International Chamber House
Level 5, 121 Exhibition Street
MELBOURNE VIC 3000
THE AUSTRALIAN CHAMBER OF COMMERCE SUBMISSION TO THE FOREIGN POLICY WHITE
PAPER TASKFORCE - DEPARTMENT OF FOREIGN AFFAIRS AND TRADE
Introduction: Who we are?
The Mission of the Australian African Chamber of Commerce
The Australia Africa Chamber of Commerce (AACC) is a national organisation that is dedicated to
facilitating trade with Africa, by providing the very best quality research, networking events and
business matching services between Australia and Africa.
The AACC brokers relationships between the two continents through trade delegations and briefings
with the Department of Foreign Affairs and Trade and respective Trade and Investment Centres, major
conferences such as “Africa Down Under” Mining conference, the Africa Australia Infrastructure
Conference and engagement through Africa Connect and other networking events. In facilitating trade
missions to and from Africa, the AACC strives to offer access to both African and Australian business
and investment opportunities.
The AACC is committed to working with African nations to reverse unemployment and
underemployment by focusing on vocational education and upskilling. Africans and Australians enjoy
warm fraternal relations. Close collaboration between Austrade and AACC could help foster
entrepreneurship partnerships. This could to promote investment in Africa as a viable new market for
the expansion of Australian SME’s. This initiative can be extended to sharing Australian business
innovations with host governments. The AACC is exploring ways to deepen business links with Africa.
We believe a growing relationship would mutually be beneficial to all.
It is on this foregoing basis that the AACC’s Submission to DFAT is made on the following selected
focus areas:
How should we define Australia’s national interests in a changing world? How should our
values underpin Australia’s foreign policy? What should we do differently? How can we do
better?
We should define national interests informed by our domestic policy of a united multicultural Australia
premised on the traditions of freedom, democracy, human rights, security, rule of law, and equality of all
before the law irrespective of one’s gender, race, class, culture, religion and age. Thus, in pursuit of its
national interests in the global setting, Australian engagement should mirror its domestic values.
The rise of populism in the western world advocating economic nationalism seeking to impose
protectionist policies, not only negates Australia’s values but also undermines the integrative process of
globalization driving trade, increased investment and the resultant growth. As a western middle-power,
Australia is not immune from direct and indirect influence by these international forces. There are
dangers looming on the horizon with the potential to fracture the Australian national fabric of social
cohesion engendered for decades through the policy of multiculturalism. Domestic cohesion is our
important international capital.
As a member state in the Indian Ocean rim, the Australian foreign policy towards Africa is in this regard
crucial for its economic and security interests in the Indian Ocean region. With more than a billion
people, the majority of whom are young, Africa represents a huge diverse potential market for
Australian trade and investments in the long term. Africa’s 200 million youth population (between ages
14-24) is forecast to double by 2045. High unemployment, especially youth underemployment, poses a
threat to long-term political stability in Africa. It is in the Australian national interests that trade and
investments in Africa are directed towards sectors that directly impact upon job creation, poverty
alleviation through equitable, environmentally sound and sustainable economic development. In this
regard the AACC submits that a special focus of Australia’s engagement in Africa prioritize the
enhancement of the vocational education sector. This in tandem with the African Union (AU) 2017
theme that seeks to “harness the demographic dividend through investments in the youth”. This is
important to equip African youth with technical and vocational skills towards economic diversification.
Support for cottage urban and rural food processing industries is crucial for employment creating
economic growth. Apprenticeships and Traineeships and hands on-experience for African youth can be
vital learning strategies in extractive and agricultural sectors.
AUSTRALIA HAS DIVERSE INTERESTS THAT SPAN THE GLOBE - Which countries will matter
most to Australia over the next 10 years? Why and in what ways? How should we deepen and
diversify key relationships? - Which global trends, such as developments in technology,
environmental degradation and the role of non-state actors, are likely to affect Australia’s
security and prosperity? How should Australia respond?
