MARKET UPDATE – AFRICA (Abridged)

A financial Advisory
Company
Note on Brexit and sub-Saharan Africa
The outcome of Britain’s June 2016 referendum that favored the country’s exit from the European Union has roiled global
markets, notably in equities and foreign exchange. In sub-Saharan Africa, we anticipate the following to be key areas of
interest:
• With the Sterling Pound having suffered precipitous depreciation, it could present an opportune window for
economies in sub-Saharan Africa to service Sterling Pound denominated debt at a cheaper rate. This is, however,
complicated by the fact that a number of economies are reeling from subdued commodity prices and with little room
for fiscal adjustment
• Economies in sub-Saharan Africa could potentially have greater leverage in negotiation of trade terms with Britain
going forward in view of the fact that the latter has lost the pivot of being part of the expanse European Union market
• Should Brexit mark the onset of further fragmentation of the European Union, select sub-Saharan Africa economies
such as Kenya stand to lose a major export destination that could affect the balance of payments
Our team provided commentary on the World Economic Forum blog on lessons Africa could draw from Brexit with a focus
on managing immigration.
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Elsewhere, Senior Research Analyst, Julians Amboko, provided commentary on policy options available for Egypt in light
of its new status as Africa’s second largest economy.
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JULY 2016 | MARKET UPDATE – AFRICA
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