Why Africa matters in Australia’s trade diversification journey

Australia and Africa are already connected through business, education, migration, investment and people-to-people links. As African economies continue to grow, there is an opportunity to build on these existing connections to create stronger commercial partnerships and shared prosperity.

To explore these opportunities, Austrade hosted the Australia-Africa Trade and Investment Roundtable in Melbourne in September, bringing together senior representatives from business, industry and government. 

The roundtable was delivered in partnership with Trade Diversification Network member Australian Industry Group (Ai Group) and supported by the Australia Africa Chamber of Commerce (AACC). Discussions explored how Australia can strengthen economic engagement across Africa and unlock new pathways for trade and investment. 

Deepening Australia’s engagement with Africa 

As Australian exporters seek to build resilience and diversify, Africa is emerging as a destination with real long-term potential, says Jemima Schilling, Austrade’s Trade Commissioner to Africa.

‘By 2050, one in four people on the planet is expected to be African, making the continent one of the world’s most significant future growth markets,’ Schilling says.

‘For Australian businesses, this creates opportunities not only to export products and services, but also to build long-term partnerships. Australia already enjoys a strong reputation, and there is a genuine appetite from local businesses and governments for deeper engagement with Australia.’ 

In his keynote address to the roundtable, Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite highlighted the importance of strengthening Australia–Africa economic relationships and advancing long-term partnerships. 

Minister Thistlethwaite also attended Africa Down Under, a forum for Australian–African business and government relations held in Perth in early September. 

‘One of the strongest messages I heard at Africa Down Under was the importance of partnerships,’ he says. ‘That includes partnerships between governments, businesses, universities and industry organisations. It also includes creating the right conditions for trade and investment to grow.’

A diverse region with multiple opportunities 

Improving awareness and understanding of African markets will be critical to unlocking future commercial opportunities, which vary considerably from country to country. Businesses will require a targeted approach based on market maturity, sector demand, regulatory environments and local partnerships. 

‘The message is clear,’ says Louise McGrath, Head of Industry Development and Policy at Ai Group. ‘Africa cannot be viewed as a single market, but as a diverse region offering major opportunities across mining, critical minerals, agriculture, tourism, water infrastructure, education, technology and workforce development.’

For Australian businesses that are navigating or have identified opportunities, market intelligence, trusted networks and practical help from government and industry will be crucial.

‘Australian businesses that have had the most success are those that invest time in understanding the market, building relationships on the ground, and finding the right partner,’ says Schilling.

‘The Austrade Africa team can assist with identifying and connecting Australian exporters with trusted local partners to successfully navigate local markets.’ 

Delegates at the roundtable explored how Australia can strengthen economic engagement across Africa and unlock new pathways for trade and investment.

Opportunities matched to Australian strengths

Australian expertise aligns strongly with emerging demand across African markets.

Opportunities are growing across mining and critical minerals, mining equipment, technology and services, agribusiness, infrastructure, water management, education, workforce development, digital capability and climate resilience.

Many of these sectors reflect areas where Australia has built a strong international reputation, opening doors for both commercial partnerships and knowledge exchange. 

‘Australia has much to offer as a trusted partner, particularly in technical standards, ESG, climate solutions, water management and mining expertise,’ says McGrath. ‘These capabilities will all contribute to greater prosperity and international connectedness in Africa.’

Schilling observes that ‘across Africa, there is a growing emphasis on the sharing of technical expertise and sustainability practices, skills transfer, and capability development as drivers of long-term commercial engagement across all sectors.’

Building long-term education and skills partnerships

Education, skills development and workforce capability are emerging areas where Australia can contribute to long-term economic growth across African markets. 

Associate Professor David Mickler is the Dean Global, Africa, Founding Director of Curtin University’s Centre for Australia–Africa Relations and Co-Chair of the Australia Africa Universities Network. He says Australian organisations are well placed to support capacity-building initiatives alongside commercial activity.

‘Given the significant demands by Africa’s youth for quality education and employment, in addition to pressures to meet local content policies, Australian businesses operating on the continent should partner with Australian universities to sponsor and support capacity-building through education and training.’

Building enduring economic connections also requires greater understanding between both regions, Professor Mickler says.

‘Long-term economic connections between Australia and Africa need to be built on both trust and principle, including by forming partnerships that are sensitive to contexts, achieve mutual benefit, and realise reciprocal value,’ he says. 

‘There is also a need for better Australia–Africa literacy on both sides of the Indian Ocean to identify real opportunities and move beyond unhelpful stereotypes.’

Government and industry help reframe perceptions

Through initiatives such as the Accessing New Markets Initiative and the Trade Diversification Network (TDN), Austrade and national peak industry bodies are supporting Australian businesses to diversify their export markets and take advantage of new growth opportunities.

‘As a true collaboration between industry and government, the TDN is empowered to identify opportunities, address any barriers and work together for shared goals,’ says McGrath.  

‘Often market perceptions are based on out-of-date information and prejudices. Austrade and the TDN can cut through those perceptions with accurate and timely information that can give the required confidence to explore options in under-explored markets.’