Warning: Brexit is merely one global shift of many set to shake up economies
Britain’s proposed exit from the EU, or Brexit, has left Prime Minister Theresa May hanging by a thread. The resignation of Brexit secretary David Davis and foreign secretary Boris Johnson rattled the markets, which were already unsettled as the US and China continued to swap blows in their trade war. Although it may be confusing to some that Brexit is even a point of interest in SA, it is true that the outcome of the heated debates under way in Europe could have a knock-on effect on SA. From a corporate perspective, many South African companies have their European headquarters in the UK, which they use as a base to serve the rest of Europe. Depending on which way the Brexit needle swings, these companies may be forced to set up a base somewhere else to continue doing business in Europe. A potentially greater effect for SA and its economy could come from changes to international trade agreements. The EU is SA’s most significant trading partner, with the UK being a big part of this. ...
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