The African Union (AU) leaders have met to analyze the impact of this event and, of course, look at ways toward an even bigger continental integration of the continent and ways to benefit from this momentous event. It seems that Brexit has created the possibility of some form of economic change in Africa. This would be from both parties, the EU and UK.

The issues facing Africa's growth and recovery during this time are hugely influenced by the slowing down of China's economy (without a doubt, the main bilateral trading party). Then we can see the US Fed raising interest rates borrowing options becoming less favorable, the drought and El Nino, and finally, prices of Africa's main exports - mining, metals, and oil have fallen with low demand and plentiful supply.

This gives rise to rethinking policies, new strategies, and approaches for 2016 and beyond.

So for South Africa and the rest of Africa, particularly SA, even with our politicians having a short-term calendar because of elections, we need macro-economic management and keep on course for medium to long-term policy management. Starting with:

A.) Spending internal money through investments

B.) And in growing human capital and localized business

C.) Strengthen our non-mining and non-financial economies.

Trade with the Trans-Pacific Partnership (TPP) agreements from 2015 with countries which include the United States, Japan, Canada, Mexico, Australia, Vietnam, Malaysia, and Chile, needs to be a key focus of leaders now.

Of course, the United States is constantly engaged in trade negotiations with the European Union. This will cover about 55 to 60 percent of global GDP, as Africa is not involved here. Will the US share this with Africa, and can this work. Or will Africa be ignored and confined to a shrinking share of international trade and lose its appeal as a destination for investment? This is a significant danger.

The attraction for the EU and the UK independently, however, lies in the fact that the African Union has committed to completing the African economies integration plan by 2017, resulting in 54 African countries representing more than a billion people and between R42 and R45 trillion Rands in GDP. We could see an intra-Africa trade bouncing back by more than 50% within the next 5 to 6 years. Why would the EU and the UK not want a slice of that action?

In favor of the African Union, we know that the EU has way more financial resources than the AU and that the AU's budget amounts to about 1 percent of the EU's; however, even though the AU does not have the money, they have a population of over 1,050 million people—double that of the EU.

Africa has a young and dynamic workforce, with the average age of 20 making up 20% of the region's total population – that needs harvesting!


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. I am an avid blogger, and a gatherer of information, and I love politics, finance, and the future. His hobbies include making grappa, being a sous chef (foodie) to his chef wife, and reading everything he can.