African resources set for major growth
OUT AND ABOUT: Opening the Africa Down Under conference in Perth, Special Minister for State Gary Gray told the audience Africa was destined to be the continent of the twenty-first century.
“The Africa of today is a vastly different continent from even ten years ago,” Gray told delegates that had gathered from around the globe.
‘Peace, political, economic and financial reforms have set the stage for encouraging economic growth.”
Gray didn’t surprise anybody in an audience comprising Australian resources sector heavyweights when he said it was their sector which is fundamental to this economic growth and the strongly performing resource sector of Africa.
He identified Australia’s mining culture as an ideal fit for it to be a natural partner for Africa.
There are currently many Australian-based, ASX-listed companies that share Gray’s opinion.
Australian minerals and resource companies are operating more projects in Africa than they are in any other foreign region of the world, which is where Western Australia comes into play.
Set sail from Perth and if you manage to avoid the annual schoolies festival on Rottnest Island your next stop is South Africa.
The Roadhouse spoke with a number of delegates in the conference arena whom expressed excitement and pleasure to be working in a vibrant encouraging mining environment.
As gray pointed out, Australia possesses the best mining practices, practitioners and the best environmental standards to support development as well as the associated skills and technology.
This has led to a mining industry that has enjoyed a time of extraordinary growth.
The success of Western Australia-based companies in the last decade, buoyed by record commodity prices and the rise of the Chinese and Indian economies has been well documented.
“But this growth is also in part due to an increased focus by Western Australian miners on Africa,” Gray said.
“Seventy per cent of the top ten growth companies of the past decade in Western Australia have assets in Africa.”
That statistic wasn’t lost on Foreign Affairs Minister Kevin Rudd who, although was unable to be present at the conference, made an appearance via a video presentation.
The former Prime Minister continued where Gray had left off, extolling the virtues of Australia’s participation in the African mining sector.
“This investment has absolutely transformed Australia’s relations with African counterparts,” Rudd said.
“It has brought our governments and private sectors closer together.
“It has created new opportunities for trading goods and services and has made unprecedented contributions to economic growth and development.”
Everybody is eager for this growth and development to continue, especially the Africans, and probably more so the Australian companies that have invested a lot of time and money, so far, in establishing themselves on the continent.
For this to continue more Australian investment, or assistance in developing the natural resources sectors in Africa, will go a long way in helping to deliver economic benefits.
“Everyone here is an African optimist – and there is a cause for optimism,” Rudd said.
“Though the pattern is not universal the trend is clear. Africa is changing for the better. Democracy, accountability and governance in many countries across the continent are improving.”
According to Rudd four of the top ten fastest developing economies in the next five years will be operating within Africa.
The continent has a growing middle-class, set to rival that of China’s with one third of its billion citizens now categorised as such.
Foreign-direct investment to Africa increased from $9 billion in 200 to $62 billion by 2008.
“Africa’s commodity boom is just starting,” Rudd said.
“Africa has, arguably, the world’s richest mineral and energy deposits. It is estimated to have 30 per cent of global mineral resources, but only five per cent of exploration expenditure.
“Australia is at the forefront of this exploration and investment and has opportunity to expand these horizons even further,”