According to Engineering News, as the UK’s decision to withdraw from the European Union (EU) this week sent ripples of uncertainty and volatility across an already unsteady global economy, South Africa’s Finance Minister Pravin Gordhan has moved to assure the public of the country’s strong trade ties and resilience.
However, proponents have warned that the unprecedented move by the UK to exit the economic bloc after more than 40 years has just become a further “complicating factor” in South Africa’s already bleak economic outlook. South Africa would need to urgently re-evaluate key trade relationships with the UK and the EU over the next year to “redefine the future in changed circumstances”.
‘Brexit’ had resulted in great uncertainty and turmoil for many economies across the world. “The momentous decision in the UK referendum to withdraw from EU membership not only creates substantial uncertainty for business and policy makers in the world economy, but could also have serious unintended consequences which will need to be managed,” North-West University School of Business and Governance professor and economist Raymond Parsons said on Friday.
Government, labour and business in South Africa would need to add the possible implications of Brexit to the national policy agenda as it “recalibrated” the country’s trading relations and explored new options in the light of Brexit, said Parsons. Business Unity South Africa (Busa), which had supported a ‘remain’ position in the vote, expressed concern over the immediate impact on the rand and local markets and said it would monitor future developments, “standing ready” to engage with government with a view to “positioning South Africa appropriately”.
