On behalf of the Joint Standing Committee on Foreign Affairs and Trade, I present the committee's report entitled Strengthening Australia's trade and investment relations with the countries of Africa.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—I'm pleased to present to the House this report. Africa is undergoing a dynamic economic transformation. It is home to some of the world's fastest growing economies; a rapidly expanding population, particularly its youth population; increasing urbanisation; and a growing middle class. The African continent represents one of the most significant opportunities for Australia's trade and investment agenda. At a time of growing geopolitical uncertainty and shifting global supply chains, expanding engagement with African economies offers Australia an opportunity to strengthen existing relations and develop trusted new partnerships. However, despite our longstanding cooperation and diplomatic relationships, the committee found that Australia's economic engagement with Africa remains well below potential. The inquiry examined the current nature of Australia's trade and investment relationship with Africa. While Australia has maintained a substantial presence in the resources sector across many African countries and has developed valuable commercial partnerships over several decades, total trade and investment flows remain modest when compared with the scale and diversity of opportunities available.

The committee heard that Australian businesses often confront a range of barriers when seeking to enter or expand within African markets. These include perceptions of sovereign and commercial risk, regulatory complexity, logistical challenges and insufficient access to market intelligence and in-country diplomatic and trade support. We heard that many Australian businesses remain unfamiliar with the considerable economic diversity that exists across Africa's 54 nations. Importantly, the evidence demonstrated that Africa should not be viewed as a single market. Rather, it is a continent comprised of diverse economies at varying stages of development, each offering distinct opportunities for trade, investment and commercial partnerships. The committee was particularly encouraged by evidence regarding opportunities for Australian exporters to diversify beyond traditional sectors. Australian expertise is increasingly sought after in critical minerals, renewable energy, agribusiness, education and training, digital technologies, health care and infrastructure development. As African economies industrialise and modernise, demand for Australian expertise and skills is likely to grow significantly.

The inquiry also considered the role of the African Continental Free Trade Area. When fully implemented, the African Continental Free Trade Area will create one of the world's largest free trade areas, supporting greater economic integration, reducing trade barriers and facilitating more efficient regional supply chains. The committee heard consistent evidence that the African Continental Free Trade Area has the potential to make African markets more accessible, predictable and attractive for Australian businesses. Australia's memorandum of understanding with the African Continental Free Trade Area provides substantial opportunity for collaboration, particularly Australia's expertise in regulatory and technical standards, but we must engage early.

The committee found that realising opportunities for diversification will require more focused engagement from the Australian government. Success in African markets demands long-term commitment, strong relationships, informed risk assessment and coordinated government support mechanisms. A recurring theme throughout the inquiry was the critical role that government can play in unlocking opportunities and reducing trade and investment barriers. The committee heard support for strengthened trade promotion, enhanced market intelligence, greater diplomatic and trade representation and improved coordination between government agencies, industry, the Australian African diaspora and the tertiary and vocational training sectors.

This report presents a series of recommendations aimed at strengthening Australia's economic engagement with Africa. These recommendations seek to provide a road map to improve Australia's trade architecture, increase commercial awareness, support export diversification and strengthen investment partnerships. At its core, this report is about partnerships—partnerships that support diversification, resilience and future prosperity. As global economic conditions continue to evolve, Australia must broaden its trade and investment agenda. Africa presents not only a significant economic opportunity but also an opportunity to deepen partnerships with a region that will play an increasingly important role in the global economy throughout the 21st century. The committee believes that, with strategic Australian government engagement and a focused long-term vision, Australia can develop a more ambitious and mutually beneficial economic relationship with the countries of Africa.

On behalf of the committee, I thank all those who contributed to this inquiry, including Australian exporters and investors, industry groups, academics and government agencies. Thank you also to African diplomatic representatives and members of Australia's African diaspora community. Their evidence provided valuable insights into both the opportunities and challenges shaping Australia's economic engagement with the African continent. I thank my fellow committee members for their constructive and collegiate engagement throughout the inquiry and commend this report to the House. I move:

That the House take note of the report.