For those AFRICANS who campaigned vigorously for Brexit and who believed that plenty of job and opportunities are waiting on a platter of gold for Africans.
Please READ carefully
What does the exit mean for Africa?
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The UK leaving the EU is very likely to affect the global economy negatively. In May, the Governor of the Central Bank of Kenya, Patrick Njoroge, warned about the risks of the exit which he said will include increased volatility in the market. On Monday, stock markets around the world collapsed due to panic that Brexit would collapse the Eurozone.
However, it is worthy to note that this could add to the uncertainties that have affected the currencies of most African countries. The continent is suffering from the impact of fall in oil price, China’s economic slowdown as well as drop in the prices of commodity. The IMF has also reduced its projection for the continent from 3.4 percent to 3 percent. The largest economies in Africa are the worst hit by these uncertainties and countries like South Africa and Nigeria are already heading towards a recession.
According to the Brookings Institution, here are three ways this exit could affect Africa:
The end of British outwardness
Perhaps the biggest impact of the Brexit on Africa would be the end of British “outwardness.” This is the country’s concern with and response to global development issues which, from an African development perspective, reached its peak in 2005 with the UK presidency of the G8. At the G8 Summit in Scotland that year, leaders agreed to double aid to Africa and eliminate outstanding debts of the poorest countries. They made a deal to increase aid to developing countries by $50 billion a year by 2010 with at least half of this commitment going to Africa. Other commitments included increased support for African peacekeeping forces and additional investments in education and the fight against HIV/AIDS, malaria, tuberculosis and other diseases.
However, it is worthy to note that this could add to the uncertainties that have affected the currencies of most African countries. The continent is suffering from the impact of fall in oil price, China’s economic slowdown as well as drop in the prices of commodity. The IMF has also reduced its projection for the continent from 3.4 percent to 3 percent. The largest economies in Africa are the worst hit by these uncertainties and countries like South Africa and Nigeria are already heading towards a recession.
According to the Brookings Institution, here are three ways this exit could affect Africa:
The end of British outwardness
Perhaps the biggest impact of the Brexit on Africa would be the end of British “outwardness.” This is the country’s concern with and response to global development issues which, from an African development perspective, reached its peak in 2005 with the UK presidency of the G8. At the G8 Summit in Scotland that year, leaders agreed to double aid to Africa and eliminate outstanding debts of the poorest countries. They made a deal to increase aid to developing countries by $50 billion a year by 2010 with at least half of this commitment going to Africa. Other commitments included increased support for African peacekeeping forces and additional investments in education and the fight against HIV/AIDS, malaria, tuberculosis and other diseases.
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