- ‘Brexit to Benefit Nigerian Exporters, Others’
The long-term effects of the proposed exit of the United Kingdom from the European Union are expected to be net positive for African exporters, Ecobank Transnational Incorporated has said.
The pan-African lender, however, said trade and investment in the continent might decline initially.
The Head of Research, ETI, Edward George, said that in the longer term, capital flows were likely to increase between the UK and English-speaking countries such as Kenya, Ghana and Nigeria.
According to him, while increased exports of agricultural and mineral products will partly depend on whether the UK develops as a hub for processing, transporting and consuming those products, the biggest opportunities may lie in digital service and financial technology collaboration.
The UK is sub-Saharan Africa’s sixth-largest trading partner with total flows of $20.8bn last year. Foreign-Direct Investment from the UK to Africa was $2.4bn last year, according to a report by accounting firm EY.