Africa today has a population of over 1.4 billion people projected to reach 2.5 billion by 2050. There are approximately 170 Australian mining companies active on the continent and the current overall value of current exploration, extraction and processing exceeds $40 billion. Africa’s GDP growth expected to average 3.8 percent this year against Australia’s forecast growth for 2023-24 at 1.5 percent.
The $23 million aid package contributed by Australia appears insufficient and out of touch with the realities on the ground.
There are practical steps Australia can take to maximise the impact of its aid and improve the optics of its humanitarian efforts. Canberra should explore ways to better leverage existing stakeholders including development partners, international organisations, the business sector in Australia and Africa, the growing African diaspora in Australia and Africans who have studied at Australian educational institutions in addition to local NGOs and community-based organisations. Local groups have better access and understanding of the local context, enabling them to deliver aid more effectively and efficiently.
A well-considered strategy will create business opportunities for Australia, especially in the economically strategic sectors of mining, agricultural exports and education and enhance the humanitarian response in the Horn of Africa.
Transparency and accountability are critical. The administration of Australia’s aid to the region through the Direct Aid Program (DAP) requires urgent attention. Robust monitoring and evaluation mechanisms are necessary to track the impact of aid, whatever the scale, to ensure funds are used effectively. Regular reporting on the progress and outcomes of aid initiatives will build trust and credibility both domestically and internationally.
At $4.96 billion for 2024–25, Australia’s overseas development assistance budget as a percentage of gross domestic product represents a marginal increase on previous years and continues to trail well behind many other members of the Organisation for Economic Co-operation and Development. Irrespective of its capacity to further increase overseas development assistance, Australia is well positioned as a middle power to amplify advocacy for enhanced international cooperation and burden-sharing.
The proposed aid package to the Horn of Africa is a positive step, however, it is insufficient to meet the region’s substantial challenges. A thoughtful and comprehensive strategy cognisant of the perceptions and impacts of Australia’s humanitarian efforts can simultaneously improve the lives of the most vulnerable and strengthen mutual economic opportunities. While Canberra might not have the strategic interest or capacity to deepen engagement with Africa at this juncture, for the sake of future Australians optics matter.