure of speaking with 16 African heads of mission. Sixteen African heads of mission came to the hearing here in Canberra, and the committee would like to extend its warm thanks to all of those ambassadors and high commissioners for appearing. This showing clearly demonstrated the high regard in which Australia-Africa relationships are held.

At this point I want to quote from an article in The Washington Post in March of this year that talked about the AfCFTA, which is the African Continental Free Trade Area, which was initiated in Rwanda on 21 March:

This will be one of the world's largest free-trade areas in terms of the number of countries, covering more than 1.2 billion people and over $4 trillion in combined consumer and business spending if all 55 countries join.

So I think it is reasonably prescient of the committee to have covered the topic at the same time that this fundamental shift in trade agreements is happening in Africa. As senators may recall, the topic of Australia's relationship with the countries of Africa was covered by the Joint Standing Committee on Foreign Affairs, Defence and Trade, with their report being tabled in June 2011. Whilst the terms of reference of that inquiry were broader, the joint committee made a number of recommendations regarding Australia's trade and investment relationship with Africa, many of which were agreed to at the time by the government.

The committee was pleased to hear from witnesses regarding the recent signing of the framework to establish the African Continental Free Trade Area. Whilst this agreement is some way from being fully implemented, once in force it will not only boost trade between African countries but also provide Australian companies based in a single African country with unprecedented market access across the continent. The committee has recommended that developments in the implementation of this agreement be monitored closely so as to provide Australian businesses with the best possible opportunity to grow in new areas of Africa.

In respect of mining, the committee is pleased to note that Australia's existing trade and investment relationship with many African countries is robust, founded largely on the wide footprint of Australia's mining company operations in Africa. The committee heard that there are currently over 170 Australian mining companies operating in Africa and the current and potential investment in this sector is estimated to be worth in the order of $40 billion. The committee has recommended a review of data collection on Australian mining projects in Africa to ensure that the information on this important sector is comprehensive and up to date.

While mining itself produces a range of benefits including job creation in African communities, the committee heard from witnesses that described the ways in which Australian mining companies in Africa are working to ensure sustainable economic development for their host communities beyond the life of the mine. We heard that mining companies are focused on leaving a functioning economy after the extractive activities and the rehabilitation, with the provision of important community services of electricity, water and a sustainable agricultural base. This is really important and excellent work that is going on and is probably not spoken about and is basically unrewarded. In order to build on this positive work, the committee has recommended a review of Australian mining and METS companies operating on the African continent who undertake engagement and provide services or assistance to the communities in which they operate. As our foreign minister is very keen to look at private sector involvement in our foreign aid program, it's a really good template to have an evaluation of.

The committee was also pleased to hear that Australian companies are well positioned to assist African countries in achieving the Sustainable Development Goals. For example, the company spoke with Base Resources, Business for Development and the Cotton On group, who described their innovative Kwale Cotton Project in Kenya. This project provides smallholder farmers in areas surrounding the mine with the knowledge and skills to produce ethical cotton for sale back into the Australian market. This not only provides farmers with a reliable source of income but ensures that Australian businesses like Cotton On have access to a secure and transparent supply chain.

Witnesses spoke of the lack of energy infrastructure across many regions of Africa as posing a barrier to sustainable development. The committee heard from Australian companies such as Carnegie Clean Energy and Windlab, who have capabilities to provide solutions to many of these issues. The committee also heard that Australia's existing presence in the African mining space provides an ideal platform for these businesses to access African markets. The committee has therefore recommended a round of funding for these projects that contribute to the achievement of Africa's Sustainable Development Goals through the Department of Foreign Affairs and Trade's Business Partnership Platform.

While mining forms the cornerstone of Australia's current investment in Africa, it is by no means the only sector in which Australia is working on our relationships. Given the huge potential for growth in Australia's presence in African non-extractive industries across technology, communications, renewable energy, retail and agriculture, the committee recommended in this report that Austrade actively monitor new trade and investment opportunities in Africa for Australian businesses.

The committee received evidence about some of the barriers affecting Australia's trade and investment with the countries of Africa, including the security challenges Australian businesses may face when operating in remote regions. The committee heard examples of businesses supplementing Australian government advice with privately sourced security advice. In order to provide additional assistance, the committee has recommended a review of DFAT's Smartraveller advice platforms to ensure that tailored and specific advice is provided to Australian businesses operating in Africa.

