HARARE, ZI—CNBC Africa reports lower commodity prices, a slowdown in exports, higher debt servicing costs, greater currency volatility and dollar liquidity issues are some of the challenges African economies likely will experience in the immediate aftermath of the June 23, 2016 52% to 48% British vote to exit (Brexit) the European Union (EU).
As a result of leaving Europe, Britain will need to renegotiate its trade agreements with all 162 World Trade Organisation member countries. These renegotiated trade arrangements have the potential to significantly raise the costs of doing business and increasing restrictions and barriers to trade. Any slowdown in the UK will have an indirect effect by impacting the growth outlook for other key European trading partners – thereby reducing demand for African imports.
Read the full Brexit executive summary for the tech economy in Africa in the July 2016 edition of bdpatoday.
—Sources: CNBC Africa, All Africa and Africa Progress Panel.