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Effects Of Brexit Results On The African Largest Economies by CaptainEColeJnr: 3:44pm On Jun 24, 2016
Brexit will be terrible for Africa’s largest economies

Lily Kuo&Yomi Kazeem

Quartz africaTime to go.(Reuters/Reinhard Krause) Now that the United Kingdom has voted to leave the European Union, African economies—already struggling from slowing demand from China and flat commodity prices—have now been thrown into confusion along with the rest of the world.

“Many emerging market and frontier asset markets will come under pressure,” Razia Khan, chief economist for Africa for Standard Chartered Bank, tells Quartz. “Much will depend on how quickly someΠ sort of financial market stability can be restored.”The UK’s minister for Africa and advocate for leaving, James Duddridge, has promised that relations with the continent would only improve without the burden of the EU, but Africa’s largest economies are still likely to suffer.

SOUTH AFRICA
South Africa’s rand and trade. South Africa’s already battered economy may be the worst affected by Britain’s exit. As it became clear that the UK vote had swung toward leaving, the rand plunged during early morning trading, becoming the worst performing currency after the British pound. As of mid-morning the rand had fallen more than 7%, its steepest single-day decline since the 2008 financial crisis.

Along with their peers on the London Stock Exchange,major South African companies dual-listed in London and Johannesburg are being hammered. South Africa’s close financial ties to the UK could be a problem—British banks’ claims on South African entities account for 178% of South Africa’s foreign currency reserves, according to analysts from UniCredit.Economists also worry that trade between Africa’s most industrialized economy and the UK will suffer. (The UK is the fourth largest destination for exports from the country, accordingto data from Bloomberg.) Economists at the South African university, North-West, have said Brexit could take 0.1 percentage points off the country’s annual economic growth, which already contracted 1.2%in the first quarter of this year.

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Re: Effects Of Brexit Results On The African Largest Economies by CaptainEColeJnr: 3:46pm On Jun 24, 2016
NIGERIA
Nigeria: bad timing
Britain’s exit from the EU couldn’t have come at a worst time for Nigeria, Africa’s largest economy. At a time when the government is trying to fix an economy on the brink of a recession by removing strict currency controls and also liberalizing oil prices, the immediate effect of Brexit will test the nerves of Nigeria’s economic managers as global markets plummet.


Bilateral trade between Nigeria and the UK,currently valued at £6 billion(about $8.3 billion) and projected to reach £20 billion by 2020, will be disrupted as trade agreements made under the auspices of the EU have to be renegotiated.


“For Nigeria, global risk aversion as well as a softer oil price is likely to mean that new portfolio inflows are slow to materialize,” says Khan. “This may delay the normal functioning of the newly liberalized FX market.


”Data from the National Bureau of Statistics shows that the UK was Nigeria’s largest source of foreign investment in 2015.A slowing British economy and its reverberating effects could signal a drop in investment, trade, and also remittances from the Nigerian diaspora who sent home $21 billion in 2015.Reduced trade and investment from Britain willnot necessarily be plugged by the rest of the EU, say Lagos-based economist Tunji Andrews.

“The EU will be looking to strengthen it’s internal ties, plus there’s cheaper oil from Iran, cheaper labor from China and the eastern block.

There’s really nothing we have as a competitive advantage to them right now.”Brexit is already fueling other independence campaigns. Within hours of the vote, leaders in France and Holland, Italy and Denmark called for their own referendums on leaving the EU. This sentiment is shared in southeast Nigeria as well, where government forces have spent much of the past year quelling violent protests by activists advocating for the secession and establishment of an independent country called Biafra. Having already called for a referendum earlier in the year, pro-Biafra activists may now be further emboldened.

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Re: Effects Of Brexit Results On The African Largest Economies by CaptainEColeJnr: 3:48pm On Jun 24, 2016
KENYA

Kenya’s cut flowers

Kenya faces capital flight as investors seek safe havens like US treasuries, falling exports, and pressure on the Kenyan shilling.


“It’s going to affect all of us and there’s no insurance, no position we can take to maneuver ourselves to be in a better position,” central bank head Patrick Njoroge,said last month of the possibility of the UK leaving the EU.For now, the bank says it is prepared to handle any shocks with foreign reserves of 560 billion Kenyan shillings($5.6billion), enough to cover five months of imports. Still, a weaker Kenyan shilling will make imports more expensive for a country whose import bill has been increasing more than 10% a yearover the last five years.


One of Kenya’s top exports, cut flowers, could suffer, according to the Kenya Flowers Association. Over a third of the EU’s cut flower imports come from the EastAfrican country. And the UK and the Netherlands, another country threatening to leave the EU, are the top destinations for Kenyan exports, mainly flowers. If at rade deal between the East African Community and the EU is stalled because of Brexit, Kenya would be looking at a loss of 4 billion Kenyan shillings a month, according to the association.