Australia should increase engagement and partnerships with countries in the Indo-Pacific region,
especially in Africa with more than a billion people with a growing young population - It is estimated that
Africa will have close to half of the world’s youth population by 2040 - the much anticipated
demographic dividend means more investments in human resources development - in line with the
African Union’s stated objective of harnessing the demographic dividend through investments in the
youth. The development of Australia policy on Africa should be directed towards engaging the growing
African youth market integral to our political, economic and security interests in the Indo-Pacific region,
particularly the Indian Ocean Rim.
Africa possesses 30 per cent of the World’s minerals and as such it possesses a huge potential for
Australian companies to invest in. This has shaped Australia’s relationship with Africa, which is
economic in character. By 2011, there were estimated 220 ASX – listed companies operating in over 1,
000 projects across 30 African nations – glaring cases of intangible socio-economic spin-offs for the
majority of local populations.
Australian mining companies should strive to enhance development in various sectors such as safety,
environment management and rehabilitation and how a host nation can derive long- term benefits from
mining (Barnett, 2011). Ensuring developing countries get a fair royalty base to support their economy
remains the most contentious issue to be resolved in many mining jurisdictions. The salient question is
how to ensure that African governments do get a fair share of mining royalties to benefit from their
countries’ resources (Barnett, 2011). If this question is not properly managed, it has the potential to
engender policy uncertainty of many host governments. Multinational National Enterprises (MNEs) can
bargain with local governments, lobby local governments, develop political connections with local
politicians; use joint ventures with local firms or adopt other measures to mitigate political risks. (Lu,
Huang and Muchiri, 2017).
The African Union’s Mining Vision offers a broad continental policy framework: “…a model for
transparent, equitable and equitable optimal exploitation of mineral resources to underpin a broadbased sustainable growth and socio-economic development” (The Africa Mining Vision, AU 2009). This
represents a “paradigm shift away from commodity export dependency towards enhancing Africa’s
industrial base through greater local beneficiation” (The Africa Mining Vision, AU 2009).
The rise of resources nationalism is reflected in the currency of different indigenization policies in some
African mining jurisdictions such as “Black Economic Empowerment” in South Africa with dubious
socio-economic impact for the majority of people. However, compliance with African countries policy
requirements such as such, for example, South Africa’s “Sustainable and Responsible Investment”
(SRI) underpinned by the United Nation’s Principle for Responsible Investment, which provides a
criteria for environmental sustainability, social development, governance (ESG) of share ownership and
investment decisions. Salient issues of country ownership, capacity development and knowledge
sharing cannot be ignored. For example, the South African Sustainable and Responsible Investment
(SRI) products and strategies, promoting environmental sustainability are notable. This policy draws
from a study based on a qualitative, empirical survey of 22 organizations which are signatories to the
United Nation's SRI product. The environmental, social, and governance (ESG) criteria informs policy
decisions on investment and share ownership is fundamental for a “”win- win” outcomes. Such
negotiated agreements concerning African governments’ indigenization policies can enhance certainty
and business confidence. Thus, it is in Australia’s national interest to promote ethical and corporate
social responsibility, safe, sustainable environmental friendly development policies with just benefits for
the local populace. The empowerment of communities residing in mining areas is thus key to a stable,
healthy, skilled and productive workforce. The improvement of the general working conditions of the
African mine workers such as housing, health, further skilling and a fair remuneration make good
business sense for Australian investments.
The effects of the down turn on the global commodities market that curtailed production in several
mining sectors exacerbated the high rate of unemployment on the continent. The establishment of
down-stream production such as in the processing and beneficiation industries could help alleviate the
endemic high youth unemployment rate, a ticking political time-bomb across many African nations.
While the bulk of Australian aid was in the past invested in the development of human resources and
agriculture, it has shrunk considerably over the years at the detriment of the youth. The development of
skilled manpower with a special focus on technical and vocational education is essential for unlocking
about 30 per cent of the World’s mineral wealth that Africa is endowed with.
The African Australian diaspora represents is an untapped resource with great potential for deepening
relations between Australian government/s and business companies to grow while contributing to the
Africa’s just, sustainable and environmentally friendly economic development.
Thus, the AACC suggest Government to facilitate linkages between African vocational education
development country’s needs and the potential business ventures from within the African Australian
diasporic organizations and communities. Easing access to capital for prospective entrepreneurs in
both home and host countries is vital. Moreover, the AACC’s suggests the Government provide
prospective business investors with ethical and regulatory compliance requirements in both Africa and
Australia.
