Brexit put African economies at risk

photo: (Mick Baker) rooster

The British vote to cancel the UK’s membership to the European Union, known as Brexit, is being felt in African countries.

According to many analysts, African economies will be largely affected by this unexpected decision which has already brought uncertainty in the future of business and trade deals in the continent. Sharan Burrow, General Secretary of ITUC says:

“Unions are deeply concerned about this situation which put African economies at risk and will provoke massive loss of revenues for millions of workers and their families in the continent.”

“The ITUC, therefore, urges EU and UK governments to open up fair and genuine negotiations with African governments in order to take appropriate measures that ensure that economies of the continent will remain stable during the transition period. “

"Key economic areas like raw materials exploitation, agriculture, tourism and banking, among others, could be deeply affected in countries like South Africa, Nigeria, Kenya, Angola and Uganda. Likewise, other countries with weaker economies potentially lack resilience to survive in such situation."

"Millions of jobs are at risk in the continent and this situation may increase poverty, inequality and insecurity in the whole African regions", says Sharan Burrow.

"Trade, investment and indirectly development aid will be badly affected if Brexit voids all trade agreements deals with the African continent. Brexit could also mean possible higher inflation, extend weaker growth, higher interest rates and capital outflows, and a 0.5% decline in GDP."

Fearing what the future will be in this new context, some countries like Tanzania and Uganda have refused to sign Economic Partnership Agreements while Kenya is about to hold its decision. Regional Economic Communities such as EAC (East Africa Community), ECOWAS (Economic Community of West African States), SADC (Southern African Development Community), have also expressed their worries facing this uncertainty.