Renegotiating trade deals is likely to “create more uncertainty for Kenyan exports,” according to Khan of Standard Chartered.

Falling demand as a result of a slowdown or return to recession in the UK and the EU would also be bad for Kenyan trade.But it’s not all bad news. Kenya’s ties with Britain are deep and longstanding so bilateral trade and investment are likely to continue. In some ways Kenya could even benefit, according to some analysts.

The UK may be eager to establish bilateral ties afterleaving the EU, giving Kenya leverage.

The end of “British Outwardness”



Other countries on the continent are bound to be affected as well. In Egypt, the main stock index fell 1.3%, with investors worrying about a loss of British investment and demand for Egyptian exports.


The central bank of Mauritius issued a statement today (June 24th) that it had raised its reserves of gold and US dollars to reduce exposure to the pound.


“Should the need arise, the bank stands ready to take measures as appropriate to protect the best economic interests of Mauritius in the circumstance,” theregulator said.

Analysts question how Brexit will affect the EU’s support of agricultural subsidies, which critics say have hurt African farmers. The UK has been one of the bloc’s most staunch opponents of these subsidies. African countries may also have less access to international capital markets and big infrastructure projects may have to be put on hold, according to Khan.More broadly, analysts from Brookings Institution worry about how Brexit will affect the UK’s overall engagement with Africa.

As head of the G8 last year, the UK pledged to double aid to Africa. The UK has been the largest funder to IDA17, the World Bank’s concessional borrowing program.The think tank concluded ina blog post, “Perhaps the biggest impact of the Brexiton Africa would be the end of British “outwardness”—the country’s concern with and responsiveness to global development issues.”

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Re: Effects Of Brexit Results On The African Largest Economies by ForeverYoung197(f): 3:50pm On Jun 24, 2016
CaptainEColeJnr:
NIGERIA
Nigeria: bad timing
Britain’s exit from the EU couldn’t have come at a worst time for Nigeria, Africa’s largest economy. At a time when the government is trying to fix an economy on the brink of a recession by removing strict currency controls and also liberalizing oil prices, the immediate effect of Brexit will test the nerves of Nigeria’s economic managers as global markets plummet.


Bilateral trade between Nigeria and the UK,currently valued at £6 billion(about $8.3 billion) and projected to reach £20 billion by 2020, will be disrupted as trade agreements made under the auspices of the EU have to be renegotiated.


“For Nigeria, global risk aversion as well as a softer oil price is likely to mean that new portfolio inflows are slow to materialize,” says Khan. “This may delay the normal functioning of the newly liberalized FX market.


”Data from the National Bureau of Statistics shows that the UK was Nigeria’s largest source of foreign investment in 2015.A slowing British economy and its reverberating effects could signal a drop in investment, trade, and also remittances from the Nigerian diaspora who sent home $21 billion in 2015.Reduced trade and investment from Britain willnot necessarily be plugged by the rest of the EU, say Lagos-based economist Tunji Andrews.

“The EU will be looking to strengthen it’s internal ties, plus there’s cheaper oil from Iran, cheaper labor from China and the eastern block.

There’s really nothing we have as a competitive advantage to them right now.”Brexit is already fueling other independence campaigns. Within hours of the vote, leaders in France and Holland, Italy and Denmark called for their own referendums on leaving the EU. This sentiment is shared in southeast Nigeria as well, where government forces have spent much of the past year quelling violent protests by activists advocating for the secession and establishment of an independent country called Biafra. Having already called for a referendum earlier in the year, pro-Biafra activists may now be further emboldened.



How you could come up with all of these? Are u a columnist or a commentator maybe? wink

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Re: Effects Of Brexit Results On The African Largest Economies by CaptainEColeJnr: 3:57pm On Jun 24, 2016
Re: Effects Of Brexit Results On The African Largest Economies by CaptainEColeJnr: 3:59pm On Jun 24, 2016
ForeverYoung197:




How you could come up with all of these? Are u a columnist or a commentator maybe? wink
LOL
None of the above ma'am.
But I'm an "Information seeker" wink

1 Like

Re: Effects Of Brexit Results On The African Largest Economies by CaptainEColeJnr: 4:11pm On Jun 24, 2016
undecided una just dey view?
Shey this was the question y'all were asking .. see it here na

3 Likes

Re: Effects Of Brexit Results On The African Largest Economies by Nobody: 4:48pm On Jun 24, 2016
see analysis.........anyway....am noht a fan of economics undecided
****

3 Likes

Re: Effects Of Brexit Results On The African Largest Economies by Mimexy(f): 4:48pm On Jun 24, 2016
We will survive

17 Likes 1 Share

Re: Effects Of Brexit Results On The African Largest Economies by laurel03(m): 4:49pm On Jun 24, 2016
Nothing they happen jare... 9ja go find better way.. #GodBless9ja

