As a result of the Brexit vote, there has been a major turn around in global business. Africa as well is nursing the Brexit aftermath.
The exit of the United Kingdom from the European Union is indeed a big cut for the organization and the world at large.
UK played a very significant role under the EU in terms of internationalism, social freedoms, human rights and inclusive global development.
As the world still looks on at the instant reverse in line with Brexit aftermath, some African countries are set to endure their losses. The UK under the EU helped to impact on trade, aid and diplomacy in Africa.
South Africa is currently edgy on the future of its trade with the UK as an EU-independent nation. It has lost an additional 8% from the initial 21% against the US dollar.
“If, as some forecast, the UK falls into a technical recession, that could reduce trade and investment between South Africa and the UK. And the UK is South Africa’s fourth-largest trading partner.”–BBC
As part of the EU, there are certain economic benefits for nations. Except the UK retains its previous trading policies as an EU nation, existing trade policies between Africa and the UK will have to be renegotiated.
In any case, experts have argued that there is also a possibility of better economic polices with the UK as an independent nation.
Did you know that the 2011 census revealed that there are about 1.8% black Africans in England and Wales? Africans overtime have generally felt safer in the UK than in other EU countries.
About 6% of Kenya’s exports and 4% of Nigeria’s exports end up in the UK. The currencies of both nations face pressure at the moment. In other words, their capital inflows have slowed down.
In sub-Saharan Africa for instance, there has been downturn in prices of goods. Kenya fears its loss from the Brexit aftermath with regards to tourism, trade and financial channels. Countries like Nigeria will find it difficult to obtain external loans from the UK. Economies like Nigeria, Angola and Gabon will face an increase of vulnerable employment.
It is worthy to mention that the leading cause for Brexit is targeted on immigrants and job creation. As UK severs ties with EU, there is a most possible increase in xenophobic and hate crimes in the country. This is a major concern for African immigrants in the UK.