AUSTRALIA IS AN INFLUENTIAL PLAYER IN REGIONAL AND INTERNATIONAL
ORGANISATIONS - Which regional and global organisations matter most to us? How should we
support and shape them? How can we maximise our influence?
The rise of nationalist populism in parts of the Western world, riding on the challenges of globalization,
advocates economic protectionism, which eschews multilateral trade treaties such as Tran-Pacific
Partnership (TPP) is recognized. Australia should continue to cultivate its multilateral engagement with
a broader general focus on the Indo-pacific region and in particular with the African Union and its
regional economic blocs such as the Southern African Development Community (SADC), East African
Community (EAC), and Economic Community of the West African States (ECOWAS) etc.
Austrade is well positioned to stimulate and facilitate potential business start-up ventures between the
African diasporic organizations such as the AACC in partnership with African countries and businesses.
It is therefore essential that market research be conducted to compile a market information package,
which identifies quality opportunities; provides market intelligence information gathered –in-market in
the vocational education sectors of the African countries – for readily usage by the African Australian
diaspora business ventures.
AUSTRALIA USES A RANGE OF ASSETS AND CAPABILITIES TO PURSUE OUR
INTERNATIONAL INTERESTS- What assets will we need to advance our foreign policy interests
in future years? How can we best use our people and our assets to advance Australia’s
economic, security and other interests and respond to external events? - How can Government
work more effectively with non-government sectors, including business, universities and NGOs,
to advance Australia’s interests?
According to the ABS data estimates of the 2011 census, there are about 380, 000 African born
migrants in Australia. For example, Victoria, the location of the AACC headquarters, is home to 59, 000
African Australians. Many members of the African diaspora in Australia are highly skilled as academics,
medical and legal personnel, engineers, accountants and other professionals. In 2005, the African
Union adopted a definition of the “African Diaspora” as consisting “of people of African origin living
outside the continent, irrespective of their citizenship and nationality, and who are willing to contribute
to the development of the continent…” (AU, 2005).
By virtue of their cultural heritage, the African Australian diaspora has the advantage of “insider”
knowledge and experience of African societies and economies. The African diaspora has the potential
to “serve as a bridge between home and host countries on account of their dual membership, stand
them in good stead to serve interests of both the home and host country. The African Australian
diaspora considerable “social capital”, which is defined as “networks together with shared norms,
values and understanding that facilitate cooperation within and among groups” (EU 2005, 44). If
properly harnessed through civil society, government and business engagement, the African diaspora,
especially its youth segment of the population, has the potential to broaden and deepen Australia’s
relationship with Africa.
The recommendations from the 2005 European Union study on migration are still relevant for
sharpening the focus of the Australian government’s foreign policy regarding its African diaspora:
“Appropriate and timely policies needed to be in place to recognize and harness the potential
contributions by and beneficial interaction with diaspora in support of development and growth in both
their home and host countries” (EU 2005, 15). Pivotal amongst recommendations is the need for the
development of a policy aimed at linking the diaspora into the development process and engaging in
activities with expatriates or their associations…” (EU 2005, 15). For such an engagement to be
successful, policymakers “should have a clear idea of their own development needs and gaps to be
bridged and the potential contribution diaspora’s could make to achieve these goals, as well as the
diaspora’s own development agenda and objectives”.
Thus, consultation with the diaspora, concerning the design and implementation of their home country
development policies is important. For example, the International Development Committee of the House
of Commons launched an inquiry in July 2003, which conducted policy advisory sessions with diasporic
communities (International Development Committee, House of Commons 2003). Such an approach
could enhance foreign direct investments, eliminate bureaucratic obstacles…improving business
environment and opening new windows (EU 2005, 23). With the rise of the current nationalist populism
in the developed Western countries, the diaspora may help to “bridge the transnational space and
facilitate (increased) transnational cooperation” (EU 2005, 15).
Authors:
Dr Mochekoe Stephen Rametse
Dr Nthati Rametse
On behalf of Australia Africa Chamber of Commerce
28 February 2017.