27 Likes

Re: Effects Of Brexit Results On The African Largest Economies by Proffdada: 4:49pm On Jun 24, 2016
Who them help before? Even the current economic development in Nigeria today will be highly favoured by their exit. The bilateral trade with China is solid enough to keep us on our feet until we can run with the big boys
exit from the European Union won't drown debts BTW undecided

12 Likes

Re: Effects Of Brexit Results On The African Largest Economies by MadCow1: 4:50pm On Jun 24, 2016
So no more Shengen Visa for Boys? shocked shocked shocked

10 Likes

Re: Effects Of Brexit Results On The African Largest Economies by bettercreature(m): 4:50pm On Jun 24, 2016
Nonsense! OVERRATED selfish people

5 Likes

Re: Effects Of Brexit Results On The African Largest Economies by mccoy47(m): 4:50pm On Jun 24, 2016
Wetin concern Britain with us?

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Re: Effects Of Brexit Results On The African Largest Economies by bettercreature(m): 4:51pm On Jun 24, 2016
MadCow1:
So no more Shengen Visa for Boys? shocked shocked shocked
They were never part of schengen staten
Their policy will only affect immigrant from poor Eu countries not Nigerians

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Re: Effects Of Brexit Results On The African Largest Economies by Fanyogoyogo: 4:51pm On Jun 24, 2016
Ko kan aye
Re: Effects Of Brexit Results On The African Largest Economies by Chuksemi(m): 4:51pm On Jun 24, 2016
The time has come to brace up and face harder times. Like every other thing on earth, it will only be temporary

1 Like

Re: Effects Of Brexit Results On The African Largest Economies by Cybertext(m): 4:51pm On Jun 24, 2016
If Nigeria should pullout of ECOWAS or AU which country forex will be affected?

12 Likes

Re: Effects Of Brexit Results On The African Largest Economies by publicenemy(m): 4:51pm On Jun 24, 2016
Daivd Cameron is the worst person to hold the position of a Prime Minister in any country.


This Brexit bullsh1t started when he lost the E.U Presidential Election. He raved on about pulling Britain out of the E.U. Now he pretend to be devastated.

6 Likes

Re: Effects Of Brexit Results On The African Largest Economies by MadCow1: 4:51pm On Jun 24, 2016
bettercreature:
They were never part of schegen staten


That means no cause fo Alarm na.. undecided
Re: Effects Of Brexit Results On The African Largest Economies by lekkie073(m): 4:52pm On Jun 24, 2016
na lie jooor....nothing dey happun grin
Re: Effects Of Brexit Results On The African Largest Economies by bettercreature(m): 4:53pm On Jun 24, 2016
MadCow1:



That means no cause fo Alarm na.. undecided
No cause for alarm BREXIT is dead on arrival,scotland is determined to stay in the Eu by fire by force

4 Likes

Re: Effects Of Brexit Results On The African Largest Economies by Nobody: 4:53pm On Jun 24, 2016
Nonsense write-up

Nigeria: we are about repatriating our looted funds from UK, I see them as losers. Buhari should quickly act before David Cameron leaves in October. For instance, Diezani and Ibori should be closed accordingly, all Panama leaks in the Virgin Island should be closed and everyone belonging there should be dealt with accordingly. grin grin grin

South Africa: the wine industry would be most affected cry

Kenya: no impact, when there is China grin

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Re: Effects Of Brexit Results On The African Largest Economies by fingard02k(m): 4:53pm On Jun 24, 2016
will it affect the price of garri too?

5 Likes

Re: Effects Of Brexit Results On The African Largest Economies by erico2k2(m): 4:53pm On Jun 24, 2016
MadCow1:
So no more Shengen Visa for Boys? shocked shocked shocked
Same same jst that she gen countries will soon require visa to visit the UK.
Re: Effects Of Brexit Results On The African Largest Economies by MadCow1: 4:54pm On Jun 24, 2016
bettercreature:
No cause for alarm BREXIT is dead on arrival,scotland is determined to stay in the Eu by fire by force



Correct Guy!


Aluta Continua

1 Like

Re: Effects Of Brexit Results On The African Largest Economies by STALINN: 4:55pm On Jun 24, 2016
shocked shocked shocked
Re: Effects Of Brexit Results On The African Largest Economies by Harwoyeez(m): 4:55pm On Jun 24, 2016
There will always be a resonating effect on our economy ,this will test our resolve economically.hope naija handlers tackles it well

1 Like

Re: Effects Of Brexit Results On The African Largest Economies by macaranta(m): 4:56pm On Jun 24, 2016
British Arrogance.

3 Likes 1 Share

Re: Effects Of Brexit Results On The African Largest Economies by biggz82: 4:56pm On Jun 24, 2016
I hope say de de give me Visa, make make go apply quick b4 visa waka go hard.
Re: Effects Of Brexit Results On The African Largest Economies by seunlayi(m): 4:56pm On Jun 24, 2016
let them come home so that we can build Nigeria together

2 Likes 1 Share

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