By Chris Green
Brexit is a shorthand way of referring to the British exit from the EU. It is a word that owes something to the term "Grexit," which has been used for several years to refer to the possibility that Greece might leave the Eurozone and now has been adopted and will probably end up in Webster's dictionary.

The impact of one of the EU's most prominent and most prosperous economies leaving the EU is momentous. Its repercussions are being felt by markets worldwide, apart from the direct political and economic fallouts in the UK and inside the EU.
So what does this mean to us in South Africa, and how will this impact our struggling economy.
Well, for once, we cannot blame politicians, bankers, foreigners, bureaucrats, and even political correctness, but can we blame Brexit? 

Resignation and new Prime Minister
So the relationship between these two has been frosty, to say the least, which started when in 2014, Zuma was told he could only meet deputy Prime Minister Clegg as Cameron was too busy and then before that, in 2011, when President Zuma accused Britain and America of attempting "regime change" during the uprising against Colonel Gaddafi in Libya.

Whichever way we look at it, this can only improve, because we need these relationships. Secondly, we need investors and allies to prevent us from being downgraded even further by the Moody's of the world. A perfect time to mend relationships with a new Prime Minister, elections looming in South Africa, and the imminent departure of a new President at the next General elections in South Africa.

With "The Article 50 process being a divorce: who gets the house, who gets the kids, who gets the bank accounts," as senior EU officials have said, referring to priorities such as trade, settling the EU budget, and the status of Britons living in other EU states and of EU citizens in Britain - several million people in total. "We must find alternative countries and continents to import from and export to." The time is right for South Africa to flex whatever influence it has now while the divorce is happening.

Remember, new trade barriers would hurt both sides' economies. However, a new trade would benefit all. But the EU fears that the political "domino effect" of other countries voting to quit the bloc would cost more long-term. But would it be for the BRICS bloc and other countries? That is the question.
So the big question is:  WHERE DOES THE EU GO FROM HERE?
The EU needs quickly to fill a 7-billion-euro hole in its 145-billion-euro annual budget, which is currently fixed out to 2020, as it loses Britain's contributions while saving on what Britons receive from EU accounts. So where will that money come from? The USA is unlikely, Australasia – I doubt it – That leaves Africa!
We already see that the week of 13th July that President Zuma signed accords for higher education, cultural cooperation, and development cooperation with President Hollande from France. Coincidence, I think not, because Britain's decision to quit the European Union would not hurt South Africa's ties with the world's largest trading bloc. – From the horse's mouth.
With the Southern African economic bloc seeking $ 2.7 billion for drought relief, opportunities are springing up for those who see the ties and investment opportunities within the EU environment staring them in the face – is this a quid pro quo?

SO WHAT CHANGES?
A lot, unless the EU responds quickly.
The EU should put its excellent and largely untapped credit to use. Leaders would be acting irresponsibly if they failed to employ the EU's borrowing capacity when its existence is at stake.
Make the deals, secure the loans, and open the trade with new partners.
We see Kenya taking strain because of the Pound exchange rate being poorer than when they negotiated their payments in pounds for exports; this is where new negotiations should be struck immediately to secure the products and services but at the correct exchange rate. It's the future that needs attention.

So Africa seems a likely candidate for some exciting new ventures, and with Theresa May as the new Prime Minister, her support for Africa starts with her shoes….
Photo Credit: Christopher Furlong/GETTY Images. 



About the author:
Chris Green - Financial Entrepreneur
http://coronation.com/global.
A forerunner with Mortgage Origination in South Africa. Established the first mortgage-independent company in the UAE - Middle East. Managed lead generation in the Money transfer industry internationally. Studied Marine Radio, IT, and Finance. Has expertise in IT technology background consulting in Database Management and Software Design. Introduced the first artificial intelligence testing system for computer programmers in South Africa. Has presented various papers and products in Dubai, New York, Boston, London, Dublin, Milan, Turin, and Paris on subjects ranging from Darkroom Operations for IT to Creating Finance modules for Property Letting. Currently, an avid blogger, a gatherer of information, and loves politics, finance, and the future. His hobbies include making grappa, being a sous chef (foodie) to his chef wife,, and reading everything he can.