Australia Fosters Commitment to Building Strong Ties with Africa Despite Closure of South African Office
Australia affirms its dedication to cultivating a robust relationship with Africa, even in the face of the recent unexpected decision by Austrade to close its South African office in favor of establishing a desk in Nairobi. While the specific reasons behind the closure remain undisclosed, Federal Resources Minister Madeleine King emphasizes the pivotal importance of maintaining a continued relationship with Africa.
The Australia-Africa Minerals and Energy Group (AAMEG) is urging the Australian Government to reconsider the closure of the South African office. AAMEG CEO Roger Stanley highlights that this decision would mean the government agency would no longer have a presence in South Africa, which serves as Australia’s premier African investment destination.
South Africa is widely recognized as a gateway to the continent and stands as Australia’s largest export market in Africa, with two-way trade in goods and services amounting to A$3.14 billion in 2021. Moreover, the country’s mining industry is esteemed for its depth, experience, and expertise, and numerous Australian miners, explorers, and mining equipment, technology, and services (METS) companies operating across Africa have greatly benefited from partnerships with South African counterparts.
Stanley further emphasizes that although having a presence in Nairobi would geographically position Austrade in close proximity to significant exploration, development, and mining activities conducted by Australian companies, particularly in Tanzania, it does not offer the same advantages as those afforded by South Africa. The abrupt nature of the decision and the lack of consultation with stakeholders, including AAMEG, raise concerns regarding Austrade’s commitment to supporting Australia’s international mining interests.
Federal Resources Minister Madeleine King, speaking at Paydirt’s African Downunder conference, highlights the immense potential for partnerships between African nations and Australia, particularly in the METS sector. This collaboration is critical as the METS sector is vital to the global mining industry’s evolution, enabling operators in African countries to extend mine life and control costs effectively.
Australia’s METS sector is renowned for its innovative capabilities, contributing around A$90 billion annually to the economy and exporting at least A$27 billion every year. The services offered by Australian METS companies to the global marketplace are diverse and encompass remote asset management, big data analytics, machine learning applications, and environmental monitoring services. These companies have already established an impressive presence across the globe, including Africa.
Despite the closure of the South African office, Australia remains steadfast in its commitment to strengthening ties with Africa. The relationship between the two regions holds immense potential, particularly in the METS sector. However, it is crucial for the Australian Government to reconsider the decision and ensure that Austrade continues to support Australia’s mining interests in South Africa, which remains an invaluable investment destination and a gateway to the continent.
