What is Brexit?
Brexit is the term referred to the British Exit from the European Union.
There are many British who have argued that it is not in the best interest of the British to remain a member of the European Union with the following reasons:
- The United Kingdom’s contribution to the European Union is £13 billion per year.
- The United Kingdom wants to reduce the number of immigrants in the country, but has to allow all European citizens in the country whether they speak English or not.
- There are too many regulations within the European Union.
- Sovereign power of the members is shifting away from the individual members towards the European Union in Brussels.
Our South Africa
South Africa, previously one of the British Empire colonies, has a long history with Britain and strong ties. South Africa is the United Kingdom’s biggest trade partner in Africa and many South Africans live in Britain.
What does the Brexit consequences mean to South Africa?
As the biggest trade partner to Britain, South Africa would have to renegotiate trade deals with both the European Union and the United Kingdom. Likewise, the United Kingdom would need to implement trade deals with the European Union. The United Kingdom will no longer be committed to previous trade deals with the European Union, thus more trade deals would be available to South Africa.
Brexit will shake up the global currency markets. Investor confidence is decreased with the volatile global markets and these global shocks always have a terrible effect on the venerable and weak Rand.
With the borders of the United Kingdom open to all Europeans, immigration rules have become stricter to citizens of other countries and the work force within the United Kingdom more competitive. It is now impossible for many South Africans to work in the UK as it was years gone by, reducing the international experience of those who return to South Africa.