Australia remains committed to building a relationship with Africa, despite the recent abrupt decision by Austrade to close its office in South Africa in lieu of a desk in Nairobi, Kenya.

Speaking on the sidelines of Paydirt’s African Downunder conference, federal Resources Minister Madeleine King noted that while she could not elaborate on the reasons behind the closure, a continued relationship with Africa was critical.

The Australia-Africa Minerals and Energy Group (AAMEG) is calling on the Australian government to reconsider the decision to close the South African office, with CEO Roger Stanley saying the decision would mean the government agency would no longer be present in Australia’s top African investment destination.

“Not only is South Africa widely acknowledged as a gateway to the continent, but it is also Australia’s largest export market in Africa, with two-way trade in goods and services totalling A$3.14-billion in 2021,” Stanley said.

“The country is also renowned for the depth, experience and expertise of its mining industry and many Australian miners, explorers and mining equipment, technology and services (METS) companies operating across Africa have benefited from partnerships with South African companies.”

Stanley noted that while a presence in Nairobi would put Austrade in close proximity to considerable exploration, development and mining activities by Australian companies, particularly those in Tanzania, the location did not offer the same opportunities as those afforded by South Africa.

“That this abrupt decision was taken without any known stakeholder consultation, including with AAMEG, further calls into question Austrade’s commitment to supporting Australia’s international mining interests.”

In a presentation to Paydirt’s Africa Downunder conference, King that noted the potential for partnerships between the nations of Africa and Australia, particularly in the METS sector, was enormous.

“The METS sector is crucial to the evolution of mining around the globe as operators, including those in African countries, look to extend mine life and control costs.

“Many Australian mining and METS companies have been active across Africa for decades. The opportunity for mutual growth in the Australia-Africa economic partnerships in METS as well as other sectors is enormous,” King said.

She noted that Australia’s METS sector was one of the most innovative in the world, contributing approximately A$90-billion Australian dollars annually to the economy, with yearly exports of at least A$27-billion dollars.

“Companies can capitalise on our track record in innovation, driven by the need to improve operations or reduce costs in a remote operating environment. The services Australian METS companies offer to the global marketplace are incredibly diverse.

“From remote asset management to big data analytics, machine learning applications and environmental monitoring services, these companies have established an impressive footprint across the globe – including in Africa,” King said.