South Africa to act on any 'Brexit' shocks on the economy

intern

June 24, 2016 1:43 PM

Gordhan said in an audio statement that financial institutions in Africa's most industrialised country could withstand any shocks after the unexpected outcome of the vote.

South Africa to act on any Brexit shocks on the economy: Finance Minister

South Africa's Treasury and the central bank will take any measures necessary to deal with implications of Britain's exit from the European Union on the domestic economy, Finance Minister Pravin Gordhan said on Friday.

Gordhan said in an audio statement that financial institutions in Africa's most industrialised country could withstand any shocks after the unexpected outcome of the vote.

"The trade links between South Africa, Britain and the European Union are fairly strong and are based on solid agreements and we have a two-year period during which whatever changes need to be made to agreements and treaties can be made," Gordhan said in the recording released by the Treasury.

The vote will initiate at least two years of divorce proceedings with the EU, the first exit by any member state.

Quitting the EU could cost Britain access to the EU's trade barrier-free single market and means it must seek new trade accords with countries around the world.

The Brexit vote sent the rand tumbling more than 8 percent before paring some of its losses, while government bonds and stocks were also plunged into a tailspin.

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