Paydirt is proud of the work it has done to raise the profile of Australian-African trade and investment relations over the last 25 years but for all the success, there is still much work to be done.
When Paydirt started Africa Down Under in 2003, the Australian-African resources space was the domain of a few hardy, slightly batty souls prepared to explore and develop projects on a continent still being ravaged by the AIDS epidemic, overwhelming poverty and a chronic lack of both physical and regulatory infrastructure. Investors were at best sceptical and often downright dismissive about the chances of getting a return on any African investment.
More than two decades on and while disease, poverty and underdevelopment still persist in many parts of the continent, there are few mining investors who dismiss the region out of hand.
We have charted the numerous success stories across dozens of countries, some of which have seen ASX-listed companies take assets from discovery to production, others which have seen them divest their interest for hundreds of millions of dollars.
Regardless of the individual outcomes, these Australian companies have unilaterally left their host countries, communities and environments in finer fettle than when they began.
Governments across the region recognise the advantages of attracting Australian investment. For many, Australian companies outrank all other foreign investors. ASX-listed companies may not have the chequebooks of the Western majors or Chinese state-sponsored companies, but their project execution and ability to work in and with host communities is unparalleled.
Unfortunately, there is still a knowledge gap when it comes to Australian government understanding of our investment in the African resources sector.
Last month, Paydirt executive chairman Bill Repard and I were asked to appear at a public hearing for the Trade Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry into strengthening Australia’s trade and investment relations with Africa.
During our 25-minute submission, we presented our thoughts on the relationship – past, present and future – and highlighted areas of success, as well as those where greater involvement from Australian government would be welcome.
Without having seen any published outcomes, I can report a few of our comments and recommendations raised eyebrows among the parliamentary panel members.
One was the paucity of Australian diplomatic representation on the continent. We have nine missions and one trade office on the continent. In contrast, Canada – a similarly sized nation with a similarly sized investment profile in Africa – has 44 missions.
It is understandable that Canberra’s outlook points north to North Asia, and across the Pacific to the US, but it is apparent to us that the lack of Australian presence in Africa stems from a fundamental misunderstanding of our trade and investment relationship.
Much of Canberra simply doesn’t realise how strong Australian investment is on the continent. Not only is it large – $60 billion by the most reliable estimates – but it is also impactful. The countries Australian miners invest in, from Lesotho, Botswana and South Africa in Southern Africa, to Cote d’Ivoire, Guinea and Mali in West Africa.