The committee heard from the Australian Centre for International Agricultural Research, who explained that Australia's expertise in agribusiness, particularly in harsh climates, has proven to be very transferable to an African context. Through projects such as the Australia-Africa Plant Biosecurity Partnership, Australia is helping to develop a robust agricultural sector, particularly in eastern and southern Africa, and in turn strengthening the foundations for improved trade links between Africa and Australia. The committee has recommended that an increase in funding to ACIAR be considered to ensure they can continue to grow their important work in Africa.

The diplomatic footprint has been a subject of contention. While interactions with Australia's diplomatic missions in Africa for trade and investment purposes have largely and broadly been positive, these missions have a limited footprint which can present challenges for businesses operating in Africa. However, the committee noted that DFAT are currently exploring innovative and versatile new methods of diplomacy that could allow Australia to expand its diplomatic footprint in new ways. In light of this, the committee has recommended a review of Australia's diplomatic presence in Africa, with a particular focus on applying these new diplomatic methods in the African context. I seek leave to continue my remarks later.

Leave granted; debate adjourned.

Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

I also rise to speak on the report on Australia's trade investment relationships with the countries of Africa. First of all, as Deputy Chair of the Foreign Affairs, Defence and Trade References Committee, I congratulate Senator Gallacher for his chairmanship of this inquiry and I endorse all of his comments on the contents of the report. It is a very significant report and I hope it's not, as Senator Gallacher said, one of those wonderfully bipartisan reports that just sits on a shelf, because it has a lot to offer our country and also many nations across Africa.

I've said previously in this place that Africa matters to Australia, and I believe it matters a great deal. As Senator Gallacher said, it is very likely soon to become the largest free trade area in the world. Australia's two-way goods and merchandise trade with Africa was valued at $7.6 billion last year alone and is now set to grow considerably across many different industrial sectors. In my home state of Western Australia—and those here know it wouldn't be a speech from me without mentioning Western Australia!—exports to many countries in Africa are now worth over $1.4 billion a year. But I think the most significant thing for me is that Western Australia is home to over 150 ASX listed companies with up to 600 advanced resource projects at last count across 35 African countries. It was very, very interesting to me when I went to represent the Australian government last year at Mining Indaba that I had to go all the way to Cape Town to meet half of West Perth! It was a very revealing trip and it led me on the journey to standing up here today talking about our relationship with many African countries.

I know today through the various committee work that I do that the Australian government faces a range of challenging and often competing strategic priorities, firstly, in our region and then, more widely, globally. With everything else going on in the world today competing for our limited resources in terms of people, government focus and finances, it is very easy to overlook the significance of the scale and scope of our trade investment relationship with countries right across the African continent. But now is the time—I firmly believe this and so do all members of the committee who participated in this inquiry—to re-examine our relationship with this wonderfully vibrant and diverse continent. It has almost a billion people, and millions and millions of Africans every year are moving into the middle class. Many of them will be very eager for the goods and services that we can provide. For me, it's been very clear, too, that we have much to offer each other. This is particularly the case when it comes to my focus at the moment on Western Australia and the mining industry in terms of the ability to provide some really interesting new opportunities for economic diplomacy across the continent in the areas of our sustainable development goals, achievement and many other factors.

As I said, last year I had the honour of representing the Australian government at Mining Indaba, and one of the things that struck me the most when I came back after a week there of engaging with hundreds of delegates from across the African continent—from government, bureaucracy and mining companies—is that Australian companies are doing some extraordinary work in their communities across the continent. But it's a story that hasn't yet been captured or analysed further to have a look at what our companies can do in leaving a lasting legacy individually in the communities they work in. A lot of our companies, very early on, were engaging with local communities and finding out what was required in a community.

When they develop their own projects, they do things like bringing extra roads, power, sewerage, sanitation—all of those sorts of things—into the local community and not just to support their mine sites. But also, as Senator Gallacher has said, there are examples of companies now regularly working with the local community on how to better use their tenement lands. Whether it's to have new agricultural opportunities or training the local communities in providing the skills to develop their land and other associated businesses, there are some extraordinary circumstances.

I'm not claiming for a second that every single Australian company is fully virtuous in terms of what it's doing locally. But I think that, with this generation of mining executives and staff, they actually do want to make a difference because it's not only good business to engage and support the local community it is inherently the right thing for them to do. Since this visit and subsequent engagement with Australian mining companies, with DFAT and with a number of other organisations, I've got a much better understanding of those opportunities and the things that we are doing across the African continent.

Like Senator Gallacher, I'd also like to give a specific shout-out to Australia's very limited but absolutely fantastic heads of mission across the continent. They do an extraordinary job. Most of them are looking after multiple countries and Australia's interests in multiple countries. That can be very logistically challenging and brings a range of other issues as well. But they are doing an amazing job. I particularly want to commend them for the work they're doing with Austrade and the trade section of the Department of Foreign Affairs and Trade because they are looking after Australia's interests, not only looking out for the security of our personnel on the ground in some very, very challenging environments but looking for these new economic diplomacy opportunities.

