Does a Brexit matter for South Africa?

The document examines the economic ties between South Africa and the UK, highlighting that the UK accounts for 3.7% of South Africa's global trade but a significant portion of its direct and portfolio investments. It analyzes three Brexit scenarios—a 'clean break', joining the EEA/EFTA, or negotiating new deals—and notes that a Brexit would remove the UK from the SADC-EU Economic Partnership Agreement. The author warns that while bilateral investments might remain stable, global financial volatility could restrict South Africa's access to financing from British banks, given that British lenders' claims on South African entities are 178% of the country's foreign currency reserves.

• The UK is a critical partner for South African investment, accounting for 45.6% of direct investment into South Africa and 10.9% of South Africa's global direct investments. As of December 2014, UK direct investments in South Africa were approximately R730 billion, which is nearly 60% of all EU direct investments in the country.
• In 2015, the UK received about 20% of all South African goods destined for Europe. The UK is particularly significant for specific exports: it received 45% of South Africa's HS71 commodities (mostly platinum) and 35% of agricultural goods (specifically apples, citrus, and grapes) exported to the EU.
• A Brexit would mean the UK no longer benefits from EU-negotiated free trade agreements, including the SADC-EU Economic Partnership Agreement (EPA). Consequently, the SADC-UK relationship would need to be renegotiated, and Mozambique would also need to negotiate a separate agreement with the UK.
• Brexit could trigger global financial volatility that may hinder South Africa's access to financing from British banks. This risk is amplified by the fact that British lenders' claims on South African entities are estimated by UniCredit to be 178% of South Africa's foreign currency reserves.

APA

South African Institute of International Affairs (2016). Does a Brexit matter for South Africa? https://saiia.org.za/research/does-a-brexit-matter-for-south-africa/

Chicago

South African Institute of International Affairs. Does a Brexit matter for South Africa? 2016. https://saiia.org.za/research/does-a-brexit-matter-for-south-africa/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Does a Brexit matter for South Africa? |date=21 June 2016 |url=https://saiia.org.za/research/does-a-brexit-matter-for-south-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2016does, author = {{South African Institute of International Affairs}}, title = {{Does a Brexit matter for South Africa?}}, institution = {South African Institute of International Affairs}, year = {2016}, month = jun, url = {https://saiia.org.za/research/does-a-brexit-matter-for-south-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }