Opinion

Brexit: What does it mean for African investments?

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Short-term effects of Brexit were visible: lower commodity prices, higher yields on dollar bonds, rise in trade deficits, likely freezing of development assistance and Tanzania’s refusal to sign up to the East Africa Community Regional Trade Agreement, after 14 years of negotiations. Nigeria and South Africa account for over 52% of UK’s trade with Africa and so felt turbulence most.  This led to immediate risks for contracts with African stakeholders, to be assessed promptly by asset managers and investors. Renegotiation may be only one solution.