Australia's relationship value, as I've come to learn, goes well beyond mining. We share significant economic and particularly security interests with many African nations. One of the opportunities I believe that we've got is because the couple of hundred—at least—companies operating across the African continent, every single day, live or die, literally, by their understanding of the security circumstances in that environment. They have significant security knowledge and understanding of the local terrorist organisations and other community issues, which I don't believe that Australian and other nations' security and intelligence agencies are making nearly enough use of. A lot of these companies are starting to work together to provide a common picture and understanding of what is happening in those areas to support other companies and other companies' staff to keep them as safe as possible.

Another shout-out for another fantastic organisation which DFAT is engaging with in a rather untraditional method—but I think in a highly successful way—goes to the Australia-Africa Minerals & Energy Group, which are based in Western Australia. They represent the Australian METS sector and extractive sectors that are working across the African continent. They provide enormously valuable liaison and cooperation with those organisations, but the fact that they're working so closely and engaging regularly with DFAT I think is a great model that we should be capturing and looking to engage and roll out in other parts of the world.

In this report, as Senator Gallacher has said, the committee makes 17 recommendations for the Commonwealth government to consider, all of which I think are eminently implementable without significant resources. A lot of them are just different ways of thinking about how we engage with countries which, while not necessarily in our immediate region, certainly are west of Western Australia. I think we can be making a lot better use of that.

These 17 recommendations stand to deepen and strengthen the relationship between the two continents and also between the businesses. I am delighted that the bipartisan report has included a recommendation on providing more detailed advice to Australian businesses that are currently operating on the African continent and those that are looking now to engage in Africa on how to utilise the local knowledge that we already have gained through other companies and from DFAT.

Another significant recommendation that I would like to highlight in the short time I have left is the recommendation that DFAT review their Smartraveller advice platform with a view to providing more tailored and specific information to Australian businesses operating on the African continent. Whether it's because we have limited heads of mission across the continent or whether it's because—as some of the African heads of mission who presented to the committee advised—we don't necessarily have a deep understanding of what goes on in each country, I think we do a disservice to those African nations, and also to Australians who want to engage with those companies. The fact that we have very generic and often very sensationalist and alarmist travel advice serves neither those countries nor our country very well. I commend this report to the Senate and I seek leave to continue my remarks later.

Leave granted; debate adjourned.

Concetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I particularly thank the committee for doing this inquiry. As both Senator Gallacher and Senator Reynolds have said, it's an important report, and I'm sure it will certainly be one that I, as Minister for International Development and the Pacific, and, more broadly, the department of foreign affairs will look at very, very closely.

I was fortunate to visit Africa in January last year. I attended the meeting of the African Union in Addis Ababa and also took the opportunity to open our embassy in Addis Ababa. Then I went down to South Africa as well. Senator Gallacher put on record the statistics about Australia's presence in Africa and they are, indeed, very impressive. There are about 170 Australian Securities Exchange listed companies worth an estimated $40 billion operating in about 35 African countries. I'm pleased that this inquiry has brought to light the work that those companies are doing. I was advised of the very positive work that a lot of those companies were doing, particularly in their community engagement. It's good to see that this report has brought that to light.

Of course, we do have strong and very enduring ties. Let's not forget the African diaspora. There are about 500,000 people of African heritage in Australia. I understand that, conservatively, they remit about $1 billion back to Africa. The remittances from Australia to Africa are very important.

There are a couple of things that Australia is doing in Africa that I do want to mention in particular. During my visit, I was very pleased to announce that Australia would partner with the African Union Commission to support its very important work in empowering women in Africa. This was a million-dollar investment to complement the gender focus of our Australian development assistance across Africa, including our flagship Australia Awards program. As at last year, we had over 5,500 Australia Awards alumni, and the professional development that this has given to people in very important areas is very pertinent to Africa's development.

I will also mention a couple of really inspiring visits that I had. One was work that was being done by CBM Australia, which supported the national clubfoot program at the CURE children's hospital. We had a wonderful visit to the Hamlin fistula hospital to see the wonderful work that Catherine Hamlin does and that her foundation has done in that hospital. She has done this work and given hope to so many women across Africa who have suffered greatly as a consequence of childbirth and the problems associated with childbirth. To see some of their faces in that hospital was truly amazing. She is truly an amazing woman.

Debate interrupted.