SA Ready To Bear Up Against Shocks After UK Divorced EU- Presidency


Following the historic exit of Britain from European Union (EU), the presidency says government will fully contain the situation. In addition, President Jacob Zuma noted that South Africa is well placed to withstand any financial shocks as a result of the split.

Speaking further in a statement, Zuma said, “Our banks and financial institutions are well positioned to withstand financial shocks to the system as demonstrated in previous episodes including the 2008/09 global financial crisis. We are therefore confident that our financial system including the banks and the regulatory framework are extremely resilient and reliable.”

South Africa’s number one citizen disclosed that it will take two years for the institutional changes that this vote implies to be negotiated and that the country remains committed to retaining strong trade and financial relations with both Britain and the European Union.

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President Zuma stated that the Reserve Bank and the National Treasury are closely monitoring the unfolding developments and will advise the South African public where necessary.

“In this context‚ our ongoing efforts as South Africans‚ government‚ business‚ labour and civil society to reignite growth become that much more urgent and critical.

The uncertainty that arises from this vote means that the volatility that has characterised capital markets in the lead-up to the vote may persist,” the statement added.

Hours ago, Britain voted to leave the European Union in a referendum, with the decision throwing into question the fate of the 28-nation bloc. Brexit campaign received 52 percent in Thursday’s historic referendum.

However, Britain’s decision to divorce the EU was greeted with Prime Minister David Cameron’s resignation. Cameron, who supported the campaign for Britain to remain in the EU, said the British people made “a very clear decision to take a different path.

He added, “As such, I think the country requires fresh leadership to take it in this direction. I will do everything I can as PM to steady the ship in the coming weeks and months. But I do not think it would be right for me to try to be the captain that steers our country to its next destination.

This is not a decision I’ve taken lightly, but I do believe it is in the national interest to have a period of stability and then the new leadership required.

There is no need for a precise timetable today, but in my view, we should aim to have a new PM in place by the start of the conservative party conference in October”.

On the other hand, UKIP leader, Nigel Farage, who had backed a vote to Leave declared victory in a speech held in London.

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“The dawn is breaking on an independent United Kingdom. I hope this victory brings down this failed project and leads us to a Europe of sovereign nation states, trading together, being friends together, cooperating together, and let’s get rid of the flag, the anthem, Brussels and all that has gone wrong.”

“Let June the 23rd go down in history as our Independence Day,” he heartily said.

Meanwhile, Britain’s Foreign Secretary Philip Hammond has predicted that the UK’s exit would diminish Britain’s global voice.