Brexit encompasses not only a dramatic shift in economic and political ties in Europe but also in Africa where the UK, through its membership of the European Union was able to strengthen rrelationships with several nations on the continent. Following the UK’s Leave vote on June 23rd, African currencies dipped. Stocks and bonds also plunged. Due to their positions as the UK’s largest African markets, Kenya, Nigeria, and South Africa are among the prominent African States to be impacted by the UK’s move out of Europe. A lot of negotiations may have to take place as most of the trade agreements the UK has with African countries were negotiated through the EU. Inevitably, an end will come to some agreements. As the UK’s largest African market, South Africa may incur the biggest losses following Brexit. 0.1 percentage point could be shaved off South Africa’s economic growth. Fixed income securities may be influenced largely by sentiment. Yields on benchmark rand bonds due December 2026 climbed 21 basis points, to 9.09%.
Source: The Market Mongul